The publication outlines how the principles underlying the European Commission’s Recommendation on auditor independence may be applied in practice. The Recommendation requires auditors to identify, consider and document potential threats to their independence and to detail the safeguards which have been put in place to eliminate those threats. The FEE publication also provides a comparison of the requirements of the EC Recommendation with that of the independence section of the International Federation of Accountants (IFAC) Code of Ethics.
The publication is intended to be a tool to help stakeholders understand how the framework approach works. It represents FEE’s latest contribution to the auditor independence debate.