Deferred audit fees

Deferred audit fees

Deferred audit fee. As a rule, the owners of audit institutions do not pay the full amount of the audit fee in advance.

And in some cases, they pay the remaining fee when submitting the audit report.

There are also cases.

The unpaid fee (fee for audit and non-audit services) will remain until the next periods.

In this case, it should be checked.

Can the unpaid fee of the previous year (in any amount) be considered as a loan and financial facility together with the current year’s fee?

In general, the deferred audit fee should be received before publishing the audit report.

Because if there is an unpaid fee.

During the publication of the audit report, the auditor’s independence is lost or distorted.

With this description, accountants working in companies are less worried about the loss of auditor’s independence.

In this sense, it is better to observe the code of professional conduct before starting the audit work.

One of the partners of the audit firm who is not involved in the audit work,

Assess the situation and check whether wage the arrears should be treated as a loan or not.

If the result of the examination and measurement is this.

that the deferred and current fee for audit or non-audit services is similar to a loan.

In this case, the auditor should not accept the audit work.

Or that he should resign.

Another solution is that it should, the issue of unpaid fees.

With the audit committee of the employer, a professional auditor should be selected to consult and control the audit work of the company in question.

so that the independence of the auditor is not distorted.

Another suggestion is that before signing the audit contract for the year in question, he should decisively and irreconcilably request an independent auditor from his employer.

Pay all outstanding audit and non-audit fees first.

Then the independent auditor will sign the new contract.

Otherwise, he should resign or the issue of unpaid fees.

With the audit committee of the employer, a professional auditor should be selected to consult and control the audit work of the company in question.

To preserve the independence of the auditor.