This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ncil.
A firm may be (a) a sole proprietorship or partnership of professional accountants; (b) an entity that
controls such parties, through ownership, management or other means; and © an entity controlled by
such parties, through ownership, management or other means.
The word “corporation” was deleted because a corporate form for the professional practice of
accountancy is not allowed in the Philippines.
3. Professional Accountant
Professional accountant is an individual who holds a valid certificate issued by the Board of
Accountancy (i.e., CPA), whether he/she be in public practice, industry or commerce, the public sector,
The definition in the IESBA Code was modified from simply “An individual who is a member of an IFAC
4. Effectivity Date
This Philippine Code (Revised 2012) is effective January 1, 2013 (the IESBA Code from which it is
based is effective January 1, 2011). 12 Additional changes because of the change in effective date include:
1. Public Interest Entities
Section 290 of the Code contains additional independence provisions when the audit or review client is
a public interest entity. The additional provisions that are applicable because of the new definition of a
public interest entity or the guidance in paragraph 290.26 are effective on January 1, 2014 (January 1,
2012 in the IESBA Code).
2. Partner Rotation
a. For a partner who is subject to the rotation provisions in paragraph 290.51 because the partner
meets the definition of the new term “key audit partner”, and the partner is neither the engagement
partner nor the individual responsible for the engagement quality review, the rotation provisions are
effective for the audits or reviews of financial statements for years beginning on or after December
15, 2013 (December 15, 2011 in IESBA Code). For example, in case of an audit client with a
calendar year –end, a key audit partner, who is neither the engagement partner nor the individual
responsible for the engagement qual...
View Full Document
This document was uploaded on 04/03/2014.
- Spring '14