Αποτελέσματα Αναζήτησης
Cooling-off periods refer to mandated timeframes that prevent auditors from providing certain services to a client for a specified duration after having served in a significant role on an audit engagement.
30 Μαΐ 2022 · Cooling-Off Period. A period of time during which an accounting/ audit firm has to maintain the rule of independence when a member of its audit engagement team (senior or managing partner) quits his/ her position and commences employment with an auditee (an audit client).
A cooling-off period refers to a specified timeframe during which a buyer can cancel a contract without penalty or giving a reason. This consumer protection measure allows individuals to reconsider their purchase decisions, particularly in transactions where there is a potential for high-pressure sales tactics or impulse buying.
It requires a one-year cooling-off period before public companies may hire former auditors from their current audit firm in senior-level accounting positions, assuming that the company wishes to retain the same audit firm.
A two-year cooling off period is required before an audit engagement partner can act as a reviewer for their former client. The reviewer must be competent and capable of performing the role including understanding the legal and professional framework, firm policies relevant to the engagement and have an appropriate knowledge of the client industry.
We understand the need for a “cooling off” period for serving as EQR partner. However, the two-year requirement may be burdensome for smaller firms. If the “cooling off” period is retained, we would highly recommend a one-year period. that operate under all three sets of standards.
1 Αυγ 2022 · This paper examines the association between the length of the cooling-off period and audit quality: (1) when partners rotate back and (2) during the cooling-off period, ahead of an extension to the minimum cooling-off period requirement in Australia.
