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Auditors' non audit fees
As a long term shareholder in RSA Insurance Group, I welcome the news that there will be a limit to non audit fees for the auditor. In my view the owners should be looking to make smaller these fees, as these payments reduce the credibility of the independent audit function.
It would also be helpful if auditors were required to regularly confirm that as shareholders formally appoint them, they should acknowledge their duty of care to owners and other stakeholders who may rely on the quality of their work for making their own business decisions.
In view of the many recent financial scandals, it would also be useful for auditors to confirm that the detection of fraud is one of their primary functions.
Are these unreasonable expectations for investors?
Since When?
The use of the expression "it will" means that this cap has not been the case before now despite presumably being seen as desirable; so the question arises; exactly who has been getting away with what in the past and for how long?
Auditors' non audit fees
Thanks for the Since When? feedback. I have just emailed the following to the Chairman:-
As a shareholder in RSA Insurance Group, I understand from an AccountingWeb article: RSA caps auditor fees from consulting services, that RSA may have been paying our auditors for consultancy services. If this is the case, could you give me the figures for the say the last 3 years on our audit fee and non-audit fees to our auditors? If you have time, could you reply to the expectations of this investor in his comments to this article?
I'll copy his reply on to this thread.