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Sir under external auditors -provision of non audit services
The AC should set and apply a formal policy specifying the types of non audit service:
-for which the use of the external auditor is preapproved (i.e. approval has been given in advance as a matter of policy,rather than the specific approval of an engagement being sought before it is contracted)
– from which the external auditor is excluded.
can explain tis two. thanks 🙂
AMELIA!!!
This is straight forward English!
‘The AC should set and apply a formal policy specifying the types of non audit service that are
1) appropriate for the external auditor to provide, and
2) not appropriate for the external auditor to provide
Sorry Sir i still dont get it for this part
1. for which the use of the external auditor is preapproved (i.e. approval has been given in advance as a matter of policy,rather than the specific approval of an engagement being
sought before it is contracted)The audit committee, at one of their quarterly meetings, decide upon a policy concerning the advisability and the appropriateness of the use of the external auditor for certain non-audit functions
They pass a resolution to that effect and the executive directors are made aware of the extent of this pre-approval
This is not an occasion when CEO approaches the Audit Committee and identifies a particular issue that has arisen and asks the committee whether it would be appropriate to ask the external auditors to carry out a specific project
Better?
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