The accounting watchdog's inspection unit has once again criticised Deloitte over the practice of partners cross-selling non-audit services to audit clients. The Financial Reporting Council's inspection arm had raised the issue last year when it first began publishing its inspection reports. The Audit Inspection Unit said there were 'recurring issues relating to assessing and responding to risk and the safeguarding of the firm's objectivity and independence when providing non-audit services'. It said these issues should remain areas of focus for the firm until its required improvements have been met. The appraisals of audit directors and managers were largely found to be in accordance with the firm's policies, but a minority were found to go against these policies, with staff referring to cross-selling of non-audit services to audit clients. The AIU also took issue with the firm's ethical standards relating to its independence. 'In a minority of the audits we reviewed, we considered that audit teams failed to identify threats to the firm's objectivity and independence and apply appropriate safeguards when deciding to provide non-audit services,' the AIU said. The reports said overall Deloitte 'has appropriate policies and procedures in place for its size and the nature of its client base in the relevant areas which are subject to our review'. It said the firm 'had addressed the overall findings arising from our prior year inspection in a satisfactory manner'. In its response Deloitte said: 'We are pleased to respond to the Audit Inspection Unit's public report on its inspection of Deloitte in respect of the year ended 31 March 2009. 'We consider that the AIU's report provides a balanced view of the results of their inspection, and we are therefore pleased to record our agreement with its overall conclusions and findings.'