Firms should think twice before entering into agreements which "stretch the internal/external audit boundary", the Financial Reporting Council (FRC) has warned.
The organisation has written to the larger UK audit firms to remind them that an investigation is underway to decide if they should be allowed to continue offering additional services to their clients.
According to Paul Boyle, chief executive of the FRC, this means that auditors and the firms they work for should be cautious if they are considering stretching the internal/external audit boundary.
"It could prove to be inconvenient and/or costly to change such arrangements should the outcome of the FRC's work be that the ethical standards are changed in a way that affects the provision of such services," he said.
One of the FRC's operating bodies, the Auditing Practice Board, is currently seeking the views of stakeholders on the provision of additional services to clients.
Recently, the FRC warned that the UK's audit market is still too reliant on the Big 4 companies.
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