Recruitment services to an audit client
Recruitment services can create independence threats when an audit firm helps an audit client hire personnel, especially for influential positions. The firm must evaluate the applicable ethical requirements, including specific prohibitions and whether management retains its own responsibilities.
Worked example
A client asks its auditor to select a finance director; the firm checks the code and declines any prohibited management role or service.
Common mistake
Do not assume every recruitment service is permitted with disclosure or that all services are prohibited in every circumstance.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |