Ethical standards in brief
1.no over-familiarity with clients
2.limitations on loans of staff to clients
3.no client to constitute more than 10% of practice income
4.declarations of financial interests and family members' relationships with clients
5.audit partner rotation normally after 10 years, or five years for a listed company
6.sufficient staff on audit to comply with auditing and ethical standards, irrespective of fees
7.a partner responsible for firm's ethics * contingent fee arrangements not acceptable
8.fees for one year to be paid before next year's work begins
9.gifts from client banned unless insignificant
10.hospitality from client banned unless reasonable
11.non-audit services banned if incompatible with role of auditor
12.where auditor also conducts internal audit, no overlap of personnel and banned in some circumstances
13.auditor not to supply IT systems which include accounting function
14.ban on auditors providing valuation, actuarial valuation, litigation support and legal services in most circumstances
15.supply of tax advice and corporate finance services assessed on a case-by-case basis
16.restrictions on auditors conducting recruitment services, accounting services and due diligence.
CAclubindia
