In Which One of the Following Situations Would a CPA

question 28

Multiple Choice

In which one of the following situations would a CPA be in violation of the AICPA Code of Professional Conduct in determining a fee?

• A)A fee based on whether the CPA's report on the client's financial statements results in the approval of a bank loan.
• B)A fee based on an estimate of the number of hours needed to complete the engagement by auditors of various levels of experience.
• C)A fee based on the nature of the service rendered and the CPA's particular expertise instead of the actual time spent on the engagement.
• D)A fee based on the fee charged by the prior auditor.

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Definitions:

Vision

The ability to interpret the surrounding environment using light in the visible spectrum reflected by the objects in the environment.

Opponent Process Theory

A psychological and neurological model that explains how the perception of colors is controlled by the operation of opposing neural systems.

Trichromatic

Describes the feature of having three colors, in psychology, it specifically refers to the trichromatic theory of color vision.

Retinex Theories

A set of theories proposing how the human eye and brain perceive colors consistently under different lighting conditions.