When performing non-audit services for an audited entity, what must the auditor ensure?

When performing non-audit services for an audited entity, it is crucial for the auditor to ensure that management assumes all responsibilities associated with those services. This is important because when auditors provide non-audit services, it can create a potential threat to their independence and objectivity. By ensuring that management is responsible for the decisions stemming from the non-audit services, the auditor maintains a separation of roles which helps to safeguard their independence required for the audit process.

This principle is in line with professional guidelines that emphasize the need for clarity around the roles and responsibilities in order to avoid conflicts of interest. Management being responsible means they are accountable for the implementation of the findings and recommendations, preventing any appearance of the auditor being involved in managing the entity or its operations.

This requirement becomes even more significant when auditors provide services such as consulting or tax advisory, where the potential for independence risks increases. By clearly delineating responsibilities and ensuring that management is in control, auditors maintain integrity in the audit process while supporting the entity with advisory functions.