Fees overdue
Overdue fees can create a self-interest threat if a firm becomes financially exposed to a client or if the balance resembles a loan. The firm assesses the facts and applicable independence rules before continuing work or issuing a report.
Worked example
A client has not paid the prior year’s audit fee and asks the same firm to start the current audit.
Common mistake
Do not assume every overdue balance automatically has the same effect; check applicable requirements and safeguards.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |