CMA issues Circular on Non audit Services

The Capital Market Authority has recently  issued a circular identifying the non -audit  services the external auditor can render to the audited entity.

The circular identified three types of non-audit service the auditor can render including audit related services, taxation related  advisory services and investigation  of  matters arising from auditor’s findings or observations related to the audit of financial statements, embezzlements or mis-appropriation of company’s funds that does not compromise the independence of the auditor or poses any self-review threat.

The circular pointed out that the fees the auditor charges for non audit  services shall not exceed  25% of the average audit fee paid by the auditee in the past three years.

The moves comes to upgrade the efficiency of the capital market, protect the rights of shareholders and to boost the confidence of investors and market participants.