Companies Act 2014 section 1540

Non-intervention by certain persons in execution of audit

Section 1540 prohibits owners, shareholders and management of audit firms and their affiliated firms from interfering with the conduct of a statutory audit in a way that would compromise auditor independence.

• Owners and shareholders of a statutory audit firm must not intervene in a statutory audit in any way that jeopardises auditor independence or objectivity
• The same prohibition applies to owners and shareholders of any firm affiliated with the statutory audit firm
• Members of the administrative, management or supervisory bodies of the audit firm or any affiliated firm are equally bound by this restriction
• The protection is focused on safeguarding the independence and objectivity of the statutory auditor carrying out the audit on behalf of the firm