We strongly believe that investor confidence, and trust in audit would be enhanced by a prohibition on audit firms conducting non-audit work for the same company, and recommend that the Financial Reporting Council consult on this proposal at the earliest opportunity".
The APB's consultation paper provides: an overview of the non-audit services provided by auditors and the reasons why this can undermine auditor independence; a description of the approach taken by the APB with regard to auditor independence since 2004 and subsequent developments; and a summary of the approach taken in Europe, France and the USA.
Against this background, the APB seeks responses to several general questions including whether the provision of non-audit services to audit clients impacts confidence in the independence of auditors and, if so, which non-audit services are of concern. Views are also sought on the APB's current approach and whether change is needed through, for example, increased disclosure or the pre-approval by the board or audit committee of non-audit service engagements.
No comments:
Post a Comment