corporate governance

See page 13 of the notes .... "The chair is responsible for leadership of the board ...." and on page 14 of the notes .... "The board should establish an audit committee of independent NEDs." So on page 15 of the notes ... "the chair of the board should not be a member [of the audit committee]" An independent NED is independent of management - i.e. should not have been an employee of the company/group within the last 5 years, should not have a material business relationship with the company, should not have close family ties with advisers, directors or senior employees, should not have significant links with other directors, should not represent a significant shareholder and should not have served on the board for more than 9 years.

well understood ?. another question sir. what are the save gauds to self interest, familiarity and intimidation threats coursed by offering recruitment services to the client. Thanks.

If in doubt - avoid - then safeguards are irrelevant https://opentuition.com/topic/threat-on-audit-firm-recuritement-services If you do provide - take measures to ensure that management assumes responsibility for all decisions/actions https://opentuition.com/topic/ethics-assuming-management-responsibility It's not necessary to distinguish different safeguards for each category of threat - it would depend on the specific "recruitment service" whether the threat is self-interest and/or familiarity and/or intimidation. Having a separate department to provide "recruitment services" with staff completely distinct from the audit team is likely to be appropriate.

understood, Kim Thank u so much for providing the additional information.

You're welcome!