Advertisements and promotional material prepared or produced by members or firms should

not (either in content or presentation):

(a) Bring ACCA into disrepute or bring discredit to the member, firm or the accountancy

Profession

(b) Discredit the services offered by others whether by claiming superiority for the

Member’s or firm's own services or otherwise

(c) Be misleading, either directly or by implication

(d) Fall short of the requirements of the UK Advertising Standards Authority’s Code of

Advertising and Sales Promotion, notably as to legality, decency, clarity, honesty, and

truthfulness.

Commissions, fees or rewards in return for the introduction of a client are not permitted.

any reference to fees does not mislead the reader as to

the precise range of services and time commitment that the reference is intended to cover.

Pricing:
If a firm has obtained an assurance engagement at a fee lower than that charged by their

predecessor or quoted by other firms a self-interest threat is

Created.

Safeguards:
The firm must be able to demonstrate

That:

 Appropriate time and quality staff have been assigned, and

 All applicable standards are being complied with.

Contingent fees
A fee arrangement under which the amount of the fee is contingent on the result of the audit

work creates self-interest and advocacy threats.

No safeguards can reduce these threats

To an acceptable level.

Acceptance
The first audit for a new client means there are additional audit considerations.

(a) Before accepting nomination the auditor must

i. Ensure the firm is independent

ii. Ensure the firm is competent

iii. Ensure firm’s resources are adequate to service client’s needs i.e. adequate

Staff, expertise and time

iv. Obtain references in respect of new client

v. Assess the risk attaching to the client

vi. Communicate with present auditor

(b) Rules of Professional Conduct Statement 'Changes in a professional

Appointment'
i. Obtain client’s permission to communicate with present auditor

ii. If refused decline nomination

iii. If permission granted, write to auditor requesting information which may help

decision whether to accept nomination

(c) After accepting nomination

i. Ensure outgoing auditor’s removal/resignation properly conducted in
 Accordance with national regulations

ii. Ensure new appointment properly conducted

iii. Send out an Engagement Letter to the directors