CAF-8 · Chapter 13 · Question 10 of 20
An audit partner has served a listed company client for 10 consecutive years. Under the ICAP code of ethics, what is a common safeguard for 'Long Association'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) The partner must be rotated off the engagement after a set period (e.g., 7 years for listed entities).
Explanation
Partner rotation is a mandatory safeguard for listed entities to prevent the 'familiarity threat' that arises from working with the same management for too long.
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