Improving disclosure of fees paid to audit firms
The extent to which an entity pays its audit firm for other services, in addition to the financial statement audit, is often seen as a key indicator of a possible threat to the auditor’s independence.
For this reason, information about fees paid to an audit firm for different types of services received, is a disclosure of high interest to many users of financial statements.
Stakeholders have expressed concerns about the quality and consistency of current disclosures about fees paid to audit or review firms for other services and so in response the External Reporting Board are proposing to introduce enhanced disclosure requirements.
The proposed amendments build on the existing disclosure requirements but introduce a new requirement for entities to disclose fees for services received from their audit or review firm using the following categories:
(a) Audit or review of the financial statements
(b) Other non-audit or review services:
(i) Audit or review related services
(ii) Other assurance services
(iii) Taxation services
(iv) Other services
We value your feedback on the proposed enhanced disclosures – in particular whether they will improve the consistency and transparency of information disclosed.
- For-profit entities: Consultation Document and accompanying Exposure Draft
- Public benefit entities: Consultation Document and accompanying Exposure Draft
Commenting on the Proposals
Comments are due by 30 September 2022.
Send us your comments—both formal and informal—using the form below, or by emailing firstname.lastname@example.org.
We intend on publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 1993 also applies.