What it is
When a firm audits or reviews a client and also does nonattest work, the AICPA Code requires management to take responsibility for that work and requires the firm to evaluate and document threats to independence. The addendum puts both on paper next to the main letter.
It lists each nonattest service with deliverable, fee and timing, states the management responsibilities the client accepts, records the firm’s independence conclusion, and carries the evaluation summary for the file.
When to use it
- Adding bookkeeping, payroll, tax or financial statement preparation for an attest client.
- At annual engagement renewal when services change.
- Before the firm begins any new service for an attest client.
What’s inside
- Services table with description, fee and timing
- Five management responsibilities and a named oversight individual
- Independence paragraph and evaluation summary table
- Sign-off by both parties
Standard cited
This template follows ET 1.295. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
What must management do for a nonattest service?
Under ET 1.295 management must assume all management responsibilities, oversee the service with someone who has suitable skill, knowledge or experience, evaluate the adequacy and results, and accept responsibility for the results. The addendum lists each.
Does the firm still have to evaluate independence?
Yes. The addendum records the conclusion, but the evaluation of threats and safeguards must be done and documented in the file.
Can the addendum be used for tax services?
Yes. Tax compliance and advice for an attest client are nonattest services and follow the same framework.
Related templates
- Nonattest Services Independence Evaluation Form
- Nonattest Services Independence Evaluation Checklist
- Independence Threats and Safeguards Evaluation Worksheet
- Audit Engagement Letter (AU-C 210)
Last updated 11/05/2026. All free templates.