ethical issues- Horti co.

For any partner to also be a director of an audit client the threat to independence would be SO GREAT that NO safeguards would be sufficient to reduce the threat to an acceptable level. As a NED on the audit committee, he would have responsibilities for the rigour/integrity of the financial statements/financial reporting processes (page 15 of the notes) - the EQCR includes review of financial statements as well as the auditor's report thereon (page 110).

Because he will still be a partner in the firm that audits the client. As I wrote "For ANY partner to also be a director ..." The audit firm cannot be SEEN to be independent if ANY partner sits on the board of a client.