The AICPA Code of Professional Conduct Will Ordinarily Be Considered

question 15

Multiple Choice

The AICPA Code of Professional Conduct will ordinarily be considered to have been violated when the CPA represents that specific consulting services will be performed for a stated fee and it is apparent at the time of the representation that the:

• A)There was a referral fee that was not disclosed to the client.
• B)Actual fee would be substantially lower than the fees charged by other CPAs for comparable services.
• C)Fee was a competitive bid.
• D)CPA would not be independent.

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Definitions:

Compensate

To make amends or give an equivalent to someone for loss, damage, or suffering experienced.

Free-Rider Problem

A situation where individuals consume a good or service without paying for it, especially in the context of public goods.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be consumed by many people without depleting and without preventing others from consuming it.

Nonrival

A good or service is nonrival if its consumption by one individual does not reduce its availability to others.