- This topic has 3 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
Ive noticed some conflicting info in the F8 text books relating to maximum % of fees from one client.
Kaplan AND the model answer for June 2015 exam Q1 says that audit fee must not exceed 15% of gross practice income ( in both cases the scenario relates to a LISTED client)
However, Ive gone to Ethical Standard 4 (ES4) and found that the maximum should be 10% from a listed client…
and that 15% relates to max fees from a NON-listed entity…Please can you confirm which is correct- Thank you
See:
towards the bottom of P13:
As a public interest company, fee income should not represent more than 15% of gross
practice income for two consecutive years.Indeed – I also pointed out an instance where the 15% figure was quoted in a model ACCA answer – however, if you go to source documentation – i.e. ES4 Fees, Renumeration and Evaluation Policies ( an examinable document for F8 students)…. This clearly says
15% for unquoted
10% for listed companies.I’m not doubting it should be 15% but why is this not confirmed by the key source documents? Has it changed recently? Is 15% the international % perhaps and UK audit fees are the 10% limit?
I would really appreciate your clarification on this – also please view the links below before you answer. Many Thanks
Search for ‘fees’ section in https://www.accountingweb.co.uk/article/accountingwebcouk-guide-ethical-standards/517289
Original Source documentation – search for 10% :
https://www.frc.org.uk/Our-Work/Publications/APB/ES-4-(Revised)-Fees,-remuneration-and-evaluation-p.pdfEthical Standard 4 is issued by the Auditing Practices Board, part of the UK FRC. In the UK, auditors must follow that, but it is not a document listed by ACCA as relevant to F8.
Presumable, whilst ACCA had a UK F8 stream and and international exam, they would have expected the 10/15% fee limits for UK candidates.
Now there is only on stream and as indicated by their answers ACCA seems to expect only mention of 15% for public interest bodies.
If you are an ACCA student, I think you have spent enough time on this small area. If you are not an ACCA student, I don’t think you you should be taking up our time and deflecting us from helping F8 students.
- The topic ‘Auditor Fee Dependence ?’ is closed to new replies.