Assume that in the previous situation, the “lead” partner had only been out one year (e.g., the 2003 audit) before the new rules became effective. Can the partner return to the engagement in 2004, and, if so, for how long?
In Question 2, the partner would have been able to return to the engagement in 2004 under the old rules. In Question 3, however, the partner would not have been able to return to the engagement in 2004 under the old rules. Accordingly, the partner would have to complete the requisite time out period specified under the new rules since, under the Commission’s transition provisions, prior service as the “lead” partner counts for purposes of determining the “lead” partner’s service on the engagement. Since the partner has been out for only one year, he or she would have to be out for an additional four years before returning to the engagement.
Related Questions
- Assume that in the previous situation, the "concurring" partner had only been out one year (e.g., the 2003 audit) before the new rules became effective. Can the partner return to the engagement in 2004, and, if so, for how long?
- Does the five year rotation of the lead audit partner apply to the period prior to the effective date of the Act?
- Can a previous year’s contracts and related bid documents be released to the public?
