Client offer and review partner 2944
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Hello I’m actually a student who is searching for information about two topics. :roll:
If a client extends a job offer then you are not allowed to perform an audit for a 12 month period with them. Are you still required to wait the 12 month period if you reject the offer?
Second, if you rotate off as an audit partner, are you allowed to be the current review partner instead?
I thank you for your time.
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The one year waiting period is only when an auditor accepts a position as CEO, CFO, CAO, Controller or equivalent. Keep in mind, the auditor could come on board in another position for one year (e.g., Director of Supply Chain or Director of Capital Projects), and then after one year, rotate into the Controller position. I’ve seen this happen, and this satisfies the 1 year waiting period.
For your second question, Sect. 203 of the Sarbanes-Oxley Act requires that after 5 years as either the lead partner or the concurring partner, one must begin a 5 year time out period. During this time out period, they cannot serve as either lead or concurring partner. So no, one cannot slide over to the concurring slot after serving 5 years as lead. There are also some 7 year rules for subsidiary partners and other specialists, but that’s the basics. Sect. 203 will give you more detail if you need it.
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Thank you very much. This will help immensely.
