APB has published a consultation paper on the provision of non-audit services by auditors to the listed companies that they audit. The consultation paper was published in response to a Treasury Select Committee report published in May 2009 (Banking Crisis: reforming corporate governance and pay in the City), which recommended that the provision of such services be prohibited in order to enhance investor confidence.
In particular, the APB is seeking views on whether:
- the provision of non-audit services by auditors to their audit clients has an impact on confidence in the independence of auditors, and whether such provision of non-audit service adversely affects audit quality; and
- further restrictions need to be placed on the provision of non-audit service that auditors can provide to the entitles that they audit.
Responses are requested by 29 January 2010. The consultation paper can be found at http://www.frc.org.uk/images/uploaded/documents/APB%20ES%20NAS%20Consultation%20(October%202009).pdf.
