Revised Code of Ethics in the Phils - 2010

This reduces the risk of the firm inadvertently

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: d that cannot be reduced to an acceptable level by the application of safeguards the nonassurance service shall not be provided. Management Responsibilities 291.143 Management of an entity performs many activities in managing the entity in the best interests of stakeholders of the entity. It is not possible to specify every activity that is a management responsibility. However, management responsibilities involve leading and directing an entity, including making significant decisions regarding the acquisition, deployment and control of human, financial, physical and intangible resources. 291.144 Whether an activity is a management responsibility depends on the circumstances and requires the exercise of judgment. Examples of activities that would generally be considered a management responsibility include: • Setting policies and strategic direction; • Directing and taking responsibility for the actions of the entity’s employees; • Authorizing transactions; 226 • Deciding which recommendations of the firm or other third parties to implement; and • Taking responsibility for designing, implementing and maintaining internal control. 291.145 Activities that are routine and administrative, or involve matters that are insignificant, generally are deemed not to be a management responsibility. For example, executing an insignificant transaction that has been authorized by management or monitoring the dates for filing statutory returns and advising an assurance client of those dates is deemed not to be a management responsibility. Further, providing advice and recommendations to assist management in discharging its responsibilities is not assuming a management responsibility. 291.146 Assuming a management responsibility for an assurance client may create threats to independence. If a firm were to assume a management responsibility as part of the assurance service, the threats created would be so significant that no safeguards could reduce the threats to an acceptable level. Accordingly, in providing assurance services to an assurance client, a firm shall not assume a management responsibility as part of the assurance service. If the firm assumes a management respons...
View Full Document

This document was uploaded on 04/03/2014.

Ask a homework question - tutors are online