Relevant Ethical RequirementsRelevant Ethical Requirements

Relevant Ethical Requirements

1. The firm shall establish policies and procedures designed to provide it with reasonable assurance that the firm and its personnel comply with relevant ethical requirements. (Ref: Para. A7‑A9)

Independence

1. The firm shall establish policies and procedures designed to provide it with reasonable assurance that the firm, its personnel and, where applicable, others subject to independence requirements (including network firm personnel) maintain independence where required by relevant ethical requirements, laws and regulations. Such policies and procedures shall enable the firm to: (Ref: Para. A10‑Aus A10.1)
   1. Communicate its independence requirements to its personnel and, where applicable, others subject to them; and
   2. Identify threats to independence, evaluate whether the identified threats are at an acceptable level, and if not address them by eliminating the circumstances that create the threats, applying safeguards to reduce threats to an acceptable level, or withdrawing from the engagement, where withdrawal is possible under applicable law or regulation.

Aus 21.1 Where multiple threats to independence are identified, which individually might not be significant, the significance of those threats in aggregate and the safeguards applied or in place to eliminate some or all of the threats or reduce them to an acceptable level in aggregate, shall be evaluated.

1. Such policies and procedures shall require: (Ref: Para. A10‑Aus A10.1)
   1. Engagement partners to provide the firm with relevant information about client engagements, including the scope of services, to enable the firm to evaluate the overall impact, if any, on independence requirements;
   2. Personnel to promptly notify the firm of circumstances and relationships that create threats to independence so that appropriate action can be taken; and
   3. The accumulation and communication of relevant information to appropriate personnel so that:
      1. The firm and its personnel can readily determine whether they satisfy independence requirements;
      2. The firm can maintain and update its records relating to independence; and
      3. The firm can take appropriate action regarding identified threats to independence that are not at an acceptable level.
2. The firm shall establish policies and procedures designed to provide it with reasonable assurance that it is notified of breaches of independence requirements, and to enable it to take appropriate actions to resolve such situations. The policies and procedures shall include requirements for: (Ref: Para. A10‑Aus A10.1)