Some reasons a firm should be able to perform both audit and other assurance services for the same company could include: •Performing both the internal and external audit functions could help to eliminate errors that would lead to material misstatements. •Providing assistance to the company with regards to its accounting system could help to decrease time required during the audit. •Valuation services provided by the audit firm could help to reduce errors in financial instruments.
Reasons that a firm should not perform audit and other, separate functions could include: •The AICPA Code of Professional Conduct maintains that there must be independence in regards to attestation services. Performing both types of services would severely limit independence. •Having too much influence in a company by performing audit, internal audit, and management consulting services could be of great concern if legal action was, for some reason, brought against the company.