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Auditing & Assurance › Ethics & Independence

What are the rules on providing non-audit services to audit clients?

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Non-audit services can create self-review, advocacy, or self-interest threats. The Code and regulators (e.g., for public interest entities) prohibit certain services (bookkeeping, valuation affecting the statements, internal audit outsourcing of financial controls, management functions, certain tax and legal advocacy) and cap permissible non-audit fees. Any permitted service needs threat evaluation and safeguards, with governance approval.
Real-world example The firm declines to run the audit client's internal audit of financial controls to avoid a self-review threat.

Common follow-ups: Which services are typically prohibited? | Why cap non-audit fees for PIEs?

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All 18 Ethics & Independence questions