- 5 Marks
AA – Aug 2022 – L2 – Q1a – Regulatory Framework and Audit Responsibilities
This question discusses why the Companies Act, 2019 (Act 992) prohibits accounting firms from offering non-audit services to audit clients.
Question
Accounting firms are in an excellent position to provide their clients with non-audit services such as consultancy, financial system design, review services, recruitment and valuation, among others, provided the necessary safeguards are in place. However, the Companies Act, 2019 (Act 992) prohibits the offering of such services to audit clients.
Required:
State FOUR (4) reasons for the prohibition of non-audit services to audit clients under the Companies Act, 2019 (Act 992).
Find Related Questions by Tags, levels, etc.
- Tags: Audit regulations, Auditor Independence, Companies Act, Non-Audit Services
- Level: Level 2
- Topic: Regulatory Framework and Audit Responsibilities
- Series: AUG 2022
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