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Independence when fees are due

By Joseph J. Gormley, CPA posted 07-23-2018 02:20 PM

  
I know the answer but i cannot find a site for it. I have a client who owes me more than one year in fees. I want to present him with documentation showing that I cannot issue a financial statement under those circumstances. Can anyone guide me in the appropriate direction?
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Edward K. Zollars, CPA
07-27-2018 03:40 PM

See ET 1.230.010 (Unpaid fees), specifically ET 1.230.010.02:

Threats to the covered member’s compliance with the “Independence Rule” [1.200.001] would not be at an acceptable level and could not be reduced to an acceptable level by the application of safeguards if a covered member has unpaid fees from an attest client for any previously rendered professional service provided more than one year prior to the date of the current-year report. Accordingly, independence would be impaired. Unpaid fees include fees that are unbilled or a note receivable arising from such fees.