WEBVTT

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In some jurisdictions, auditors often

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provide supplemental non-audit services such as financial

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statement preparation, word processing, translation or other

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services in conjunction with statutory audits. In such

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instances, it’s crucial to evaluate these non-audit services

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separately from the statutory audit, so they can be

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appropriately evaluated for permissibility under the

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applicable independence standards.

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To facilitate this process, changes have been implemented in

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Sentinel. Two new Sentinel taxonomy codes have been created,

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one for financial statement preparation services, and the

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other for financial statement word processing and/or

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translation services. Sentinel requestors will be reminded

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of these typical supplemental services when submitting

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Sentinel requests for statutory audits. They will be asked

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whether additional services are being provided alongside the

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statutory audit, and if so, to select all relevant non-audit

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service taxonomy codes.

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Sentinel Lead Partners can then approve Sentinel requests

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once all services have been reviewed for permissibility and

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we have received necessary pre-approvals from the Audit

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Committee or Those Charged with Governance. When approving a

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request in Sentinel, it is helpful for the SLP to include

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reminders to the requestor in their approval comments.

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For financial statement preparation services to a subsidiary

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with the same year-end as the parent audit client, SLPs

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should include a reminder that services cannot start until

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the audit report for the parent company’s group financial

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statements has been issued. When a Sentinel request only

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identifies audit services, the SLP can indicate in their

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comments that approval is solely related to the submitted

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audit service. By adopting these practices within Sentinel,

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both requestors and reviewers can significantly reduce the

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risk of independence violations. This streamlined approval

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process also allows for quicker speed to market and improved

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client relationships.