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On the lecture notes (Sep2025 – June2026 version), P28, the notes stated that “A partner or employee of the firm serving as a director or officer of an audit client” has no safeguards.
However, can I not include that partner/employee within the audit team as a safeguard? This solution is listed on P29.
Thanks,
Gordon
Welcome to my forum! Short answer, no. If the Code states that a threat is so great that no safeguards can reduce it to an acceptable level, there are no suitable safeguards. An action is not a safeguard unless it is effective. In this case, exclusion from the audit does not overcome the threat to independence between the firm and an audit client.
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