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Hi mike,
If rotation required, is audit firm can still provide non-audit service to their audit client? Or there will be prohibit.
Since the purpose of audit firm is diminish familarity threat and independent.Thanks
Good question – to which I am not sure of the answer 🙁 yet!
Maybe a better one (certainly more up to date) would be “What’s the limit on fees for non-audit work that an audit firm can collect from any client or group of clients?” and the answer to that was announced just last week (maybe even early this week) is 70% of the audit fee
From my understanding, if the audit fee is $100, then the cap for non-audit work would be $70
The effect of this is that some firms are already looking to change their strategy with reference to the issue of “Do we audit and accept the 70% limit, or do we give up the audit and be free from the 70% cap when we provide non-audit services?”
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