Does the restriction on the independent accountant providing legal services to an audit client apply only to litigation services?
No. The Commission’s rule provides that an auditor’s and firm’s independence would be impaired if an auditor provides to its audit client a service for which the person providing the service must be admitted to practice before the courts of a U.S. jurisdiction. This standard includes all legal services. The rule does not apply only to appearance in court or solely to litigators. The only circumstances excluded by the rule are those in which local U.S. law allows certain limited activities without admission to the bar (generally confined to advice concerning the law of foreign jurisdictions). Additionally, as discussed in the adopting release, some firms may be providing legal services outside of the United States to registrants when those services are not precluded by local law and are routine and ministerial or relate to matters that are not material to the consolidated financial statements. Such services raise serious independence concerns under circumstances other than those meeting
Related Questions
- Does the restriction on the independent accountant providing legal services to an audit client apply only to litigation services?
- What is the scope of legal services that the client is retaining us for and are we identified in the contract?
- How should an attorney provide legal services to a client who appears to have less than full mental capacity?
