| 280.1 |
A registered auditor shall determine when providing any professional service whether there are threats to compliance with the fundamental principle of objectivity resulting from having interests in, or relationships with, a client or its directors, officers or employees. For example, a familiarity threat to objectivity may be created from a family or close personal or business relationship. |
| 280.2 |
A registered auditor who provides an assurance service shall be independent of the assurance client. Independence of mind and in appearance is necessary to enable the registered auditor to express a conclusion, and be seen to express a conclusion, without bias, conflict of interest, or undue influence of others. Sections 290 and 291 provide specific guidance on independence requirements for registered auditors when performing assurance engagements. |
| 280.3 |
The existence of threats to objectivity when providing any professional service will depend upon the particular circumstances of the engagement and the nature of the work that the registered auditor is performing. |
| 280.4 |
A registered auditor shall evaluate the significance of any threats and apply safeguards when necessary to eliminate them or reduce them to an acceptable level. Examples of such safeguards include: |
| • |
Withdrawing from the engagement team. |
| • |
Supervisory procedures. |
| • |
Terminating the financial or business relationship giving rise to the threat. |
| • |
Discussing the issue with higher levels of management within the firm. |
| • |
Discussing the issue with those charged with governance of the client. |
If safeguards cannot eliminate or reduce the threat to an acceptable level, the registered auditor shall decline or terminate the relevant engagement.
South African Institute for Drug Free Sport Act, 1997
