Independence will be presumed to be impaired if the CPA or firm permit holder

Independence will be presumed to be impaired if the CPA or firm permit holder performs audit services, other than for charitable organizations, for a fee that is less than the direct labor cost reasonably expected at the time the engagement was accepted to be incurred in performing such services. For this purpose direct labor costs means the total compensation of the person or persons expected to perform the service for the time they are expected to serve on the engagement plus all payroll expenses related to such compensation.