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TRANSPARENCY REPORT | ETHICS: INTEGRITY, INDEPENDENCE AND OBJECTIVITY
Risk mitigation
Client acceptance and continuation procedures are extensive and intended
to identify any particular circumstances of a given client that might cause
an insuperable threat to auditor independence.
In such a situation, the firm will not take
on or continue the engagement. Before
engagement, all potential assignments are
subject to completion of an on-line Client and
Engagement Acceptance Programme, including
a Conflict Threat Assessment, designed to
identify any such threats in discharging a
particular engagement together with details
of any necessary safeguards required to be
applied. Details of the threats and safeguards
are reviewed and approved by the relevant
assurance partner prior to the acceptance and
commencement of the engagement.
Independence issues which relate to
transnational work, often where an office of
the RSM International network is involved, are
dealt with through online checking procedures,
so that the independence standards that
the firm sets for itself in the UK context are
replicated wherever the firm's business is
transacted internationally.
Small and medium-sized business clients
benefit from the availability of expertise across
the RSM group. However, their access to
non-audit services is subject to compliance
with the FRC Revised Ethical Standard 2019
(RES) and, in particular, the firm's insistence
that the remuneration of audit staff cannot
be determined by reference, even in part, to
non-audit fees provided by the firm to audit
clients. Contingent fees are not permitted for
any project where the firm is required to give
an independent opinion, as to do so would be
inconsistent with the RES.
Within each QA file review, checks are made
by QAD on identifying threats to auditor
independence and other conflicts of interest,
or other potential non-compliance with
the RES, and on the completeness of the
associated reporting to those charged with
governance in the Audit Plan and subsequent
Audit Findings Report. If a QA review finds an