FRC Ethical Standard: Audit committee pre-approval of non-audit services
How are audit committees to assess whether their policy for pre-approval of non-audit services (NAS) complies with the FRC revised Guidance on Audit Committees?
Issued: January 2017
Last reviewed: January 2017
Para. 73 of the FRC Guidance on Audit Committees (revised April 2016) states that ‘The audit committee should set and apply a formal policy specifying the types of non-audit service for which use of the external auditor is pre-approved. Such approval should only be in place for matters that are clearly trivial. Reporting of the use of non-audit services should include those subject to pre-approval.’