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Non-Audit Service

In: Business and Management

Submitted By YIERN
Words 607
Pages 3
Advantage and disadvantage of non-audit service (a) Understanding the audited company People believe that providing non-audit service can help auditors more understanding the audited company. “PCAOB can use for exam the implication of consulting agreement on the independence of audit function and issues,” said by Doty (TYSIAC, 2013). Through this, auditors can know about the business model, strategy of company, the risk which the company are or will facing and others. With this, the non-audit result can be more accurate and quality by the insight and professional skepticism of auditors (Young, What are the arguments in favor of auditors providing non-audit, 2013). The quality of business’s own system will also affect the result of non-audit report. Quality information which business depends on is delivering by quality of information technology and accounting system. When making decision, manager to refer and base on these information to avoid making wrong decision. This information is normally used by internal auditors as a best position to advice clients. This cause denied increasingly a vital source of people such as a multi-functional audit firm with the relevant wider skills by business (The provision of non-audit services to audit clients).

(b) Fees of non-audit report Shareholders can more easy and able to predict the extent of non-audit services which provided by auditors. For some year, the total amount of the non-audit fees which need to pay to auditors is needed to be disclosed. This requirement is written in the Companies Acts. With this act, shareholders can measure that whether the auditors deserve to get the payment base on the non-audit serves which provided (The provision of non-audit services to audit clients). In UK, company except small and medium sized need to disclose the non-audit fee start from 2008. The fee is

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