Companies Act 2014 section 1538

Threats to independence and other information to be recorded

Section 1538 requires statutory auditors and audit firms to document threats to their independence and the safeguards they have applied to address those threats.

• Auditors must record all significant threats to their independence in the audit working papers.
• The safeguards put in place to mitigate each identified threat must also be documented.
• This requirement applies equally to individual statutory auditors and to audit firms.
• The documentation forms part of the formal audit working papers for the engagement.