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:

Long Term

Pertaining to an extended period of time, typically involving planning or investment that spans several years.

Meaningful

Significance or value that is profound, having a deep impact or relevance.

Vision

A forward-looking statement or concept that outlines what an organization or individual wants to achieve or become in the future.

Mission Statement

A short statement that defines an organization's purpose, goals, and approach to its operations, guiding its internal decision-making processes.