Companies Act 2014 section 1544

Restrictions with regard to fees

Section 1544 deals with the rules that recognised accountancy bodies must enforce to ensure that statutory audit fees remain independent and are not linked to other services or contingent outcomes.

• Recognised accountancy bodies must include fee-related provisions in their professional standards for statutory audits.
• Statutory audit fees must not be influenced or determined by the provision of additional (non-audit) services to the audited entity.
• Statutory audit fees must not be based on any form of contingency arrangement.
• These restrictions are designed to safeguard auditor independence and objectivity.