Question
The finance director of an audit client states that the fee for tax advisory services this year should be based on a percentage of tax
The finance director of an audit client states that the fee for tax advisory services this year should be based on a percentage of tax saved. What safeguards, if any, are required in relation to the basis for the fees for taxation services and the external audit assignment?
The finance director of an audit client states that the fee for tax advisory services this year should be based on a percentage of tax saved. What safeguards, if any, are required in relation to the basis for the fees for taxation services and the external audit assignment?
A As long as the total fee received from client is less than 15% of audit firms total fee income, no safeguards are required
B.The client should be informed that the taxation services must be based on time spent and experience of staff involved
C. As long as the audit fee is based on time spent and experience of staff involved, no safeguards are required
D.Taxation services be accepted as there are no safeguards to reduce the threat to objectivity in the conduct of the external audit
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