Global independence system (GIS)

Avoiding financial interests in an assurance client, or its affiliate, prohibited by the independence rules is a key requirement in maintaining the independence of member firms and the client service engagement teams. As the number of listed entities audited by Grant Thornton member firms increases, the inherent risk of threats to independence arising from inadvertent violation of the financial interest rules becomes greater. To manage this risk a GIS solution, an automated tracking system, is used.

The GIS is designed to help individuals and member firms prevent and detect violations.

The GIS identifies entities in which financial interests are prohibited. This information is made available to all personnel in all member firms.

The GIS detects violations by providing an electronic method for recording financial holdings, and automating the identification and clearing of conflicts. Member firms, partners, client-facing managers, spouses, spousal equivalents and dependants are required to maintain a record of their financial interests in the GIS. The GIS provides a mechanism to assist the individual in determining, based on the facts and circumstances, whether it is appropriate to hold the financial interest. Where it is not appropriate to hold the financial interest it must be disposed of.

Monitoring of compliance with the GIS requirements is performed at both the member firm and global levels.