Lowballing
Lowballing is quoting a very low fee to obtain an engagement, potentially creating self-interest or pressure threats if the fee is insufficient for the required quality of work. A low fee is not automatically unethical; the firm must assess whether it can comply with professional, ethical and quality-management requirements.
Worked example
A firm bids substantially below competitors and reviews whether the proposed budget still allows an appropriately qualified team to obtain sufficient evidence.
Common mistake
Do not say every low quote is prohibited or that the fee alone proves audit quality will be inadequate.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |