Revised Code of Ethics in the Phils - 2010

And c advising immediate or close family members of

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Unformatted text preview: or closefamily member. 350.3 The existence and significance of any threats will depend on the nature,value and intent behind the offer. If a reasonable and informed third party,weighing all the specific facts and circumstances, would consider theinducement insignificant and not intended to encourage unethical behavior,then a professional accountant in business may conclude that the offer ismade in the normal course of business and may generally conclude thatthere is no significant threat to compliance with the fundamental principles. 350.4 The significance of any threats shall be evaluated and safeguards applied whennecessary to eliminate them or reduce them to an acceptable level. When thethreats cannot be eliminated or reduced to an acceptable level through theapplication of safeguards, a professional accountant in business shall not acceptthe inducement. As the real or apparent threats to compliance with thefundamental principles do not merely arise from acceptance of an inducementbut, sometimes, merely from the fact of the offer having been made, additionalsafeguards shall be adopted. A professional accountant in business shallevaluate any threats created by such offers and determine whether to take one ormore of the following actions: (a) Informing higher levels of management or those charged withgovernance of the employing organization immediately when suchoffers have been made; 121 (b) Informing third parties of the offer – for example, a professional body orthe employer of the individual who made the offer; a professionalaccountant in business may however, consider seeking legal advicebefore taking such a step; and (c) Advising immediate or close family members of relevant threats andsafeguards where they are potentially in positions that might result inoffers of inducements, for example, as a result of their employmentsituation; and (d) Informing higher levels of management or those charged withgovernance of the employing organization where immediate or closefamily members are employed by competitors or potential suppliersof tha...
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This document was uploaded on 04/03/2014.

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