Does disclosure of nonattest services in the audit report matter?

The Sarbanes-Oxley Act of 2002 (SOX) prohibits independent auditors from providing eight specific categories of nonattest services for clients. In 2003, the AICPA revised the independence provisions of its Code of Professional Conduct related to nonattest services. For companies not subject to SOX, the AICPA continues to allow many services specifically prohibited under the act and the subsequent independence rules of the Public Company Accounting Oversight Board (PCAOB). Providing nonattest services for independent audit clients has been controversial for years. The SEC has historically recognized the potential value of disclosing nonattest services provided to audit clients, but it has never required the disclosures in the audit report. As state boards of accountancy and other regulatory authorities search for the most appropriate nonattest services regulations, disclosure in the auditor's report remains a viable middle ground between the current position of the AICPA and the provisions of SOX.