What Is the Difference on Contingent Fees Under the PCAOB

question 34

Multiple Choice

What is the difference on contingent fees under the PCAOB rules versus the AICPA rules?

• A)Both rules allow contingent fees for an audit client if the contingency is based upon findings of government agencies.
• B)The AICPA prohibits contingent fees to an audit client.
• C)The PCAOB allows contingent fees for non public companies engagements.
• D)The PCAOB prohibits contingent fees in tax engagements performed for an audit client.

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Definitions:

Two-Way Communication

An interactive form of communication in which there is an exchange of thoughts, feelings, or both.

One-Way Communication

Communication in which a person sends a message to another person and no feedback, questions, or interaction follows.

Reflective Listening

A communication technique where the listener focuses on understanding the speaker's message and emotions, reflecting them back to confirm understanding.

Data Capacity

Refers to the maximum amount of information that can be stored and managed within a system or storage device.