Independence and You

Professional Independence Requirements You Need to Understand

As you consider a career with EY (EY), we want to make sure you understand an important facet of working for
a firm that provides accounting and auditing services to clients. It is the concept of independence and it applies
to all our client service professionals - the people directly involved in service delivery to clients as well as selected
core business service personnel.
This document provides answers to questions frequently asked by candidates for employment. Please note where
local markets have more stringent rules, those more stringent requirements will have to be adhered to. Please do
not hesitate to contact your recruiter to clarify questions you may have.

Independence
requirements apply
to:
You
Your spouse or
spousal equivalents
Your family members
Apply to all who
provide professional
services to clients in a
capacity equivalent to
employees including
consultants,
contractors,
temporary
employees, people on
part-time work
arrangements and
interns

In respect of EYs
audit clients:
We
cannot invest in
financial securities,
including stocks, puts,
calls, bonds, and
options
cannot be a director,
officer, promoter,
underwriter, general
partner, voting
trustee, or otherwise
as management or an
employee

Usually
permissible
with audit
clients* if
transacted or
held under
normal
commercial
terms and
balances kept
current

Bank accounts including bank overdrafts

Brokerage account
Loans
Credit card facilities
Insurance policies, if policy offers the
ability to select investment options
Securities, bonds, puts, calls, options

Not permissible
with audit
clients* #

Mutual funds, money market funds

Unit Trusts, investment trust
Director, officer, trustee
Spouse or family member work in an
audit client

Consult if
If serving on boards of organisations

Independence means that client service professionals DQG

VHOHFWHGFRUHEXVLQHVVVHUYLFHVSHUVRQQHOmust be free, in fact and appearance,
of any personal,financial, or family-relatedinterest in EYs audit clients.
Our independence rules are formulateGto ensure that ourprofessionals DQG
SHUVRQQHOmaintain professional objectivity.

*Situations affecting SEC audit clients can involve

complex and judgmental analysis, and will require
consultation with your local Independence Team.
# may differ from market to market depending on
your rankDQGUROH. In some markets the prohibition is in
respect of all audit clients and in clients which you
are a covered person.
Whenever in doubt, please consult.

Glossary
Audit client: businesses and other organizations for which we perform audits, reviews, or
compilations and clients for which we provide other services under auditing standards.
Balances kept current: at least the monthly minimum payment must be paid by the monthly due
date
In some markets some requirements differ depending on whether one is a Covered Person
who is described as
someone who is part of the audit engagement team, the independent reviewer, and someone
who consults with the engagement team on technical or industry-specific issues; and
a managerial employee who had provided 10 or more hours of non-audit services during a
particular audit clients fiscal year or who expects to provide recurring non-audit services that will
involve 10 or more hours.
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Family Member:
Immediate family member includes wives, husbands, spousal equivalents and financially
dependent individuals (e.g., children, step children and other relatives) and any entity controlled
by you. Financially dependent individuals include any person who received more than half of
their support for the most recent fiscal year from a professional and/or his or her spouse (or
spousal equivalent). Parents, siblings or grandparents are not immediate family members
unless they are dependents.
Proscribed entities: Entities and certain of their affiliates (e.g., parent/subsidiary or
investor/investee) requiring independence by client serving professionals because of audit
engagements.

EY Independence Tools
When you join the firm, you will have access to tools to help you ensure you are free of any
personal, financial, or family-related interest in EYs audit clients

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