Under the ACCA Code, for an audit client that is a public interest entity, for how many years may an individual act as the engagement partner before rotating off, and what is the cooling-off period?

Correct answer: C) Seven years; cooling-off period of five years

Explanation

For public interest entities the ACCA Code (based on the IESBA Code) limits key audit partners to a time-on period of seven cumulative years to address familiarity and self-interest threats. The engagement partner must then serve a cooling-off period of five consecutive years. Shorter cooling-off periods apply to the engagement quality reviewer (three years) and other key audit partners (two years), which is why two years is a common mistake.