The normal basis for professional work is on the
time spent on the work calculated at appropriate hourly rates for principles,
senior and other staff. The hourly rate may vary according to the difficult or
complexity of the work involved. It is up to the accountants to decide upon
their hourly rates depending on cost structures, the
time spent on the work calculated at appropriate hourly rates for principles,
senior and other staff. The hourly rate may vary according to the difficult or
complexity of the work involved. It is up to the accountants to decide upon
their hourly rates depending on cost structures, the
complexity of the work,
the timetable for completion, market conditions, and e.g.
It is not permissible to charge on a percentage
basis except where status or custom allows, e.g. in liquidation and
receivership work, nor should audits be carried out on a contingency fee basis.
basis except where status or custom allows, e.g. in liquidation and
receivership work, nor should audits be carried out on a contingency fee basis.
A contingency fee is one based on the achievement
of some goal or target, for example, a fee based on the successful raising of
finance.
of some goal or target, for example, a fee based on the successful raising of
finance.
It is possible for accountants charge for non-audit
services on a contingency fee basis; however, the basis of charging such fees
must be notified to the client in writing and agreed by client.
services on a contingency fee basis; however, the basis of charging such fees
must be notified to the client in writing and agreed by client.
Accountants who receive commissions from
stockbrokers, insurance brokers, e.t.c for transactions effected for clients or
for trusts of which the accountant is a trustee should either:
stockbrokers, insurance brokers, e.t.c for transactions effected for clients or
for trusts of which the accountant is a trustee should either:
·
Pass on
the commissions to the client or trust by deducing the amounts received from
their fees and showing the deduction on the invoice; or
Pass on
the commissions to the client or trust by deducing the amounts received from
their fees and showing the deduction on the invoice; or
·
Keep the
commissions if specifically authorized to do so by the client.
Keep the
commissions if specifically authorized to do so by the client.
