Auditing Profession Act, 2005 (Act No. 26 of 2005)

Board Notices

Independent Regulatory Board for Auditors

New Rules Regarding Improper Conduct and Code of Professional Conduct for Registered Auditors

Code of Professional Conduct for Registered Auditors

Part B : Registered Auditors in Public Practice

Section 291 : Independence - Other Assurance Engagements

Long Association of Senior Personnel with Assurance Clients

Purchase

291.139

Familiarity and self-interest threats are created by using the same senior personnel on an assurance engagement over a long period of time. The significance of the threats will depend on factors such as:

•	How long the individual has been a member of the assurance team;

•	The role of the individual on the assurance team;

•	The structure of the firm;

•	The nature of the assurance engagement;

•	Whether the client's management team has changed; and

•	Whether the nature or complexity of the subject matter information has changed.

The significance of the threats shall be evaluated and safeguards applied when necessary to eliminate the threats or reduce them to an acceptable level. Examples of such safeguards include:

•	Rotating the senior personnel off the assurance team;

•	Having a registered auditor who was not a member of the assurance team review the work of the senior personnel; or

•	Regular independent internal or external quality reviews of the engagement.