Chapter 9 - Ethics S3 Long association

Question 1

S3 - Long association

NON LISTED engagement partner

Answer 1

consider rotation after 10 years

if not - safeguards + document reasoning/disclose to shareholders

Question 2

S3 - Long association

LISTED engagement partner

Answer 2

5 on 5 off

audit committee can extend to 7 years

need to document and discuss with shareholders
expanded review of work by quality control

Question 3

S3 - Long association

NON listed becomes LISTED

Answer 3

if served 4, can do max 2 more

Question 4

S3 - Long association

LISTED Engagement Quality Control Review partner/Key partners

Answer 4

7 on

5 off (EQCR partner)
2 off (Key partner)

Question 5

S3 - Long association

LISTED other partners

Answer 5

review safeguard after 7 years

Question 6

What are the genuine threats?

Answer 6

Self interest

Self review

Familiarity

Question 7

What are the genuine safeguards?

Answer 7

Rotate partners

Engagement Quality control review by an independent partner (not previously involved)