Revised Code of Ethics in the Phils - 2010

The ethics committee fy 2012 2013 proposes to add in

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Unformatted text preview: onsibility and urgency that the work entails.” The Ethics Committee (FY 2012-2013) proposes to add in Sec. 240.1 a new paragraph and to revise Sec. 240.3 thereof as follows: “Sec. 240.1 In general “Fees charged for assurance engagements should be a fair reflection of the value of the work involved and should take into account among others: (a) the skill and knowledge required for the type of work involved; (b) the level of training and experience of the persons necessarily engaged on the work; © the time necessarily occupied by each person engaged on the work; and (d) the degree of responsibility and urgency that the work entails. “Sec. 240.3 Safeguards to threats “The significance of such threats will depend on factors such as the level of fee quoted and the services to which it applies. In view of these potential threats, safeguards should be considered and applied as necessary to eliminate them or reduce them to an acceptable level. “Safeguards which may be adopted include (a) making the client aware of the terms of the engagement, and in particular, the basis on which fees are charged and which services are covered by the quoted fee; (b) assigning appropriate time and qualified staff to the task.” 3 4. Sec. 290(a) Interpretations and (b) Independence The PICPA National Board previously approved the following provisions recommended by the Ethics Committee (FY 2010-2011): “Sec. 290(a) Interpretations “These interpretations are directed towards the application of the IFAC Code of Ethics for Professional Accountants to the topics of the specific queries received. Those subject to the regulations of other authoritative bodies, such as the SEC, BSP, IC, and CDA may wish to consult with them for their positions on these matters.” “Sec. 290(b) Independence – Audit and Review “This addresses the independence requirements for audit engagements and review engagements which are assurance engagements in which professional accountants in public practice express a conclusion on financial statements.” However, the Ethics Committee (FY 2012-2013) proposes to delete the above provisions on interpretations an...
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This document was uploaded on 04/03/2014.

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