Indepedence Standard Board Standard No. 3, Employment with Audit Clients

Important Note: The Securities and Exchange Commission recently released a comprehensive revision to its auditor independence requirements (the Revision). The Revision contains provisions covering settlement of capital and retirement interests when former firm professionals join firm audit clients, which supercede the requirements described in paragraph 2.b.iv of this standard. Consequently, at the next ISB meeting, the ISB staff will recommend that the Board delete paragraph 2.b.iv of this standard. All other provisions of this standard remain in effect. The Revision can be found at the SEC’s website at www.sec.gov. Independence Standard No. 3 Employment with Audit Clients July 2000 ƒƒƒ Independence Standards Board Standard No. 3 Employment with Audit Clients July 2000 SUMMARY This standard describes safeguards that firms should implement when their professionals join firm audit clients. These safeguards are designed to assist in ensuring that: professionals who are broadly evaluating their career options will exercise an appropriate level of skepticism while performing audits prior to their departure from the firm; a former firm professional now employed by the client cannot circumvent the audit because of familiarity with its design, approach, or testing strategy; and the remaining members of the audit team maintain objectivity when evaluating the work and ...