lict of interest arises. In the United States the Sarbanes-Oxley Act has introduced a 'cooling off period' for any person who has participated in audit work for a company, before they can be employed and work as a CEO, Controller, CFO, Chief Accounting Officer or as any person equivalent to these mentioned positions. (Lee, 2002) The cooling off period lasts for one year following the date of the commencement of the audit. (AICPA, 2004)
             Similarly, Clerp 9 imposes restrictions on specific employment and financial relationships between auditors and their clients. There are a few restrictions put onto particular person in relation to joining a previous audited company as an officer, director or any senior management with the client. There is a waiting period of four years which will apply to partners of an audit firm or directors of an audit company who were directly involved in the audit of the audited body. This four year period also applies to a professional member of an audit team in relation to the audit of the audited body. While only a two year period will apply to partners of an audit firm or directors of an audit client not directly involved in the audit of the audited body. This two year period will also apply to retired auditors from becoming directors of their former clients. (Allens Arthur Robinson, 2003)
             Another prohibition, which might be included, is on any more than one former partner of an audit firm, at anytime, from being a director of or taking a senior management position with an audited body, regardless of the time period elapsed. (Allens Arthur Robinson, 2003)
             For those companies who are involved with both the US and Australia, through subsidiaries or publicly traded companies in different country origins, it is recommended that they conform to Clerp 9 rather than the Sarbanes-Oxley Act. Reasons for this being that Clerp 9 provides more restrictions, so therefore a two or four year period (which eve...