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Hi Sir,
Hope you are doing well.
Following is the extract of Code of Ethics: Cooling-off Period:
1)If the individual acted as the engagement partner for seven cumulative years, the cooling-off period shall be five consecutive years.
2) Where the individual has been appointed as responsible for the engagement quality control review and has acted in that capacity for seven cumulative years, the cooling-off period shall be three consecutive years.
3) If the individual has acted as a key audit partner other than in the capacities set out in paragraphs R540.11 and R540.12 for seven cumulative years, the cooling-off period shall be two consecutive years.I am stuck in difference between engagement partner and key audit partner as they have different cooling off period.
Please let me know if you can provide some examples from audit practice as far as I know they should be same person.
These are the definitions from the code:
Engagement partner – The partner responsible for the engagement and its performance, and for the report that is issued on behalf of the firm, and who, where required, has the appropriate authority from a professional, legal or regulatory body.
Key audit partner – The engagement partner, the individual responsible for the
engagement quality control review, and OTHER AUDIT PARTNERS, IF ANY, on the engagement team who make key decisions or judgments on significant matters with respect to the audit of the financial statements on which the firm will express an opinion.
Depending upon the circumstances and the role of the individuals on the audit, “other audit partners” might include, for example, audit partners responsible for significant subsidiaries or divisions.
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