The Profession's Ethical Standards Would Most Likely Be Considered to Have

question 36

Multiple Choice

The profession's ethical standards would most likely 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)CPA would not be independent.
• B)fee was a competitive bid.
• C)actual fee would be substantially higher.
• D)actual fee would be substantially lower than the fees charged by other CPAs for comparable services.

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Definitions:

Share

A unit of ownership in a company or financial asset that represents a proportionate claim on its assets and earnings.

Partial Excludability

Characteristic of a good whereby it is difficult but not impossible to prevent people from using it, often seen in semi-public goods.

Dividend Income

Revenue received from owning shares in a company that pays out profits to its shareholders.

Taxable Income

The amount of income subject to tax, after deductions and exemptions.