Everyday ethics: Long-term audit clients

by

Ed.

From cpaaustralia.com.au: Long-term audit relationships can create ethical issues, particularly threats to independence such as familiarity and self-interest.

To manage these threats, firms can implement partner rotations, especially for listed companies, or, in smaller firms, rotate senior audit staff and establish robust quality review procedures.

Maintaining communication with clients about independence concerns and documenting these discussions is essential to uphold ethical standards.

Filed under: Accounting & Audit

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