A top-level committee to evaluate the role of auditors has suggested that accounting firms not take up any non-audit services and also opt for compulsory rotation every three years.
The committee comprising members from the Securities & Exchange Commission (SEC), Sri Lanka Accounting & Auditing Standards Monitoring Board, the Central Bank, the Auditor Generals Dept., bankers and auditing professionals, have put out a draft set of guidelines to strengthen the effectiveness of the auditors and the audit process of listed companies.rn
rnThe draft report suggests that Accounting Firms adopt the recommendations made in the Code of Ethics for Professional Accountants of the International Federation of Accountants when dealing with self-interest, self-review, advocacy and long-standing association with their clients.rn
rnThe limit on other non-auditing services also include: Financial information systems design and implementation; Project or investment appraisal, valuation services; Management functions o