Revised Code of Ethics in the Phils - 2010

This reduces the risk of thefirm inadvertently making

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: that has been authorizedby management or monitoring the dates for filing statutory returns andadvising an audit client of those dates is deemed not to be a managementresponsibility. Further, providing advice and recommendations to assistmanagement in discharging its responsibilities is not assuming amanagement responsibility. 290.165 If a firm were to assume a management responsibility for an audit client, thethreats created would be so significant that no safeguards could reduce thethreats to an acceptable level. For example, deciding whichrecommendations of the firm to implement will create self-review and self-interestthreats. Further, assuming a management responsibility creates afamiliarity threat because the firm becomes too closely aligned with theviews and interests of management. Therefore, the firm shall not assume amanagement responsibility for an audit client. 290.166 To avoid the risk of assuming a management responsibility when providingnon-assurance services to an audit client, the firm shall be satisfied that amember of management is responsible for making the significant judgmentsand decisions that are the proper responsibility of management, evaluatingthe results of the service and accepting responsibility for the actions to betaken arising from the results of the service. This reduces the risk of thefirm inadvertently making any significant judgments or decisions on behalfof management. The risk is further 65 reduced when the firm gives the clientthe opportunity to make judgments and decisions based on an objective andtransparent analysis and presentation of the issues. Preparing Accounting Records and Financial Statements General Provisions 290.167 Management is responsible for the preparation and fair presentation of thefinancial statements in accordance with the applicable financial reportingframework. These responsibilities include: • Originating or changing journal entries, or determining the accountclassifications of transactions; and • Preparing or changing source documents or originating data, inelectronic or other form, evidencing the occurrence of a transaction (forexample, purchase orders, payroll time records, and customer orders). 290...
View Full Document

This document was uploaded on 04/03/2014.

Ask a homework question - tutors are online