Familiarity (and trust): a Member Firm and/ or Member Auditor being too familiar with or trusting of
another person instead of seeking audit evidence.
Intimidation: a Member Firm and/ or Member Auditor having a perception of being coerced openly or
covertly, such as a threat to be replaced or reported to a supervisor.
Management of Independence
Social compliance audit services shall be undertaken independently. All audit ﬁrm personnel, who could
inﬂuence social compliance audit services, shall act independently and shall not allow commercial,
ﬁnancial or other pressures to compromise their independence.
The Member Firm shall have top management commitment to independence in social compliance
audit services. The Member Firm shall have a policy stating that it understands the importance of
independence in carrying out its social compliance audit services, manages conﬂicts of interest
and ensures the objectivity and eﬀectiveness of same. The Member Firm shall require all audit ﬁrm
personnel to reveal any situation which can present them or the Member Firm with a conﬂict of interest.
Member Firms shall record and use this information as input to identify threats to independence raised
by the activities of audit ﬁrm personnel or by their relationship with organizations that commission
The Member Firm shall have a process to:
Identify, analyze, evaluate, treat, monitor, and document the risks related to conﬂict of interest
arising from provision of social compliance audit services including any conﬂict which arises from its
relationships on an ongoing basis. Sources of threats to independence of the Member Firm can be
based on ownership, governance, management, personnel, shared resources, ﬁnances, contracts,
training, marketing and payment of a sales commission or other inducement for the referral of
Where there are threats to independence, the Member Firm shall document and demonstrate how it
eliminates or minimizes such threats and document any residual risk. The demonstration shall cover
all potential threats that are identiﬁed, whether they arise from within the Member Firm or from the
activities of other persons, bodies or organizations.
The Member Firm shall not conduct an audit when the Member Firm (including, but not limited to,
owners, managers, or auditors) has a business interest in the outcome of the audit (this includes, but is
not limited to, fees or other business contingent on the outcome of the audit).
The Member Firm shall not perform social compliance audit services at any facility where the Member
Firm, its owners or managers have provided social compliance consultancy within the preceding
two (2) years.
To ensure there is no conﬂict of interest, audit ﬁrm personnel who have provided consultancy,
including those acting in a managerial capacity, shall not be used by the Member Firm to take part in
a social compliance audit or other social compliance audit services if they have been involved in social
compliance consultancy for the client in the preceding two (2) years.
Independent Translator: An individual with language skills allowing for communication with workers or
management and the auditor. In all cases, the individual shall have no relationship with either the facility or
the local authorities and will have executed a non-disclosure agreement.
Member Auditor: An auditor who is enrolled and in good standing with APSCA in either an ASCA or
Member Firm: An audit ﬁrm that is a member of APSCA and provides Social Compliance Audit services.
Members: Member Firms and Member Auditors.
Owners: Those with an ownership interest as follows:
Public Company: any level of ownership requiring legal disclosure under applicable securities laws
Private Company: any level of ownership
Version & Date
APSCA Glossary of Terms D-031
Version 4 – May 2022
Version 3 - January 2021
This document is no longer version controlled once printed.
Page 3 of 4
APSCA President & CEO
APSCA Executive Board