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Should audit firms provide non-audit services to audit clients?

There is no EU-wide ban preventing auditors from offering non audit services to audit clients. According to Article 22 of the Directive, audit services should not be provided in cases where an objective, reasonable and informed third party would conclude that the statutory auditor s or audit firm s independence is compromised . Article 22 has so far been implemented in a very divergent manner across the EU.

European Commission (2010) Green Paper “ Audit Policy: Lessons from the Crisis, pp.11-12.

Discuss whether audit firms should be prohibited from providing non-audit services to audit clients.

The following criteria:

Assessment of current divergent regulations globally.
Analysis of advantages and disadvantages of prohibition.
Analysis of advantages and disadvantages of non-prohibition.

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