In short
Nonattest services are services other than attest engagements, such as tax preparation, bookkeeping or consulting, that a firm provides to an attest client. They are allowed only if the firm doesn't take on management responsibilities.
Key takeaways
- Management must accept responsibility for the results and designate someone with suitable skill, knowledge or experience to oversee the services.
- Performing management responsibilities, such as authorizing transactions or having custody of client assets, impairs independence.
- The firm documents its understanding with the client.
Where it's tested
AUD: Professional Ethics & Independence — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A CPA firm performs bookkeeping services for a nonissuer audit client. Independence may be maintained if: