The SMSF Association has urged caution on introducing a 20% threshold for auditor referral fees as part of the proposed amendments to the fee-related provisions of APES 110 Code of Ethics for Professional Accountants.
SMSF Association CEO, John Maroney, said the proposed introduction of a 20% threshold for auditor referral fees will become a dominant focus of these draft amendments to the fee related provisions of APES 110, and may have unintended consequences. In a submission on APESB exposure draft 03/21, the SMSF Association said that:
- the current framework and standards should be retained and supplemented by Regulator guidance to address industry specific issues and concerns;
- if a threshold test must apply, a 30% threshold should apply in respect of total fees from multiple audit clients referred from one source, ensuring a consistent approach to other proposed amendments; and
- a 2-year period should be introduced in which auditors must consider audit fees from a single referral source.
Source:SMSF Association media release, 13 September 2021
[LTN 176, 13/9/21]
[Tax Month – September 2021] 3.10.21