What is a contingent fee basis?

Audit contingent fees

In some audit engagements, fees may be agreed upon subject to the achievement of certain results or the performance of a specific activity; such fees are called contingent fees.

Contingent fees are calculated on a predetermined basis related to the outcome of a transaction or to the result of the services rendered by the firm or the accounting professional performing activities as statutory auditor or auditor. This type of fee is implemented in engagements where the audit team is tasked with specific findings or where a specific review is required on evidence that demands a series of results.

Agreeing fees for an audit engagement whose main purpose is to provide a degree of assurance on the information contained in the financial statements, in order to validate the verifiability and reasonableness of the information before third parties who have a specific interest therein, gives rise to the threat of self-interest. This is due to the fact that the payment is subject to the results and therefore compromises the principles of independence and objectivity of the accounting professional.

Indirect financial interest

Contingent fees are calculated on a predetermined basis related to the result of a transaction or to the result of the services rendered by the firm or the accounting professional performing activities as statutory auditor or auditor.

Agreeing fees for an audit engagement whose main purpose is to provide a degree of assurance on the information contained in the financial statements, in order to validate the verifiability and reasonableness of the information before third parties having a specific interest therein, gives rise to a self-interest threat.

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Code of Professional Ethics

That is why we represent all of our clients who are victims of personal injury or wrongful death on a contingency fee basis. This means that if we accept your case, we advance all of the expenses of the process, including our fees and those of the experts we consult, and you will not have to reimburse us unless we obtain compensation for you. In short, if we do not obtain an award in your case, there will be no cost to you.

Contingency fees also provide the assurance that our firm will give your case its full attention. By fighting on your behalf for maximum compensation, we also maximize our payout. The attorney who charges a flat or hourly rate is not as motivated as when his or her payment is contingent upon the success of the case. So if you have been in an accident, you need a Miami personal injury lawyer who will stop at nothing to get you the compensation you deserve.

What is a contingent fee basis? 2021

240.2 The existence and significance of any threats created will depend on factors such as the level of fees quoted and the services to which they apply. The significance of any threats shall be assessed and safeguards applied where necessary to eliminate the threat or reduce it to an acceptable level. Examples of these safeguards include:

240.3 For certain types of work other than assurance, contingent fees are often used.1 However, they can create threats to compliance with the fundamental principles in certain circumstances. They can create a self-interest threat to objectivity. The existence and significance of these threats will depend on factors including:

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240.4 The significance of any such threats shall be assessed, and safeguards applied where necessary to eliminate or reduce them to an acceptable level. Examples of such safeguards include: