Revised Code of Ethics in the Phils - 2010

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Unformatted text preview: left to the client. The firm may generally provide such services as reviewing the professional qualifications of a number of applicants and providing advice on their suitability for the post. In addition, the firm may interview candidates and advise on a candidate’s competence for financial accounting, administrative or control positions. Audit clients that are public interest entities 290.215 A firm shall not provide the following recruiting services to an audit client that is a public interest entity with respect to a director or officer of the entity or senior management in a position to exert significant influence over the preparation of the client’s accounting records or the financial statements on which the firm will express an opinion: • Searching for or seeking out candidates for such positions; and • Undertaking reference checks of prospective candidates for such positions. 199 Corporate Finance Services 290.216 Providing corporate finance services such as: • assisting an audit client in developing corporate strategies; • identifying possible targets for the audit client to acquire; • advising on disposal transactions; • assisting finance raising transactions; and • providing structuring advice, may create advocacy and self-review threats. The significance of any threat shall be evaluated and safeguards applied when necessary to eliminate the threat or reduce it to an acceptable level. Examples of such safeguards include: • Using professionals who are not members of the audit team to provide the services; or • Having a professional who was not involved in providing the corporate finance service advise the audit team on the service and review the accounting treatment and any financial statement treatment. 290.217 Providing a corporate finance service, for example advice on the structuring of a corporate finance transaction or on financing arrangements that will directly affect amounts that will be reported in the financial statements on which the firm will provide an opinion may create a selfreview threat. The existence and significance of any threat will depend on factors s...
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This document was uploaded on 04/03/2014.

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