An Auditor Recommends a Local Computer Company to a Client

question 103

Multiple Choice

An auditor recommends a local computer company to a client that is trying to upgrade its computerized sales records.The client purchases $25,000 worth of equipment and sends a check to the auditor for 5 percent of the total sales.This is an example of a

• A) Commission.
• B) Contingent fee.
• C) Referral fee.
• D) Nonaudit fee.

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Definitions:

Process Control

The practice of monitoring and adjusting processes to ensure they meet desired outcomes, often used in manufacturing and production.

Outcome Control

The regulation and monitoring of results or outputs, often in a business or organizational context.

Bargaining Positions

The contextual stances parties take in negotiation scenarios influenced by their needs, desires, expectations, and the power balance.

Win-win

describes a situation or outcome where all parties involved benefit or are satisfied with the resolution.