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+--- Thread: Collusive Minimum Price Fixing by ICAP (/thread-collusive-minimum-price-fixing-by-icap)
Collusive Minimum Price Fixing by ICAP - mmunited - 03-12-2009
The Issue of Fixing minimum audit fee is just a case like cartel formed by Cement or Wheat Producers.
This act will definitely hurt the competitive environment in the Audit Industry.
Lets hope that the most elite professional body think over it again. Its an important issue because it could affect the demand supply forces.
Munawwar
- kamranACA - 03-12-2009
Dear,
I think it needs a thorough study of the causes, back ground, history and concept to understand what does minimum fee meant for.
Without understanding the concept of professional requirements, inputs required to produce effective audit and services, and the strict quality assurance needs keeping in view (at the same time) the behavior of our people towards professionalism, severe lack of understanding as to the need of reporting requirements, and the instinct to save money even by jeopardizing the critical aspects, one cannot understand the need of the minimum fee fixation.
This is not a cartel of some of the professionals out of the masses, rather this is for every body who is in the profession and who is authorized to do the job. This is a threshhold fixed by an institute that is run under a specific law of Pakistan and which does not take the decisions beyond the boundries stipulated by such law.
The authority lead by a person (no comments about him as for now) got some comments from SECP recently which are worth reading. People merely try to justify their positions to survive for the longer runs.
Let's see what eventually happens. The world has not come to an end.
Regards,
KAMRAN.