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HI ALL,
The question is about the familiarity threat- the F8 BPP book state that ” IF AN INDIVIDUAL IS A KEY AUDIT PARTNER FOR 7 YEARS THEY MUST BE ROTATED OFF THE AUDIT FOR TWO YEARS.
one the questions from the past paper( GOOFY (Q4- PART/C – JUNE-2011) states that ” ACCA CODE OF CONDUCT RECOMMENDS THAT ENGAGEMENT PARTNERS ROTATE OF AN AUDIT AFTER 5 YEARS FOR LISTED & PUBLIC INTEREST COMPANIES.
PLEASE CONFIRM IF IT IS 5 OR 7 YEARS
The IESBA Code of Conduct, which ACCA has adopted 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.”
I seem to recall this might have changed so the ACCA answer was probably right when written.
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