| Recommendation 6.7
The work of all RCAs should be subject to periodic quality reviews conducted by authorised accounting bodies.
Recommendation 6.8
Subject to privacy considerations, the Law should provide that all files in respect of audits that have been undertaken by an RCA must be available for inspection as part of a quality review
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7. APPOINTMENT AND INDEPENDENCE OF AUDITORS
701. This chapter examines the issues associated with the appointment of a person (or firm) as auditor of a company and the subsequent independence of the auditor from the company and its management.
702. Independence for a professional is a state of mind. No specific restrictions or requirements can achieve independence. However, some specifications can contribute significantly towards the maintenance of independence of mind, as well as the appearance of independence. In practice, independence has three main elements:
(a) adequacy of remuneration (to ensure that the professional is less likely to be placed under financial pressure);
(b) adequacy or security of tenure (to ensure that the professional has some degree of protection in order to be able to form an independent opinion); and
(c) freedom from undue influence in making decisions.
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