Firms that register with us between 1 October and 31 December will pay 50% of the registration fee for the first year.

Transcription

1 REGULATORY FEES Audit fees 2018 Audit annual fees are made up of three parts: audit registration fee; Financial Reporting Council (FRC) levy; and FRC Audit Quality Review team levy only payable by firms that have in-scope audit work. As this only applies to very few firms, it is not shown here and the relevant firms have been contacted separately. Audit registration fee This is an annual fee charged to all ICAEW audit registered firms. Firms that register with us between 1 October and 31 December will pay 50% of the registration fee for the first year. To calculate the fee, combine: the number of principals (including salaried principals) of the firm (whether resident or not) and employees who are responsible individuals; principal is defined as a partner, director or sole practitioner; the number of offices and trading names*; and the number of listed company clients the firm audits; listed company is defined as: any company incorporated in the UK and registered on a Recognised Investment Exchange for the purpose of the Financial Services and Markets Act Currently, these are the London Stock Exchange (including the Alternative Investment Market), PLUS Markets plc (formerly OFEX) and Virt-X (formerly Tradepoint Financial Networks plc); or any company incorporated in the Republic of Ireland with a full listing on the Irish Stock Exchange or the Small Companies Market. Overseas firms registered firms not resident in the UK, the Channel Islands, the Isle of Man or the Republic of Ireland will be required to pay twice the appropriate fee shown in part 1 of the fee scale (the fee in part 2 is not doubled). *Trading names used to sign audit reports will be treated as additional offices, even if the address from which they trade is the same as that of the main firm. For billing purposes, an office is any separate location of the firm mentioned on its letterhead. Structure of the fee scale The audit registration fee scale is in three parts and firms are required to pay the total of the amount that applies to their size of firm from each scale. Part 1 is the base fee scale and applies to all firms. Part 2 relates to the costs of the Financial Reporting Council (FRC) and applies to all firms. ICAEW 2018 ICAEW Regulatory Fees - Audit 2018 Page 1 of 9

2 The FRC provides an estimate of the operational funding it will require from ICAEW and for cases involving ICAEW registered firms. A formula shares the costs across all firms except sole practitioners with no listed clients. These costs form the FRC levy. Part 3 relates to the costs of the FRC s Audit Quality Review team. This part will only apply to those firms that audit listed companies, major charities, major pension funds, mutual organisations and other major public interest entities. As this applies to very few firms, it is not shown here and the relevant firms have been contacted separately. There are no fee reductions for retired members or part-time practitioners. Fee rationale The fee is payable by firms registered with ICAEW as a registered auditor and is determined by: a. the number of the principals (including salaried principals) of the firm (whether resident or not) and employees who are responsible individuals; principal is defined as a partner, director or sole practitioner; b. the number of offices and trading names; and c. the number of listed company clients the firm audits; listed company is defined as: New applications i any company incorporated in the UK and registered on a Recognised Investment Exchange for the purpose of the Financial Services and Markets Act Currently, these are the London Stock Exchange (including the Alternative Investment Market), PLUS Markets plc (formerly OFEX) and Virt-X (formerly Tradepoint Financial Networks plc); ii any company incorporated in the Republic of Ireland with a full listing on the Irish Stock Exchange or the Small Companies Market. Firms applying for audit registration during 2018 will be required to pay the full annual registration fee for which they are liable, as shown in the two tables, at the time of application. If the third element of the fee scale applies to an applicant, we will notify the firm when we receive the application. A firm registered between 1 October 2018 and 31 December 2018 only pays 50% of the registration fee. Applicants should enclose, with the completed application form, a cheque made payable to CHARTAC for the registration fee for which they are liable. If a firm s application is not accepted, the fee will be refunded. Payment The audit registration fee is payable on 1 January Failure to pay may result in your firm s audit registration being withdrawn (see audit regulation 2.11). New applicants are required to pay when applying for their registration. If you are renewing your firm s audit registration, you can pay online. However, if your firm is applying to become a registered auditor for the first time, you will need to pay by card or cheque. Direct debit payments UK bank account holders only ICAEW 2018 ICAEW Regulatory Fees - Audit 2018 Page 2 of 9

