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Hello Sir,
I want to know the time limit after whch the engagement partner for a listed company should be rotated off ?
Futher can ou please clear out the difference between engagement partner and other key audit partners as both have different time limits per bpp study text .
thank youits 7 years as per ias however individual country laws may vary as in pakistan its 5 years..
Engagment partner is the one who is handling the audit client.. Other key audit partners are the other partners of the firm not engaged in the subject client they may act as reviewer if the engagement risk is greater than normal.
There should also be a partner with overall responsibility for quality control policies and procedures.
There’s talk at the moment (this last 2 weeks or so) of having public companies putting their audit out to tender. The Competition Commission wanted this to happen every 5 years but this last week they have backed down to every 10 years. But after 5 years, the company should indicate in which year the audit tender invitations will take place.
Times, they are a-changing
Thankyou. the difference is now clear to me but can you please possiblytell me the exact time as in june 2011 q 4 as per the examiner’s answer the time limit is 5 years and per the bpp answer it’s 7 years so i just wonder if some change has taken place ? or both ar correct as in bpp it suggests 5 years for engagement partner , 7 years for other key audit artners and for the indivdual for engangement quality control review the limit is 5 years .
Furthermore I have one question from pilot paper as follow,
“NorthCee have been an audit client for five years and you have been audit manager for the past three years while the audit partner has remained unchanged.”
can you please expaiin the threat along with safeguard i.e time limit.
Thanks in anticipation 🙂IFAC’s 2013 IESBA (International Ethics Standards Board for Accountants) handbook states:
In respect of an audit of a public interest entity, an individual shall not be a key audit partner for more than seven years.
After such time, the individual shall not be a member of the engagement team or be a key audit partner for the client for two years.Old ACCA answers might not be updated
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