The AICPA Removed Its General Prohibition of CPAs Taking Commissions

question 95

Multiple Choice

The AICPA removed its general prohibition of CPAs taking commissions and contingent fees because

• A) CPAs prefer more price competition to less.
• B) Commissions and contingent fees enhance audit independence.
• C) Nothing is inherently wrong about the form of fees charged to nonaudit clients.
• D) Objectivity is not always necessary in accounting and auditing services.

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Definitions:

Surfactant

Lipoproteins forming a monomolecular layer over pulmonary alveolar surfaces; stabilizes alveolar volume by reducing surface tension and the tendency for the alveoli to collapse.

Premature Infant

A premature infant, or preterm infant, is a baby born before 37 weeks of gestation, often requiring specialized care due to underdeveloped organs and systems.

Oxygen Transport

The process by which oxygen is carried through blood or other body fluids to tissues and organs.

Arterial and Venous Blood

Arterial blood is oxygen-rich and travels away from the heart; venous blood is oxygen-depleted and returns to the heart.