Ethical Standards are successful, says the APB

News Article - 01 November 2007
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The Auditing Practices Board (APB) has announced that the Ethical Standards for Auditors (ESs) are working and continue to be of a high standard.

A review of the ESs - which were issued in 2004 - has revealed that threats to auditor independence have decreased through a number of developments.

There has been a reduction in auditors providing non-audit services to entities and an active involvement of audit committees considering auditor independence.

However, the APB is organising a consultation over whether it should follow UK or current international practice by rotating the audit engagement partner of a listed company after five or seven years.

"While the APB believes that the standards on auditor objectivity and independence have proved effective over the last three years, this consultation is an important opportunity for stakeholders to communicate their views to us," says chairman of APB Richard Fleck.

Previous research by the APB into ESs revealed that of all the companies reporting a change in the relationship with their auditing partner, 35 per cent mentioned rotating partners as a factor.

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