Independence and Nonattest Services

Maintaining independence while providing nonattest services

The AICPA Code of Conduct requires that clients accept responsibility for nonattest services if attest services are also provided. Why? If the client has no one to assume responsibility (for the nonattest work), then the auditor may be performing management responsibilities and may possibly impair his independence.

The client should appoint someone with appropriate skill, knowledge, and experience (sometimes referred to as SKE) to oversee nonattest services provided by the public accounting firm. The CPA firm should document their consideration of independence — usually done in the enagagement letter. Document the nonattest services to be provided and the client personnel that will oversee the work.

AICPA independence

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