Auditor’s Independence & Unbilled Fee Questions

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  • #2845548 Reply
    bbmak0
    Participant

    If this considers impairing of independence of auditor?
    Let say the audit report of 2018 will be issued on 2/15/2019, and the client still has not paid the audit fee for 2018. Another service was performed in Dec 2018 – Jan 2019 and not bill until 3/1/2019.

    Is the service performed in Dec 2018 – Jan 2019 impair auditor's independence?
    My thought is Yes, and this would impair auditor's independence because of unbilled service is considered unpaid fees. (ET. Unpaid Fees .103 and .104)

    I want to confirm that my answer and thought is correct on this, please correct me if I am wrong.

    Thanks

    BBMak

    #2845578 Reply
    AndreAAndreA
    Participant

    A member in public practice may not sign a current-year audit report if it has unpaid fees from the client for services provided more than one year prior.

    FAR - 73, 78 (WileyCPAexcel 3,000+ MCQs, 50 SIMs)
    AUD - 73, 81 (WileyCPAexcel 3,000+ MCQs, 40 SIMs)
    BEC - 71, 71, 74 My life is a fucking joke.
    REG - 84 (WileyCPAexcel 2,000 MCQs, 15 SIMs)

    "Of course it’s hard. It’s supposed to be hard. If it was easy, everyone would do it.

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