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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
“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
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This document was uploaded on 04/03/2014.
- Spring '14