Companies Act 2014 section 1533

Requirement for independence - general

Section 1533 sets out the general requirement for statutory auditors and audit firms to remain independent of the entity they are auditing, and to avoid conflicts of interest or relationships that could compromise that independence.

• Statutory auditors, audit firms, and anyone who can directly or indirectly influence the audit outcome must be independent of, and not involved in the decision-making of, the audited entity throughout the audit period.
• Auditors and audit firms must take all reasonable steps to ensure their independence is not affected by any existing or potential conflict of interest, or by any business or other direct or indirect relationship.
• These independence requirements extend beyond the auditor or firm itself to their wider network, managers, employees, and any person or entity linked to them by control, as well as the staff of those linked persons.
• The independence obligations apply at a minimum during both the financial period covered by the statements being audited and the period during which the audit work is actually carried out.

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