What it is
A firm that audits or reviews a client and also keeps its books, prepares its tax return or runs its payroll must show that independence is intact. ET 1.295 sets general requirements for every nonattest service: management must oversee the work, accept responsibility and have a person with suitable skill, knowledge or experience.
This checklist records those requirements, the written understanding with the client and the threat evaluation under ET 1.210. Individual services (bookkeeping, payroll, IT, internal audit, valuation) have their own interpretations in the Code, and the Yellow Book adds rules where it applies. Not an AICPA product.
When to use it
- Before taking on any nonattest service for an attest client.
- Each year for ongoing services such as bookkeeping and tax.
- When the scope of a service grows.
What’s inside
- Description of the service and prohibited-service check
- Management’s role and the designated individual
- Written understanding of terms
- Threat evaluation and safeguards
- Documentation, approval and reevaluation
Standard cited
This template follows ET 1.295 / ET 1.210. 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
Who is a person with suitable skill, knowledge or experience?
Someone at the client who can understand the service and evaluate its results. They do not need to be able to perform the service. Document the person’s role and why they qualify.
Is a written understanding required?
Yes. The documentation requirements in ET 1.295.050 call for the firm to establish and document in writing its understanding with the client about the objectives, the services, the responsibilities of each party and the limits. An engagement letter works.
Does Yellow Book change the answer?
It can. GAGAS has its own rules on nonaudit services that may be stricter than the AICPA Code. Apply the stricter rule on a government audit.
Related templates
- Engagement Independence Confirmation (AICPA Code ET 1.200)
- Firm Independence Compliance Checklist (Annual)
- Compilation Engagement Checklist (AR-C 80)
- Preparation Engagement Letter (AR-C 70)
Last updated 11/05/2026. All free templates.