It states that a company should not enter into a contingent fee agreement with respect to an audit or other assurance commitment, as this creates unacceptable threats of self-interest and defense. Audit committees should also note that the PCAOB has rules of ethics and independence regarding independence, tax services, and contingent fees.
Why are external auditors not allowed to accept contingent fees?
It states that a company should not enter into a contingent fee agreement with respect to an audit or other assurance commitment, as this creates unacceptable threats of self-interest and defense. Audit committees should also note that the PCAOB has rules of ethics and independence regarding independence, tax services, and contingent fees.
