SA 200: Independence - Ethical Requirements#
Fundamental Principles#
1. Integrity
- Be straightforward and honest
- Not be associated with false or misleading information
2. Objectivity
- Not allow bias to override professional judgment
- Avoid conflicts of interest
3. Professional Competence and Due Care
- Maintain professional knowledge and skills
- Act in accordance with applicable technical standards
4. Confidentiality
- Not disclose information to third parties
- Use information only for intended purpose
5. Professional Behavior
- Comply with relevant laws and regulations
- Not bring profession into disrepute
Independence Requirements#
Financial Interests
- Not have direct/indirect financial interest in client
- Not hold shares or securities of client
Employment Relationships
- Not accept employment with audit client
- No family members in key positions
Non-Audit Services
- Cannot provide certain non-audit services to listed/public interest entities
- Other non-audit services need pre-approval
Rotation Requirements#
- Audit partner rotation after 5 years (for listed companies)
- Cooling off period of 2 years
- Senior auditor rotation after 7 years
Documentation#
- Independence confirmations
- Communication with those charged with governance
- Records of non-audit services provided