This helpsheet has been issued by ICAEW’s Technical Advisory Service to help ICAEW members interpret the definition of partner in the FRC Ethical Standard.

Members may also wish to refer to the following related helpsheet and guidance:

• Rotation of audit partners and staff
• FRC Ethical Standard
• FRC Technical Advisory Group – Rolling record of actions arising (FRC Rolling Record)

The FRC Glossary of Terms – Ethics and auditing defines ‘partner’ as:

An individual with authority to bind the firm with respect to the performance of a professional services engagement.

An individual does not need to have the title of partner to fall within this definition, although the FRC Rolling Record (September 2016 meeting) confirms that for the definition to apply to an individual, they should have the authority to bind the firm without further reference to another individual in that firm.

For the purposes of partner rotation, a firm must also consider whether an individual falls under the definition of engagement partner, key partner involved in the engagement or key audit partner. Further discussion on partner rotation is available in the helpsheet Rotation of audit partners and staff.

ICAEW members, affiliates, ICAEW students and staff in eligible firms with member firm access can discuss their specific situation with the Ethics Advisory Service on +44 (0)1908 248 250 or via webchat.