Audit fee
An audit fee is the amount charged for an audit engagement, determined by the agreed terms and the work and resources required. The firm considers ethical and quality implications, including whether the fee permits sufficient competent work and whether relative fee size creates an independence threat.
Worked example
A firm estimates the time and specialist expertise needed for a complex group audit before submitting a fee proposal.
Common mistake
A low fee is not automatically prohibited, but insufficient resources or prohibited contingent fees can create serious compliance problems.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |