Tuesday, April 15, 2014

Restricted Services (Section 144)


  • Transition Period: 1 year
  • Auditors are prohibited from rendering following non-audit services, directly & indirectly:
  • accounting and book keeping services;
  • internal audit;
  • design and implementation of any financial information system;
  • actuarial services;
  • investment advisory services;
  • investment banking services;
  • rendering of outsourced financial services; and
  • management services
  • Other restricted services may be further prescribed.

For Prohibited Services: “Directly or indirectly” shall include rendering of services by the auditor –

  • Where auditor is an individual - Either himself or through his relative or any other person connected or associated with such individual or through any other entity, whatsoever, in which such individual has significant influence or control, or whose name or trade mark or brand is used by such individual
  • Where auditor is a firm – Either itself or through any of its partners or through its parent, subsidiary or associate entity or through any other entity,  whatsoever, in which the firm or any partner of the firm has significant influence or control, or whose name or trade mark or brand is used by the firm or any of its partners.

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