Act 1244 of 2005 established independence standards for school district auditors. These requirements were added at A.C.A. §6-20-1806. The statute prohibits school district auditors from providing certain non-audit services to school districts in which they serve as the auditor. The list of prohibited activities follows:
1. Accounting and bookkeeping services;
2. Financial information systems design and implementation;
3. Appraisal, valuation, and actuarial services;
4. Internal audit outsourcing services;
5. Management or human resources functions;
6. Broker or dealer, investment adviser, or investment banking services; and
7. Legal and expert services unrelated to the audit.
All questions reguarding this memo should be directed to Julie Kreth at 501/682-5128.