Revised Code of Ethics in the Phils - 2010

Technical assistance of this nature and advice on

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Unformatted text preview: es significant input regarding such matters as accounting principles and financial statement disclosures, the appropriateness of controls and the methods used in determining the stated amounts of assets and liabilities. Technical assistance of this nature and advice on accounting principles for financial statement audit clients are an appropriate means to promote the fair presentation of the financial statements. The provision of such advice does not generally threaten the firm’s independence. “Similarly, the financial statement audit process may involve assisting an audit client in resolving account reconciliation problems, analyzing and accumulating information for regulatory reporting, assisting in the preparation of consolidated financial statements 9 (including the translation of local statutory accounts to comply with group accounting policies and the transition to a different reporting framework such as Philippine Financial Reporting Standards), drafting disclosure items, proposing adjusting journal entries and providing assistance and advice in the preparation of local statutory accounts of subsidiary entities. These services are considered to be a normal part of the audit process and do not, under normal circumstances, threaten independence.” The Ethics Committee (FY 2012-2013) proposes the following provisions: “Sec. 290.169 Preparing Accounting Records and Financial Statements “The audit process, however, necessitates dialogue between the firm and management of the audit client, which may involve: A. The application of accounting standards or policies and financial statement disclosure requirements; B. The appropriateness of financial and accounting control and the methods used in determining the stated amounts of assets and liabilities; or C. Proposing adjusting journal entries. “These activities are considered to be a normal part of the audit process and do not generally create threats to independence. “Similarly, the client may request technical assistance from the firm on matters such as resolving account reconciliation problems, or analyzing and accumulating information for regulatory reporting. In addition, the client may request technical advice on accounting issues, such as the conversion of existing fi...
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This document was uploaded on 04/03/2014.

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