APB rules receive warm welcome
Tough regulations announced today by the Auditing Practices Board have received a ringing endorsement from the English ICA.
Institute president Graham Ward, said: ‘We welcome the APB call for auditors to formally demonstrate their independence in accordance with audit regulations. We also welcome the APB’s proposals to formalise auditors’ dialogue with audit committees in respect of their independence.’
The first Statement of Auditing Standards (SAS), entitled Quality Control for Audit Work, specifies that before accepting a new audit, firms should consider whether there are threats to their independence and objectivity, and, if so, ensure that adequate safeguards are established.
The second SAS, Communication with Directors, states that auditors should inform the audit committee in writing of any factors that might bear on the audit firm’s independence and objectivity, and ensure that full independence is maintained.