The auditor’s independence

The principle that a director is independent when he does not have any personal or professional relationship with the company and its management likely to influence his judgment and lead to decisions that would not be in the interest of the company is particularly the case for the auditor.

Relative proportion of audit fees to the total fees paid to the auditor

The audit firm must report its fees only for the mandate not exceeding 10% of the total revenues in order to avoid personal and professional relationships likely to influence its judgment and lead to decisions that would not be in the interest of the organization.

Maximum term of office

An audit firm which has more than 10 years in office, is able to provide a significant knowledge of the history of the company, a relevant experience, and depth in the activities of the organization. However, we believe that we should set a duration of 10 years in office to consider the audit firm as related to the board in order to avoid the dynamics of an “old boys club”.

Rotation of the principal partner

The rotation of the senior partner of an audit firm should be done every 5 years in order to avoid the dynamics of an “old boys club”.

Damage to reputation

A reputation tainted by the involvement in a scandal or an unacceptable performance in another organization.
Conflict of interest or relationship with the active director
An auditor is independent when he does not have any personal or professional relationship with the company and its management likely to influence his judgment and lead to decisions that would not be in the interest of the company.