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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.Ethical 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.
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