Revised Code of Ethics in the Phils - 2010

The significance of the threats shall be evaluated

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Unformatted text preview: n the individual held with the client; • The length of time since the individual left the client; and • The role of the professional on the assurance team. The significance of any threat shall be evaluated and safeguards applied when necessary to reduce the threat to an acceptable level. An example of such a safeguard is conducting a review of the work performed by the individual as part of the assurance team. Serving as a Director or Officer of an Assurance Client 291.135 If a partner or employee of the firm serves a director or officer of an assurance client, the selfreview and self-interest threats would be so significant that no safeguards could reduce the threats to an acceptable level. Accordingly, no partner or employee shall serve as a director or officer of an assurance client. 291.136 The position of Company Secretary has different implications in different jurisdictions. Duties may range from administrative duties, such as personnel management and the maintenance of company records and registers, to duties as diverse as ensuring that the company complies with regulation or providing advice on corporate governance matters. Generally, this position is seen to imply a close association with the entity. 291.137 If a partner or employee of the firm serves as Company Secretary for an assurance client, selfreview and advocacy threats are created that would generally be so significant that no safeguards could reduce the threats to an acceptable level. Despite paragraph 291.135, when this practice is specifically permitted under local law, professional rules or practice, and provided management makes all relevant decisions, the duties and activities shall be limited to those of a routine and administrative nature, such as preparing minutes and maintaining statutory returns. In those circumstances, the significance of any threats shall be evaluated and safeguards applied when necessary to eliminate the threats or reduce them to an acceptable level. 291.138 Performing routine administrative services to support a company secretarial function or providing advice in relation to company secretarial...
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