The Ethic Code of the Professional Accountants. Emoluments and other Means of Remuneration, Variable Dues

Author:Urania MOLDOVANU

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Keywords:Ethic Code, audit engagement, fee, contingent fees, commissions, related fees

Abstract:
The article presents the regulations of the Ethic Code issued by IFAC and adopted by the Chamber of Financial Auditors of Romania, regulations that address the establishment methods regarding the emoluments and other means of remuneration for the services performed by financial auditors. \r\nThe text addresses different issues regarding the threats to compliance with the fundamental principles, threats generated by the level of the emoluments received and the services offered according to the charged fees – IAS 210 “The audit engagements terms”, the fundament of the calculation of the fees and of other agreements regarding the payment and the allocation of the necessary time budget and of the qualified personnel for accomplishment of the engagement, as well as the Council Decision no. 44/03.03.2005 regarding the approval of the minimum medium number of hours for accomplishing a financial audit engagement.\r\nThere are also taken into discussion a number of problems related to the emoluments, respectively, the public interest entities that are audit clients, the debt fee and the tariffs. Some comments are made regarding the contingent fees: the contingent fee concept and contingent fee types: the contingent fee charged for an assurance engagement and the contingent fee charged by an audit entity for a non assurance engagement and there is also a case study presented. Commissions and related fees are addressed in the last part of the article. \r\n\r\n

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