PracticeConsultingNon-audit services ‘conflict of interest’

Non-audit services 'conflict of interest'

Auditors providing non-audit work for the same company have an 'obvious' conflict of interest, according to the Department of Trade and Industry's report into the Maxwell affair.

Published today, the report says: ‘There has been an increasing tendency for auditors to perform more non-audit services to the company they audit: for many firms, this non-audit work has become a significant part of their work.’

It continues: ‘The conflicts of interest to which this give rise are obvious; the only issue is how this is best dealt with to maintain public confidence in the audit and to ensure that auditors are not only independent, but are perceived to be rigorous and robust in their audit of a company, or indeed any entity.’

It recommends: ‘In the light of the events surrounding Robert Maxwell’s companies and the pension funds, public perception and confidence should be seen as of central importance.’

Links

£10m Maxwell report slams auditors

Timeline: The Maxwell scandal

Report recommends ‘comfort letter’

Maxwell report calls for audit rotation

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