Non-Audit Service Essay

611 Words Apr 19th, 2015 3 Pages
Advantage and disadvantage of non-audit service (a) Understanding the audited company People believe that providing non-audit service can help auditors more understanding the audited company. “PCAOB can use for exam the implication of consulting agreement on the independence of audit function and issues,” said by Doty (TYSIAC, 2013). Through this, auditors can know about the business model, strategy of company, the risk which the company are or will facing and others. With this, the non-audit result can be more accurate and quality by the insight and professional skepticism of auditors (Young, What are the arguments in favor of auditors providing non-audit, 2013). The quality of business’s own system will also affect the …show more content…
In the same time, the non-audit result is based on the view that will threaten auditor independences, objective and professional skepticism. The higher the quality of the non-audit result, the lower the information risk. But if the auditors does not willing to take risk of the fees which they are receiving from non-audit services, so there may not arise the questions or challenges that are warranted. This will cause the non-audit result is not so accurate because of auditors do not willing to show out the negative side of their independences, objective and professional skepticism (Young, What are the arguments against auditors providing non-audit, 2013).

(c) Quality of information Provided information which is in a proper safeguard is one of the advantage. The quality of audit can be known without compromise the independence of auditors. In the IESBA Code of Ethics, audit firm is not allowed to evaluate and compensate the main audit partners for the sale of non-audit service. Without evaluate and compensate, the non-audit results is more accurate and reliable because of the main audit partners are getting the information which base on what they found (Young, What are the arguments in favor of auditors providing non-audit, 2013). The speed of reporting will affect the non-audit report. The external advisers are needed consultant by auditors and cause the reliable financial information which market rely will be delay.

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