Change fee in the Code of Ethics

Aug 6th, 2022
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How to change fee in the Code of Ethics

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hello ucar peter christensen here coming to you from the ceos desk going to talk about an ethics change that came down at the last board of directors meeting a couple weeks ago at the nar convention the virtual convention and it was it was not without controversy but it did pass so im not going to focus on the controversy so much on on the arguments for or against it and whether or not its a good thing the debates done i think pretty much everything was said about it that could be said and ultimately it was passed and it was implemented immediately so coming out of that meeting it was it was good to go so i just wanted to kind of tell you what it does and maybe a little bit what it doesnt do but a lot of confusion maybe a lot has been said about it so hopefully hopefully youve seen something about so you know im talking about really the controversy came from there were a few changes all kind of sprinkled together but the controversy came from policy statement 29 which said a rea

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The revised IESBA Code applies to all professional accountants (not just those in public practice), including some professional accountants in the United States. It brings new considerations and strengthens some requirements that potentially go beyond the AICPA Code of Professional Conduct.
The IESBA Code now requires firms to publicly disclose when a firm has applied the independence requirements for public interest entities in an audit of the financial statements of an entity.
That is, generally in a contingency fee agreement, the lawyer only receives compensation if the lawyer has successfully represented the client. Further, the amount the lawyer receives is contingent upon the result the lawyer obtains and often on the phase of litigation in which the dispute settles.
Audit fee is a professional fee for statutory financial statements.It is paid annualy and covers a period of 12 months,however,there is need to make provision in the books which ensures that this cost is spread monthly to PL aacounts and liabilities created ingly.
The eight factors used to determine a reasonable fee are: time and labor required; other employment opportunities; customary fees in the community; amount involved and the results obtained; time limitations; professional relationship with a client; experience, reputation, and ability of the lawyer; and type of fee (
The revisions to the fee-related provisions of the code include a prohibition on firms allowing the audit fee to be influenced by the provision of services other than audit to the audit client; in the case of PIEs, a requirement to cease to act as auditor if fee dependency on the audit client continues beyond a
These changes include: A new general prohibition on a firm or network firm to provide a NAS to an audit client that is a public interest entity (PIE) if the provision of that service might create a self-review threat to the firms independence.
The most relevant of the Rule 4-200 factors are items (1) comparison of fee charged to value received; (8) the experience, reputation and ability of the attorney; and (11) the informed consent of the client to the fee.

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