Deloitte
Accounting Research Tool
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Chapter 6 — Audit Considerations

6.4 Restriction on Company’s Employment of Former Audit Personnel

6.4 Restriction on Company’s Employment of Former Audit Personnel

The SEC’s independence rules also mandate a “cooling-off” period before a member or former member of the audit engagement team can begin working for the registrant in an accounting or financial reporting oversight role. Accordingly, management and the audit committee need to consider these requirements when determining whether to offer employment to a current or former partner, principal, shareholder, or employee of the entity’s auditors.