Revised Code of Ethics in the Phils - 2010

Supervisory procedures terminating the financial or

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Unformatted text preview: professional accountant in public practice who provides an assurance service shall be independent of the assurance client. Independence of mind and in appearance is necessary to enable the professional accountant in public practice to express a conclusion, and be seen to express a conclusion, without bias, conflict of interest, or undue influence of others. Sections 290and 291 provide specific guidance on independence requirements for professional accountants in public practice when performing assurance engagements. 280.3 The existence of threats to objectivity when providing any professional service will depend upon the particular circumstances of the engagement and the nature of the work that the professional accountant in public practice is performing. 38 280.4 A professional accountant in public practice shall evaluate the significance of any threats and apply safeguards when necessary to eliminate them or reduce them to an acceptable level. Examples of such safeguards include: • Withdrawing from the engagement team. • Supervisory procedures. • Terminating the financial or business relationship giving rise to the threat. • Discussing the issue with higher levels of management within the firm. • Discussing the issue with those charged with governance of the client. If safeguards cannot eliminate or reduce the threat to an acceptable level, the professional accountant shall decline or terminate the relevant engagement. 39 SECTION 290 INDEPENDENCE―AUDIT AND REVIEW ENGAGEMENTS CONTENTS Paragraph Structure of Section .............................................................................................................. 290.1 A Conceptual Framework Approach to Independence ........................................................ 290.4 Networks and Network Firms .............................................................................................. 290.13 Public Interest Entities ..................................................................
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