Companies Act 2014 section 1550

Provision of certain prohibited non-audit services by auditors of public-interest entities

Section 1550 sets out the limited circumstances in which auditors of public-interest entities may provide certain non-audit services that would otherwise be prohibited, and the conditions that must be met before those services can be provided.

• Auditors of public-interest entities may provide specified tax services and valuation services to the audited entity, its EU holding undertaking, or its EU controlled undertakings
• These services may only be provided where they have no direct effect, or only an immaterial effect, on the audited financial statements, whether considered individually or in aggregate
• The estimated effect on the financial statements must be fully documented and explained in the additional report to the audit committee, and auditor independence requirements must be maintained
• The audit committee or the directors of the public-interest entity must issue guidelines on these non-audit services at such times as they consider appropriate