Audit Fee Dependency Ethics

Listed entities: Fees must not exceed 10% of total revenue.
Unlisted entities: Fees must not exceed 15% of total revenue.

Listed Entities (Plc)

Fees from a single listed client (including audit and non-audit services) must not regularly exceed 10% of the audit firm's total annual fee income.
If fees are expected to exceed 5% but remain under 10%, the firm must:
- Disclose this to its Ethics Partner or Function.
- Disclose the situation to those charged with governance (e.g., the audit committee).
- Consider and implement appropriate safeguards to address threats to independence, such as independent quality control reviews.
If fees regularly exceed 10%, the firm must not accept or continue the audit engagement.

Fees from a single unlisted client (including audit and non-audit services) must not regularly exceed 15% of the audit firm's total annual fee income.
If fees are expected to exceed 10% but remain under 15%, the firm must:
- Disclose this to its Ethics Partner or Function.
- Disclose the situation to those charged with governance.
- Arrange for an external independent quality control review before finalizing the audit report.
If fees regularly exceed 15%, the firm must not accept or continue the audit engagement.

The limits are stricter for listed entities due to their higher public accountability:

This guidance ensures that auditors maintain independence and objectivity, avoiding excessive reliance on any single client.