3 If you d like to pay by direct debit, please scan your mandate and it to creditcontrolpsd@icaew.com If you choose to pay by direct debit, we must receive your completed direct debit instruction and any billing amendments by 13 January The total payable will be debited from your account on 25 January If you have already authorised collection by direct debit, please check the collection details on the invoice. If any of these details are incorrect, you will need to complete a new mandate. Credit card payments If you would like to pay by credit card (Visa/Mastercard) or debit card (Delta/Maestro), please call +44 (0) , quoting your firm s reference number. Invoice or payment queries T +44 (0) E creditcontrol-psd@icaew.com Overseas firms Registered firms not resident in the United Kingdom of Great Britain and Northern Ireland, the Channel Islands, the Isle of Man or the Republic of Ireland will be required to pay twice the appropriate fee shown in part 1 of the fee scale (the fee in part 2 is not doubled). Trading names and other offices Trading names will be treated as additional offices, even if the address from which they trade is the same as that of the main firm. For billing purposes, an office is any separate location of the firm mentioned on its letterhead. For billing purposes, ICAEW will disregard those offices that are used only for meetings, at which no staff are located and no records are maintained (ie, market-day offices). Trading names will also be disregarded if that trading name is not used in the signing of audit reports and not used in a way to indicate it is a registered auditor. Firm changes Mergers two or more firms merge and change the name of the resulting firm If firms merge, they will remain liable for any existing fees owed, but they will not have to pay a registration fee for the new firm in the calendar year of merger. This only applies if all the firms involved in the merger were previously registered. A new application form will be required from the new firm. Dissolution firm dissolves to form new firm(s) If a firm dissolves and two or more firms are set up, all with new firm names, any firm wishing to be a registered auditor will have to pay a registration fee for the current year. Any existing fees owed by the original firm must be paid before any new registrations can be considered. Acquisition one firm acquires another and keeps its current name A registered auditor that acquires another firm will have to pay any existing fees owed. It will not have to submit a new application form or pay a further fee, but must inform ICAEW of the acquisition. ICAEW 2018 ICAEW Regulatory Fees - Audit 2018 Page 3 of 9

4 Hive-off one or more principals leaves an existing firm to form new practices Any new firms have to submit a new application form and pay a registration fee. Change of legal form If a firm changes to a limited company or a limited liability partnership, no additional fee for the year will be required. This only applies if all the existing partners continue as partners or directors/shareholders in the new entity and no new partners or directors/shareholders are added. However, the firm must submit a new application form as it is a different legal entity that is now registered. Change of firm name A change of firm name not arising from a merger (see above) will not affect the fee payable. However, ICAEW must be told in writing. Cessation and application to withdraw If a firm s audit registration is withdrawn by order of the Audit Registration Committee, it remains liable for the full fee payable in the calendar year of withdrawal. A firm that wishes to withdraw its audit registration must make a written request, setting out the reasons for withdrawal, to the Professional Conduct Department (PCD). All outstanding fees and levies must still be paid, unless PCD receives notification before the end of January Effect of changes The fee will be calculated on the basis of the information held about a firm at the time of issuing the invoice or when a firm applies to be registered. Changes which are notified subsequently may be taken into account if they lead to an increased registration fee. Support ICAEW provides a number of services to support members in their practice activities. Technical helpline for guidance on independence and other ethical matters T +44 (0) , E ethics@icaew.com Support Members are based in district society areas and provide a non-judgmental support service. Phone our helpline for details of your nearest support member T , E support.members@icaew.com. Practice Advisory Services give advice on most aspects of a firm s performance, including practice management control, organisation, marketing and profitability. They also provide services relating to compliance with the audit regulations, including cold file reviews T +44 (0) , E practice.services@icaew.com. These services are confidential and none of the staff are subject to the duty to report misconduct. ICAEW 2018 ICAEW Regulatory Fees - Audit 2018 Page 4 of 9

5 Audit registration fee Number of principals Number of listed clients Number of offices Sole nil ,611 2, ,455 2,578 3,316 4, ,455 2,578 3,316 4, nil ,508 1,904 2, ,722 2,385 3,051 3,843 5, ,722 2,385 3,051 3,843 5, ,946 2, nil 1,410 1,833 2,320 2,586 3,005 3, ,788 3,733 4,636 5,166 6,090 7, ,788 3,733 4,636 5,166 6,090 7, ,788 4,636 5,774 7,218 9,659 11, , nil 2,378 2,794 3,428 4,599 6,421 8, ,791 5,571 6,902 9,265 13,237 17, ,791 5,571 6,902 9,265 13,237 17, ,791 5,571 6,902 9,265 13,237 17, ,791 5,571 6,902 9,265 13,237 17, ,791 5,571 6,902 9,265 13,237 17, nil 3,428 4,040 5,714 7,095 9,253 12, ,960 10,560 11,124 13,418 15,710 19, ,604 15,277 16,465 18,553 21,479 22, ,813 18,073 20,291 23,256 25,270 33, , nil 5,294 5,799 7,382 8,354 11,905 15, ,341 12,662 14,568 15,877 18,778 21, ,519 18,778 20,652 22,932 26,770 29, ,275 23,445 26,255 30,287 34,377 37, ,939 31,533 33,874 37,400 42,859 48, nil 7,959 8,715 11,905 12,805 15,553 19, ,775 22,116 22,991 27,946 31,043 35, ,927 25,005 29,015 33,238 38,528 39,416 ICAEW 2018 ICAEW Regulatory Fees - Audit 2018 Page 5 of 9

