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ACCA rule states that the recurring fees paid by one client or a related group of clients should’nt exceed 15% of the income of the audit practice (10% if the client is listed).if a lst co makes up more than 10% of a firms income they should not accept that client (15% for non listed co’s)
is these statements true?please clarify.why 15% for unlisted is it for listed?I do not know where you are taking this information from. Page 21 of the notes says that there is a 15% rule for public interest entities (e.g. listed companies) – there is no rule for non-PIE clients. The rule is not a prohibition. Fees should be discussed with and disclosed to TCWG (e.g. audit committee) and safeguards include pre- or post-issuance engagement quality control reviews (i.e. before or after the issue of the auditor’s report).
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