Assume that an auditor makes an agreement with a client that theaudit fee will be contingent upon the number of days required to complete the engagement.Is this a violation of the Code of Professional Conduct? What is the essence of the rule ofprofessional ethics dealing with contingent fees, and what are the reasons for the rule?
Assume that an auditor makes an agreement with a client that theaudit fee will be contingent upon the number of days required to complete the engagement.Is this a violation of the Code of Professional Conduct? What is the essence of the rule ofprofessional ethics dealing with contingent fees, and what are the reasons for the rule?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume that an auditor makes an agreement with a client that the
audit fee will be contingent upon the number of days required to complete the engagement.
Is this a violation of the Code of Professional Conduct? What is the essence of the rule of
professional ethics dealing with contingent fees, and what are the reasons for the rule?
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