Which of the Following Fee Arrangements Is Not a Violation

question 52

Multiple Choice

Which of the following fee arrangements is not a violation of the AICPA's Code of Professional Conduct?

• A)Basing fees as an expert witness on the amount awarded to the plaintiff, even though the CPA performs a compilation for client use
• B)Basing consulting fees on a percentage of a bond issue, even though the CPA performs a review of the client's financial statements
• C)Basing fees for a tax service on the amount of the refund that the client will receive
• D)Basing consulting fees on a percentage of a bond issue, even though the CPA performs an audit of the client's financial statements

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Definitions:

Damages Award

Compensation determined by a court or agreement for losses or harm suffered by a party due to another's actions or failures.

Provisions Disclosure

The requirement in financial reporting to disclose information about any significant provisions for future liabilities or charges.

Comparatives

Financial data presented alongside current figures for the purpose of comparison with previous periods.

Discount Rate

The interest rate used to discount future cash flows to present value, often applied in investment and finance to determine the present worth of future cash flows.