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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › percentage basis fee
maam in bibi &co why is there any problem with percentage basis fee arrangement for corporate finance services? Because the std states that contingent payments are allowed for non-audit services as long as the fees is not significant
Bibi & Co? I think it depends what the corporate finance service is.
Since fee income is a matter of self-interest, perhaps a % based on the outcome increases the self-interest threat – and therefore the fee should rather be fixed.