Revised Code of Ethics in the Phils - 2010

E if maximum is seven years then seven years less the

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Unformatted text preview: f years the individual may continue to serve the client in that capacity before rotating off the engagement is the maximum service period allowed less the number of years already served (i.e. if maximum is seven years, then seven years less the number of years already served). If the individual has less than two years remaining or has exceeded the maximum service period allowed when the client becomes a public interest entity, the partner may continue to serve in that capacity for a maximum of two additional years before rotating off the engagement.” 8 b. Paragraph 290.155 As in Paragraph 290.154 of the Code, the last sentence of the paragraph was similarly modified to replace “seven years” with “the maximum allowed number of years” as read: “If an independent regulator in the relevant jurisdiction has provided an exemption from partner rotation in such circumstances, an individual may remain a key audit partner for more than the maximum allowed number of years, in accordance with such regulation, provided the independent regulator has specified alternative safeguards which are applied, such as a regular independent external review.” 11. Sec. 290.169 Preparing Accounting Records and Financial Statements Sec. 290.169 of the IESBA Code provides: “The audit process, however, necessitates dialogue between the firm and management of the audit team, which may involve: - The application of accounting standards or policies and financial statement disclosure requirements; The appropriateness of financial and accounting control and the methods used in determining the stated amounts of assets and liabilities; or Proposing adjusting journal entries. These activities are considered to be a normal part of the audit process and do not, generally, create threats to independence.” The PICPA National Board previously approved the following provisions recommended by the Ethics Committee (FY 2010-2011): “Sec. 290.169 Preparing Accounting Records and Financial Statements “The audit process involves extensive dialogue between the firm and management of the financial statement audit client. During the process, management requests and receiv...
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This document was uploaded on 04/03/2014.

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