Chapter 1, Problem 1BTN

1.

Summary Introduction

Concept Introduction:

Audit fee: Audit fee is the payment made by the company to the service rendered by the outside auditor to his company.

To determine:The parties affected by the proposed fee plan and the audit that is taking place.

2.

Summary Introduction

Concept Introduction:

Audit fees: Audit fees is a fee charged by an auditor to verify, evaluate and certify the financial statements of the company.

To explain: The ethnical situations mentioned in this case.

3.

Summary Introduction

Concept Introduction:

Bidding: Bidding is process in which the shares of the company are put on stock exchange where company is registered. So, the bid price of the company’s share is mentioned in stock exchange. This happens in the types of auction.

To explain: Recommendation regarding company’s acceptance of audit fees arrangement.

4.

Summary Introduction

Concept Introduction:

Ethics of Accounting profession: The financial statements can be said fair and true only when ethics of accounting profession is strictly followed. The professional auditors and accounts should strictly stick to the fundamental principles of the accounts. Whenever any record of transaction is taking place, an honest approach should be followed. No, malpractices should be practiced under the influence of anyone.

To explain: Ethical considerations which guide the given recommendations.