Awan Hammad

    Hi Paul

    The guides do not appear to easily spell out who is considered an immediate family member or a close family member.

    My initial view is that a spouse’s first cousin would not be considered to be a close family member and on that basis you should not be precluded from doing the audit.

    The Independence Guide appears to refer to close family member as being a parent, child or sibling.

    However, as a first cousin of a spouse is still considered to be a relative the auditor should consider perceived independence may be breached if they accept the appointment. On that basis preferred approach may be to not accept the appointment due to the close relationship.

    The Independence Guide uses an example of a partner’s brother in law at 7.11 and in that example it states it would be difficult to reduce independence threats to an acceptable level.

    The APES 110 Code does also consider the closeness of the relationship.

    It would be great to get other forum members views re how they would approach this query.

    The Auditors Institute


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