The existing APES 110 Code of Ethics for Professional Accountants has been updated because APESB has identified that this is a risk in the SMSF sector and “it is likely to be relevant in other sectors as well”.

The concerns relate to circumstances where auditors may be receiving multiple referrals from a single source, an APESB statement said.

“In certain circumstances another party or firm may refer multiple audit clients to a firm,” the new passage reads.

“In these circumstances, when the total fees in respect of multiple audit clients referred from one source represent a large proportion of the total fees of the firm expressing the audit opinions, the dependence on that source and concern about losing those clients creates a self-interest or intimidation threat.”

APESB said the significance of the threat should be evaluated and safeguards applied when necessary, to eliminate the threat or reduce it to an acceptable level.