CPDStore Ireland

This session offers a practical exploration of common challenges in maintaining auditor independence while delivering non-assurance services. Drawing on real-world scenarios and current guidance, the presentation will clarify boundaries and offer actionable insights for firms navigating ethical complexities. In small and medium sized firms, it is common that the audit client also requires additional non-assurance services from the professional accountant, and as regards taxation and preparation of financial statement while the audit is on-going or soon after it has been completed. One often finds that the client’s accountant does not have sufficient tax knowledge to prepare tax calculations and tax returns and also will find it difficult to prepare annual financial statements in compliance with the IFRS requirements. Such compliance is essential as company which is registered under the companies Act has to comply with IFRS in the compliance of its financial statement.

Similarly, it is convenient for the client to request the professional accountant to prepare the tax calculation as this is can easily be done during the course of the audit. 

These activities are not permitted to be attended to by a professional accountant who is a partner/director in the firm nor anybody who is employed by the firm.

It is not only the preparation of annual financial statements that is prohibited in terms of the Code of Ethics, but also all bookkeeping and accounting services are included under this heading. The most common request is for adjusting journal entries to be recorded by the auditors as and when they arise. Such activities will create a self-review threat which cannot be eliminated and therefor such activities are not permitted.

There are many other services often provided by professional accountants to audit clients but these are often prohibited by the Code and the professional accountant must have evaluated these services in terms of the Conceptual Framework Approach set out in the Code.

As artificial intelligence is very advanced and already in use by most professional accountants, I will address some of the requirements of the Code that accountants must follow for compliance purposes.

This session will be of particular interest to audit professionals and practitioners involved in service delivery to audit clients.