[Anonymous]

So … isn’t there a rule that says that the auditor’s revenues from one engagement should not exceed a certain percent ?

Thanks for your help 🙂

[Tina82]

Do you mean auditor's non-audit revenues from the same client? If so, I think that the non-audit servces that are 5% or less of total revenues from audit for the year do not need to be approved by the audit committee.

Not sure what you're asking since it looks like you took audit so perhaps in came up in a different section. Either way good luck.

R - 74;88
A - 84
B - 74;89
F - no study = 67; May 15 = 87 & done

[Anonymous]

Thanks Tina82 🙂 … No really … i was referring to Audit : In order for an auditor to be independent No one client should have a High percentage of his revenues. because if that was the case his business would be depending on that client so much that he would lose his Independence.

I really have no idea where i heard this … I was hoping that someone would know ! “maybe i'm totally wrong”

[Texas27]

Any fees that are due that have been in A/R of the accounting firm over one year must paid by the client before the start of the next audit or independence is impaired

BEC - Feb 2012: 80
AUD - Feb 2012: 84
FAR - Apr 2012: 78
REG - May 2012: 90

Thanks Becker!

[jenuno01]

@Texas – you are correct, but I think there is a caveat where the fees do NOT have to be necessarily paid in full; however, there has to be some sort of financing or payment arrangement in effect.

Class of 2012

[Texas27]

@jenuno101… you are correct, I failed to mention that… I also think I was responding to the wrong question anyways. I think aalkukhun is referring to if revenues from one client exceed a portion of revenues for that entire firm (office) then that might impair independence. In this case, generally, if a firm derives more than 15% of its total revenues from one audit client, independence MAY be impaired because this may cause the firm to be overly dependent on the client. The 15% limit does not necessarily mean that they are impaired but it does mean that other factors should be considered to determine if they are impaired because the auditor is too dependent on that client.

BEC - Feb 2012: 80
AUD - Feb 2012: 84
FAR - Apr 2012: 78
REG - May 2012: 90

Thanks Becker!

[Author]

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