APES 110 Would Be Violated If an Auditor Accepted a Fee

question 26

Multiple Choice

APES 110 would be violated if an auditor accepted a fee for services and the fee was:

• A)fixed by a public authority.
• B)based on a price quotation submitted in competitive bidding.
• C)based on time spent at standard charge rates.
• D)payable after a specified finding was attained in a review of a financial report.

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Definitions:

Sales On Account

Transactions where goods or services are sold and payment is deferred to a future date, essentially selling on credit.

Cost Of Goods Sold

The costs directly connected with generating the goods a firm sells to its customers.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Financial Data

Information relating to the financial status or performance of a company, including income, expenses, assets and liabilities.