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ethics – contingent fee

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › ethics – contingent fee

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 22, 2014 at 5:22 pm #170174
    oandrienko
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    hi,
    please help to understand the issue of contingent fee –
    study materials are clear: contingent fee is not allowed
    but
    Code of ethics says:
    240.3 Contingent fees are widely used for certain types of non-assurance
    engagements.
    They may, however, create threats to compliance with the
    fundamental principles in certain circumstances. They may create a self-
    interest threat to objectivity. …

    so, contingent fee is not allowed?
    or

    240.3 Contingent fees are widely used ?

    thank you,

    OLga

    May 22, 2014 at 7:09 pm #170201
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Good point! they are generally not allowed ……. unless it’s normal practice for that type of assignment. But you have a good point about self-interest threat

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