New audit firms require greater safeguards to manage fee referral benchmark
More recently established audit firms will face greater challenges when managing fee referral sources in the auditor independence changes, with the need to formulate stronger safeguards to protect against incoming ATO scrutiny.
In the ATO’s auditor independent standards guidance, the Code does not specify a number of referral sources, or set percentage of fees from one or more referral sources or clients, required to reduce independence threats to an acceptable level. Nor does it explain what constitutes a ‘large proportion’ of a firm’s total fees.
Read more at SMSF Adviser.
