Policy 1204: Non-Audit Services by University Auditors

Subject Area: Procurement/Disbursement
Responsible Office: Financial Services
Sponsor: Chief Financial Officer
Originally Issued: October 1980
Revised: July 2005, October 2007, March 2010
Refer Questions To: Jee He Kim, 773-834-5819

Purpose: To establish policy guidelines which address the use of the University external auditor and out-sourced internal audit service provider to perform non-audit services.

Policy

To maintain auditor independence and avoid even the appearance of conflicts of interest, it is the policy of the University not to engage the external auditor or out-sourced internal audit service provider for the following non-audit services:

• Bookkeeping or other services related to the accounting records or financial statements
• Financial system design and implementation
• Appraisal or valuation services, fairness opinions, or contribution-in-kind reports
• Actuarial services
• In the case of the external auditor, internal auditing outsourcing services
• Management or human resource functions
• Broker or dealer, investment adviser, or investment banking services
• Legal services and expert services unrelated to the audit

Other services, including tax services may be allowed with the approval of the Chief Financial Officer. Exceptions to this policy will be permitted only with pre-approval from the Audit Committee.