Financial Reporting & External Audit

Question 1

How can the audit committee review and monitor an auditors independence (prov 25)?

Answer 1

1. Ensure auditors & staff do not have relationships conflicts (e.g family, financial, employment, investment)
2. Review internal policies of the auditors to maintain independence
3. Ensure arrangements are in place for a rotation of audit partner (every 5 years)
4. Ensure arrangements in place for an audit tenure (every 10 years)
5. Checking that auditors are not carrying out an advocacy role
6. Have policies in place to monitor any non-audit services being carried out and the potential impact this may have