Serving as a Director or Officer of an Audit Client
Introduction
523.1 Firms are required to comply with the fundamental principles, be independent and apply the conceptual framework set out in Section 120 to identify, evaluate and address threats to independence. 523.2 Serving as a director or officer of an audit client creates self- review and self-interest threats. This section sets out specific requirements and application material relevant to applying the conceptual framework in such circumstances.
Requirements and Application Material
Service as Director or Officer
R523.3
A partner or employee of the firm or a network firm shall not serve as a director or officer of an audit client of the firm. Further, as per Section 141(3) (b) of the Companies Act, 2013, an officer or employee of the company or a person who is a partner, or who is in the employment, of an officer or employee of the company, shall not be eligible for appointment as an auditor of a company.
Service as Company Secretary
R523.4
A partner or employee of the firm or a network firm shall not serve as Company Secretary for an audit client of the firm, unless: