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AAA M2f

The document outlines auditor independence regulations, including conflict of interest prohibitions and limits on non-audit services. It details auditor and audit firm rotation requirements, including maximum time-on periods and cooling-off periods. Additionally, it notes that Australia will transition to a five-year cooling-off period starting December 31, 2023, as approved by the APESB.

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3 views

AAA M2f

The document outlines auditor independence regulations, including conflict of interest prohibitions and limits on non-audit services. It details auditor and audit firm rotation requirements, including maximum time-on periods and cooling-off periods. Additionally, it notes that Australia will transition to a five-year cooling-off period starting December 31, 2023, as approved by the APESB.

Uploaded by

D Ho
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Advanced Audit and Assurance

Module 2
Auditor independence
Auditor independence
Auditor independence

Written declaration
• s.307C – aware of any contraventions of audit independence?

No conflict of interest permitted


• s.324CD – defined (not objective/impartial)
• s.324CA – conflict exists and aware and not addressed
Non-audit services
• s.324CE – Maximum of 10 hours during the period to which audit relates

Independence test
• s.324CF – Based on influence, participation in activities, absence of financial
arrangements
Auditor independence

Auditor rotation
• s.324DA – for auditors with a significant role
• Maximum time-on periods
• Cooling-off periods

Audit firm rotation


Partner rotation per the code
Public interest entities: listed and those defined by legislation or
regulation as public interest entities.

In Australia APESB has approved the above changes and a transition period
beginning 31 December 2023 has been set when the current three-year
cooling off period will transition to the five-year period set by the code.

Source: CPA Australia 2019, Advanced Audit and Assurance Study guide, 7th edn, Table 2.1, pg.82
Sarbanes-Oxley independence requirements

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