Let's consider this from the perspective of the AICPA Code of Professional Conduct. In basic terms, nonattest services are not related to the performance of an attest engagement, where an attest engagement is one requiring independence within certain bodies of technical standards included in the overarching AICPA Professional Standards: specifically, standards related to auditing, accounting and review services, and attestation engagements require independence in certain circumstances. Much of the significance of the attest/nonattest distinction concerns a member's determination of independence because the performance of nonattest services for attest clients may create relationships or circumstances that could impair independence (i.e., “threats”). Threats arising from performing some nonattest services, viewed in isolation, may be sufficiently limited by adhering to certain general requirements described in the Code. However, the aggregate effect of performing multiple services of this type may require a more rigorous application of safeguards. Still, the effects of others always impair independence, such as the performance of appraisal, valuation, or actuarial services that entail a significant degree of subjectivity where the results of the service, individually or when combined with other such services, are material to the attest client's financial statements.
Content posted in October of 2019.
