Ethics: Long Association of Personnel with an Audit Client

21 October 2022
Auditing and Assurance
South African Accounting Academy

This is for use by registered auditors.

This publication, which has been prepared with the assistance of the IRBA's Committee for Auditor Ethics, seeks to enhance current practice by providing a five-step approach to identify and assess threats to independence due to long association.

This IRBA Staff Ethics Practice Alert covers the following topics:

Performing the long association assessment for a company versus any other audit client (which includes related entities).
Rotation requirements for key audit partners (including engagement partners and engagement quality reviewers) versus other members of the audit team.
Determination of the applicable provisions by type of entity.

Role changes with respect to the audit client or within the audit team (the impact of prior association on the level of the long association threat to independence).

Click here to download the Staff Ethics Alert:

https://www.irba.co.za/upload/Staff%20Ethics%20Alert%20-%20Long%20Association.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

Auditors must adhere to Section 92 of the Companies Act No. 71 of 2008 prescribes requirements for the rotation of auditors, while Section 540 of the IRBA Code of Professional Conduct for Registered Auditors (Revised November 2018) prescribes requirements for the long association of personnel (including partner rotation).
This document was issued to enhance current practice by providing a 5-step approach to identify and assess threats to independence due to long association.

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