IWhy Would Audit Firms Provide Non-Assurance Services to Assurance Clients

question 43

Essay

i.Why would audit firms provide non-assurance services to assurance clients?
ii.List four types of non-assurance services.
iii.Identify safeguards which would eliminate or reduce the threat to independence for non-assurance services.

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Definitions:

Cancellation

Cancellation refers to the act of terminating or ending a contract, an agreement, or a service before it is completed or takes effect.

Initial Investment

The amount of money used to start a project, purchase an asset, or initiate an investment.

Capital

Financial assets or resources that individuals, companies, or governments use to fund their operations or invest.

Profits

The financial gain realized when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the activity.