6 ,638 35,948 39,416 48,464 51,115 54, ,232 42,859 46,267 50,921 61,721 68, ,343 51,354 54,880 61,553 76,454 85, ,520 76,515 91,559 99, , , , , , , , , nil 11,161 12,048 12,805 15,314 18,215 21, ,991 24,874 29,015 33,238 34,941 41, ,238 37,460 41,289 47,587 49, ,859 45,260 52,243 59,477 64, ,362 57,149 68,593 85, , ,515 84,313 97, , , , , , , , , , , , , , , , , , , , , , , , nil 12,865 14,628 15,506 20,291 23,445 26,436 29, ,087 33,238 37,714 43,232 47,587 55, ,580 43,494 47,958 51,726 60,161 64, ,477 61,863 66,520 71,799 87, ,754 78,410 92, , , , , , , , , , , , , , , , , , , , , , , nil 16,141 17,832 19,079 22,236 25,438 28,642 31, ,686 38,205 41,792 49,086 54,378 61, ,451 49,086 56,262 60,015 69,039 74, ,891 76,838 80,617 86, , ,584 92, , , , , , , , , , , , , , , , , ,352 ICAEW 2018 ICAEW Regulatory Fees - Audit 2018 Page 6 of 9

7 , , , , , ,259 Financial Reporting Council (FRC) levy The FRC levy is paid by audit registered firms. There are two parts. Part 1: The FRC operations cost which is passed on to audit registered firms. This part of the levy increases in 2018, largely due to the rebalancing of FRC costs to the audit profession. Part 2: The FRC conduct committee cost, which will remain at 2016 levels for If you are a sole practitioner with no listed clients you will not be charged this levy. Number of principals Number of listed clients Number of offices Sole nil nil ,125 1, ,125 1, ,125 1, nil ,081 1,196 1,415 1, ,081 1,196 1,415 1, ,081 1,196 1,415 1, nil ,087 1,459 2,021 2, ,484 1,731 2,194 2,946 4,192 5, ,484 1,731 2,194 2,946 4,192 5, ,484 1,731 2,194 2,946 4,192 5, ,632 1,904 2,413 3,241 4,611 5, nil 1,659 1,993 2,843 3,514 4,446 5, ,940 5,217 5,542 6,809 7,892 9, ,375 7,847 8,391 9,295 10,682 11, ,445 9,120 10,162 11,725 11,006 17, , nil 3,503 3,897 5,031 5,752 8,119 10,392 ICAEW 2018 ICAEW Regulatory Fees - Audit 2018 Page 7 of 9

8 1-5 7,814 8,680 9,947 10,872 12,836 14, ,034 12,895 13,983 15,482 18,025 19, ,212 15,772 17,796 20,218 23,107 25, ,025 21,139 22,760 25,072 29,004 32, nil 8,295 9,171 12,460 13,350 16,311 20, ,731 23,118 24,016 29,276 32,418 36, ,990 26,106 30,181 34,730 40,289 41, ,857 37,605 41,188 49,388 54,602 56, ,042 45,813 49,443 54,559 66,100 73, ,589 54,895 58,558 65,803 81,623 91, ,748 60,385 70,999 81,873 97, , ,423 66, , , , , ,665 73, , , , , ,424 19,886 21,073 25,181 30,123 36, ,016 40,986 47,981 54,996 57,656 68, ,982 55,526 62,618 69,073 78,027 82, ,143 71,686 75,647 87,297 99, , to 50 77,476 82,463 86,581 94, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,330 24,247 25,709 33,377 38,621 43,622 47, ,818 47,998 54,996 62,301 71,407 78,446 92, ,480 62,031 71,707 79,043 85,443 99, , ,157 78,855 98, , , , , ,223 98, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,161 52,164 55,789 65,114 74,521 83,713 92, ,272 95, , , , , ,026 ICAEW 2018 ICAEW Regulatory Fees - Audit 2018 Page 8 of 9

9 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,982 1,046,985 1,062,909 Important to note Failure to pay before the stated deadline may result in your firm s licence being withdrawn. View our terms and conditions for the payment of regulatory fees at icaew.com/regulatorytcs For more information about fees please visit icaew.com/regulatoryfees ICAEW 2018 ICAEW Regulatory Fees - Audit 2018 Page 9 of 9