What action should be taken if a partner has served on a non-listed client engagement for longer than 10 years?

In the context of audit and assurance practice, regulatory frameworks often require that individuals in key roles, like audit partners, maintain independence and objectivity in their work. Serving on a non-listed client engagement for longer than 10 years can pose challenges to perceived independence, as long-term relationships may create familiarity that could potentially influence the audit judgement.

Documenting the reasoning for continued service is essential because it provides a clear rationale for why the partner has remained involved with the client for an extended period, which can help demonstrate compliance with independence requirements. This practice fosters transparency and accountability, ensuring that the firm is aware of the potential implications of the partner’s long tenure. The documentation can also serve as a reference in case of inquiries from regulatory bodies or during internal reviews.

While other options may seem beneficial, they do not adequately address the need for a documented justification. Automatically rotating to a new client may not be necessary or practical in every case, as some engagements might require longer tenures based on the specific circumstances. Similarly, ceasing all work on that client without proper reasoning does not align with audit best practices or regulatory guidelines. Informing the client about potential changes could be a part of the overall process but is not the primary action that addresses the independence concern. Thus