Code of Ethics
Section 330
Jamshaid Akhtar ACA
Level of Fee
-CA may quote whatever fee is deemed to be
appropriate
-However, not to quote fee lower than charged
by previous CA who carried out
audit (undercutting)
+unless, scope materially differs
Factors relevant for evaluation of threat;
-whether client is aware of the term of
engagement
-basis on which fee is calculated
-whether level of fee is set by third party/
regulator
Actions that might be safeguards
to address self-interest;
-adjust level of fee or scope
-review of work
Fee and Other Types of
Remunerations
-may create self-interest threat
Referral or
Purchase or Sale of
Commission
Firm
(pay or receive)
Self interest threat to objectivity and professional
competence and due care
Payment made to owners for the
-fee paid to other CA to obtain new work
purchase of another firm will not be
-fee received from other CA for referring specific considered as referral or commission
services where does not provided by existing CA
-CAs may receive commission regarding sales of
good or services (software)
-
Actions that might be safeguards to address self-
interest;
-disclosing client to pay or receive referral fee or
commission
-obtaining advance agreement from client for
commission regarding sale of goods or service
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