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 AICPA Code of Professional Conduct? What is the essence of the rule of professional conduct dealing with contingent fees, and what are the reasons for the rule?
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 AICPA Code of Professional Conduct? What is the essence of the rule of professional conduct dealing with contingent fees, and what are the reasons for the rule?
Audit:
It is a systematic examination of books of accounts of an individual or a firm. It is done by the professional CPA; called auditors. Auditing starts where accounting end, it provides opinion on the entity's financial statement. An auditor is deemed as a responsible person, has ethical and legal duties toward stakeholders and corporations.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
