What is one factor the ICAEW code of ethics states fees should be determined by?

The ICAEW code of ethics emphasizes that fees should be determined by the degree of risk and responsibility that the work entails. This approach acknowledges that different engagements carry varying levels of complexity and exposure to risk, which directly impacts the resources required to complete them effectively. When a task involves greater risk or responsibility, it typically necessitates more rigorous procedures, higher expertise, and more intensive oversight, which in turn justifies a higher fee.

For instance, an audit involving high-risk areas or complex accounting matters would likely require more thorough investigation and professional judgment, leading to increased time and expertise. Therefore, aligning fees with the level of risk underscores the principle of proportionality and fairness within the profession.

Factors like time to complete the audit, the nature of the client's business, or the importance of work to the client can influence the fee structure; however, they do not encapsulate the critical consideration of risk and responsibility as highlighted by the code. Focusing on risk ensures that auditors are adequately compensated for the challenges and liabilities they take on, ultimately supporting the integrity and quality of the profession.