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what is the time period for rotation of engagement partners and key audit partners if the company is listed and what if the company is not listed??
in some questions it is given engagement partners should be rotated every five years and key audit partners every 7 years and in some places it is seven years for bothwhat if engagement partner is in association with the client for seven years? does they need to be rotated
fees from the client should not exceed 15% of the total fee income or 10% of the total fee income?
well 15% of total fee income doesn’t make any sense. It is, for listed companies once again, 10% of audit firm’s total income from all clients.
I am pasting contents from ACCA global to answer first part of your question.
“The APB issued a revised Ethical Standard 3: Long Association with the Audit Engagement in October 2009. This now enables audit committees to decide that a degree of flexibility, which allows the audit engagement partner to remain on the audit for an additional two years, is necessary to maintain audit quality as long as this extension is disclosed to shareholders. Whilst the normal audit rotation period remains five years with five years when he or she does not participate in the audit afterwards, additional guidance has been introduced to allow some flexibility over the timing of rotation.”In short, rule is 5 years but Audit committee can extend it to further 2 years if they think it should improve audit quality. A disclosure to share holders is needed though.
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