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Introduction to session

The presentation addresses the topic of Independence. This is required of the firm, network firms, partner and directors as well all staff engaged in an audit of a client. Audit entails not only the usual annual work done for public interest entities but also relates to the review of financial statements in respect of smaller clients where this is provided for in legislation.

What will be covered

Independence must be assessed at different stages during the audit and at the time a new client is onboarded.

Thus, the presentation will set out the requirements for independence as to timing and as to persons or entities at the time any before client services will commence. It also provided information on threats to independence and actions that can be taken to overcome any independence problems should they occur.

Timing

Before the onboarding of a new client an assessment must be made of the independence of the firm and where network firms will be involved, such as may be the case in international or national audits.

Before the commencement of the audit planning independence of the firm and the network firms must again be confirmed. It is also required that the independence of the senior staff involved in the service provision. Are assessed for independence.

Persons and entities

Independence requirements detail that all persons engaged on an audit must be independent from the audit client at the beginning, during and at the end of the audit. This also relates to review partners and other partners such a tax partners.

These persons can be either partners/directors of the firm or network firm and any employees.

Threats to independence

Threats to independence may occur ant any time during the audit engagement and need to be addressed so that independence is maintained throughout the services provision.

Actions that can be taken to ensure independence

There are various steps that can be taken to ensure that independence is maintained which will depend on the circumstances of the situation. Details of this will be provided.

Parties that need to be informed

The Code also provided that certain communications need to be made with senior staff of the client, client’s management, those charged with governance in a timely fashion.

Outcome

The information provide will assist professional accountants in providing a service to their clients that is following the Code’s compulsory requirements for benefit of clients and to protect the public interest.

Who will the session be targeted to

The session is target to partner/ directors of professional services firms and their senior employees.

Will anything relating to current events be covered during the webinar which you think attendees should pay particular attention to?

Independence is a regular subject covered in professional journals in quality review assessments reports prepared by audit regulators and membership organisations.

Course Level

The level of the course covers foundational matters as well as intermediate materials.