SOCPA Approves Amendments on Threats Arising from Fees and Other Compensation
The Saudi Organization for Chartered and Professional Accountants (SOCPA), represented by the Professional Ethics Committee, has approved amendments made by the International Ethics Standards Board for Accountants (IESBA) to the sections related to threats arising from fees and other compensation in the International Code of Ethics for Professional Accountants.
The primary aim of this amendment is to highlight adherence to the fundamental principles of the International Code of Ethics and to apply the conceptual framework to address threats arising from fees and compensation for professional services (audit engagements, assurance engagements, and other services provided to audit clients). Several requirements and application materials have been added to address various circumstances related to fees paid by an audit client, such as unpaid fees and dependency on fees. The amendment also emphasizes the importance of quality communication between practitioner members and those charged with governance at the audit client side regarding fee-related information and disclosing this information to stakeholders.
To view this amendment, click here.