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Hi Mike,
I just want to make sure my facts are right.Key partners should be rotated every 7 years
Audit partners should be rotated every 5 years and can return after 2 years
Audit team members should be rotated every 7 years and can come back after 2 years
Is there anything else i should know regarding this area ?And can key partners come back ?
Another query as well Mr.Mike. When it says that total fees shouldnt exceed more than 15% of total income for two consecutive years does it mean the total for year 1 and year 2 or separately in year 1 if its more than 15% its going to be an issue only if in year 2 also the fee is more than 15%
In answer to your second point, you’re correct. The first year only becomes an issue when we’re part way through the second year and we realise that fee income is heading towards an amount in excess of 15%
With reference to rotation, that really should no longer be an issue because the principles of corporate governance require firms to rotate off the assignment before the partner rotation kicks in
Apart from that, rotation is a great idea anyway and should be adopted voluntarily
OK?
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