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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Advertising, tendering, and obtaining professional work and fees

Orla Tan, an audit partner at Meridian & Co, wants to send unsolicited letters to directors of companies in her town, outlining the firm's services and fee ranges. Which statement is correct under the IESBA Code?

Unsolicited letters are permitted if they are honest, truthful and not misleading, and comply with local law or regulation. The Code does not ban solicitation or mentioning fees, but marketing must not discredit the profession or make exaggerated claims.

  1. AUnsolicited approaches are banned absolutely under the Code
  2. BSuch approaches may be made provided they are honest, truthful and not misleading, and comply with any applicable local law or regulationCorrect
  3. CUnsolicited approaches are only allowed to existing audit clients
  4. DFee ranges may not be mentioned in any marketing material

Explanation

The IESBA Code does not prohibit solicitation as such; it requires that marketing not bring the profession into disrepute and be honest and truthful, subject to local law. It does not restrict approaches to existing clients only, nor ban fee information.

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