Are there any limits on the types of nonaudit services an external auditor may provide?
Yes. Beginning with fiscal year 2008, under FCA regulation § 621.31(a) external auditors engaged to conduct a Farm Credit institution’s audit can no longer provide services related to bookkeeping, financial information systems design, appraisal and valuation, or internal audit outsourcing. External auditors also cannot perform management or human resources functions, provide legal and expert services unrelated to an audit, or advocate an institution’s interest in litigation, regulatory, or administrative proceedings unrelated to the external audit. All other nonaudit services performed by the external auditor require the prior approval of the institution’s audit committee.
Related Questions
- Must a System institution’s audit committee pre-approve all nonaudit services or just those performed by the external auditor engaged to conduct the financial statement audit?
- Are there additional types of human resource and employee benefit services that impair an auditors independence?
- Are there any limits on the types of nonaudit services an external auditor may provide?
