Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p66
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 220359–223696

and regulations.

 1.          The Code defines independence as comprising both independence of mind and independence in appearance. Independence safeguards the ability to form an assurance conclusion without being affected by influences that might compromise that conclusion. Independence enhances the ability to act with integrity, to be objective and to maintain an attitude of professional scepticism. The Australian Independence Standards in the Code address various matters that may affect or influence the practitioner's independence, including:

           * Fees.

           * Gifts and hospitality.

           * Actual or threatened litigation.

           * Financial interests.

           * Loans and guarantees.

           * Business relationships.

           * Family and personal relationships.

           * Recent service with an assurance client.

           * Serving as a director or officer of an assurance client.

           * Employment with an assurance client.

           * Long association of personnel with an assurance client.

           * Provision of non-assurance services to an assurance client.

 1.          Professional requirements, or requirements in law or regulation, addressing compliance with relevant ethical requirements are at least as demanding as the provisions of the Code related to sustainability assurance engagements when they address all the matters referred to in paragraphs A58–A61 and impose obligations that achieve the aims of the requirements set out in the Code related to such engagements.

 2.          An appropriate authority could be a national standard setter, regulator, or oversight body with responsibility for audit, assurance or related relevant ethical requirements, or a designated accreditation organisation recognised by a public authority.

Considerations Specific to Public Sector Entities (Ref: Para. 26(a), 34)

 1.          Statutory measures may provide safeguards for the independence of public sector practitioners. However, public sector practitioners or firms carrying out public sector assurance engagements may, depending on the terms of the mandate in a particular jurisdiction, need to adapt their approach to promote compliance with paragraph 34. This may include, where the public sector mandate does not permit withdrawal from the engagement, disclosure through a public report of circumstances that have arisen that would, if they were in the private sector, lead the practitioner to withdraw.

Engagement Leader Responsibilities for Acceptance and Continuance (Ref: Para. 28)

 1.          Under ASQM 1, for acceptance and continuance decisions, the firm is required to make judgements about the firm's ability to perform the engagement in accordance with professional requirements and applicable legal and regulatory requirements. The engagement leader may use the information considered by the firm in this regard in determining whether the conclusions reached regarding the acceptance and continuance of client relationships and engagements are appropriate. If the engagement leader has concerns regarding the appropriateness of the conclusions reached, the engagement leader may discuss the basis for those conclusions with those involved in the acceptance and continuance process.

 2.          If the engagement leader is directly