Revised Code of Ethics in the Phils - 2010

The paragraphs do not describe all of the

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Unformatted text preview: urance service was provided to the assurance client during or after the period covered by the subject matter information but before the assurance team begins to perform assurance services and the service would not be permitted during the period of the assurance engagement, the firm shall evaluate any threat to independence created by the service. If any 214 threat is not at an acceptable level, the assurance engagement shall only be accepted if safeguards are applied to eliminate any threats or reduce them to an acceptable level. Examples of such safeguards include: • Not including personnel who provided the non-assurance service as members of the assurance team; • Having a professional accountant review the assurance and nonassurance work as appropriate; or • Engaging another firm to evaluate the results of the non-assurance service or having another firm re-perform the non-assurance service to the extent necessary to enable it to take responsibility for the service. However, if the non-assurance service has not been completed and it is not practical to complete or terminate the service before the commencement of professional services in connection with the assurance engagement, the firm shall only accept the assurance engagement if it is satisfied: (a) The non-assurance service will be completed within a short period of time; or (b) The client has arrangements in place to transition the service to another provider within a short period of time. During the service period, safeguards shall be applied when necessary. In addition, the matter shall be discussed with those charged with governance. Other Considerations 291.33 There may be occasions when there is an inadvertent violation of this section. If such an inadvertent violation occurs, it generally will be deemed not to compromise independence provided the firm has appropriate quality control policies and procedures in place equivalent to those required by ISQCs to maintain independence and, once discovered, the violation is corrected promptly and any necessary safeguards are applied to eliminate any threat or reduce it to an acceptable...
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