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Non audit services to listed companies

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › Non audit services to listed companies

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Kim Smith.
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  • August 27, 2018 at 11:45 am #469634
    samymary
    Member
    • Topics: 8
    • Replies: 1
    • ☆

    What other services can auditors provide to listed clients apart from audit which are allowable?

    August 28, 2018 at 8:56 am #469770
    Kim Smith
    Keymaster
    • Topics: 133
    • Replies: 8301
    • ☆☆☆☆☆

    It’s not possible to provide a definite list – everything depends on the circumstance.
    Essentially anything that would mean the auditor assuming management responsibility is a “no no” (for any client).
    Administrative services of a routine nature are “ok” (with safeguards as necessary). But bookkeeping/payroll etc for a public interest entity (to use the full term rather than “listed”) is not allowed.
    Valuation services are “ok” if not material (with safeguards as necessary).

    I’m not going to list them all – essentially you have to consider whether safeguards can reduce any threat to independence to an acceptable level – if yes, it’s “ok”.

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