Prohibited non-audit services & cooling-off period
Prohibited non-audit services
The Belgian statutory auditor and his/her professional partners or network worldwide are not permitted to perform the following prohibited non-audit services during the audit appointment term at the audited company (Belgian public and non-public entities), its Belgian parent and its Belgian subsidiaries.
Additionally, the Belgian statutory auditor and his/her professional partners or network in Belgium are not permitted to perform the following prohibited non-audit services during the audit appointment term at foreign subsidiaries of the audited (Belgian) company.
The prohibited services are:
- Making management decisions or participating in the management decision making process
- Giving assistance or participating in the preparation of the accounting records and/or the statutory/consolidated annual accounts or keeping the accounting records.
- Being responsible for the design, development, implementation and management of financial information technology systems (FITS).
- Providing valuation services of assets and liabilities included in the annual accounts or the consolidated financial statements when these assets or liabilities are material to the audited financial statements.
- Participating in the audit client's internal audit function.
- Acting for, or representing the client in the resolution of fiscal or other litigation.
- Intervening in the recruiting process of members of a governing body or of management.
Cooling-off period
The statutory auditor, the statutory audit firm or the audit partner representing the audit firm can:
- Till two years after the end of the audit mandate
- Not accept a mandate as director or any other function in:
- The audited company;
- Its parent, subsidiaries or sister companies;
- Natural and legal persons linked with the companies mentioned above.
Prohibited services provided two years before the appointment as statutory auditor (standard of independence applicable as from 29 June 2008).
An auditor may not accept a statutory audit appointment if the auditor or its professional partners or network in Belgium have, during two years before the date of the appointment:
- Assisted or participated in keeping the accounts or the preparation of the statutory / consolidated annual accounts of the company concerned, its Belgian parent or its important Belgian or foreign subsidiaries;
- Assisted in the recruitment of persons for company bodies, the CEO or CFO of the company concerned, its Belgian parent or its important Belgian or foreign subsidiaries.
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