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d by the profession, legislation or regulation, such as education, professional standards, monitoring and disciplinary processes, and inspections and review;
Safeguards within the audit client, including competent employees and robust corporate governance structures; and
Safeguards within the audit firm, including policies and procedures to implement and monitor independence and quality control
The principles and rules set out in CPC F.1 allow an auditor to evaluate any circumstance and to determined procedures and actions necessary to avoid or resolve those circumstances that pose threats or risks to objectivity.
4) Sarbanes-Oxley Act 2002(背)
采取了三项举措： it restricts greatly the ability of auditors to provide non-audit services, mandates audit partner rotation and strengthens the role of the audit committee.
总体要求：it requires management to provide a report on the effectiveness of internal control over financial reporting and the auditor to provide assurance that the report is appropriate.
5) Joint Committee of Public Accounts and Audit: 要求CEO和CFO交年报给ASIC关于公司怎么坚持INDEPENDENCE。
6) HIH Royal Commission: 建议：increase disclosure of the types of non-audit services and their fees, increased restrictions on employment relationships between an auditor and the audit client, and extending auditor rotation requirements to senior audit personnel.
7) Corporate Law Economic Reform Program
b )Discussion question related to different arguments about ‘independence’. (8 分)
※THREE Major threats to auditor independence:
1. Auditor employment relationships
1) CPC F.1 prohibits auditors being employed by a client, or serving as an officer of a client, as it creates too great a self –interest, self –review, familiarity and intimidation treat to independence.
CASE应用：in Aus, in the HIH Insurance case, it was noted that the Chairman and Finance Director were former partners of HIH’s audit firm, Arthur Andersen. 而且, 另一个director, 也是 former partners of AA, was previously the auditor of FAI Insurance before it became a subsidiary of HIH Insurance.
In relation to the treat to independence when a retired audit partner joins the board of an audit client, the Ramsay Report recommended that there be a mandatory period of two years following resignation from the audit firm before a former partner of an audit firm who is directly involved in the audit of a client can become a director of the client.
2. Financial and business relationships
(1) Investments in audit clients,
以下情况视为NOT—INDEPENDENCE：The audit firm, any member of the audit engagement team, or any of his or her immediate family has any direct financial investment/ material financial interest in the client.
(2) Loans to and from audit clients
上述关系双方不能存在借贷关系，FOR they create too great a self –interest threat.
CPC F.1.28 prohibits loans to or from clients
(3) Business relationships
CPC F.1 points out that a close business relationship between the auditor and the client will involve a commercial or common financial interest and may create self-interest and intimidation threats.
(4) Goods and services from clients
Gifts or hospitality beyond normal social courtesies should not be accepted, as they would create unacceptable self-interest and familiarity threats
3. Provision of non-audit services by auditors
总括：
The influence of non-audit fees on audit has become an important issue following recent corporate collapse, an