Fee dependence
Fee dependence arises when a firm or individual relies heavily on fees from one client or related clients, potentially creating self-interest or intimidation threats. The relevant ethical code sets particular evaluation, disclosure, safeguards and, in some cases, other requirements according to the circumstances and entity type.
Worked example
An audit client represents a large share of the firm’s revenue, so the firm assesses whether fee pressure threatens independence.
Common mistake
Do not assume a single universal percentage applies to all firms, entities, jurisdictions and code editions.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |