|Independence & Ethics Review|
Where independence threats are other than clearly insignificant, safeguards need to be applied, or the action/relationship at issue should not be undertaken. Some of these safeguards are created by the profession, by legislation or by regulation. Others are created in the work environment, either by the organisation or the individual.
There are also a number of general prohibitions contained in Directive 2 of the Accountancy Profession Act and also in the Companies Act, such as accepting gifts or hospitality from an audit client, familial and personal relationships and close business relationship with the audit client, amongst others. These threats to independence cannot be mitigated by safeguards and outright prohibition is mandatory.
An independence review includes: