lowballing

lowballing
An alleged practice in which auditors compete for clients by reducing their fees for statutory audits. The lower audit fees would be compensated by the auditor carrying out highly lucrative non-audit work, such as consultancy and tax advice, for the client. It is difficult to assess how widespread the practice is in an economic climate in which competition has pushed down audit fees, but a number of well-publicized examples suggest that it has been taking place since the 1980s.

Accounting dictionary. 2014.

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  • lowballing — lowˈballing noun (informal) The business practice of tendering an unrealistically low price in order to secure a contract • • • Main Entry: ↑low …   Useful english dictionary

  • lowball — /loh bawl /, n. 1. Cards. a game of draw poker in which the player having the lowest ranking hand wins the pot. v.t. 2. to deliberately estimate a lower price for (a service or merchandise) than one intends to charge: to lowball the cost of a… …   Universalium

  • independence of auditors — The fundamental principle that auditors must be, and must be seen to be, independent to enable them to behave with integrity and make objective professional and business judgments. Specific threats to independence include: • an overdependence… …   Accounting dictionary

  • lowball — ☆ lowball [lō′bôl΄ ] vt. 1. to give an understated price, estimate, etc. to (someone), esp. without intending to honor it 2. to so understate (a price, etc.) adj. of or having to do with prices, estimates, fares, etc. that are kept very low, esp …   English World dictionary

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