In Which One of the Following Situations Would a CPA

question 28

Multiple Choice

In which one of the following situations would a CPA be in violation of the AICPA Code of Professional Conduct in determining a fee?

• A)A fee based on whether the CPA's report on the client's financial statements results in the approval of a bank loan.
• B)A fee based on an estimate of the number of hours needed to complete the engagement by auditors of various levels of experience.
• C)A fee based on the nature of the service rendered and the CPA's particular expertise instead of the actual time spent on the engagement.
• D)A fee based on the fee charged by the prior auditor.

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Definitions:

Protection of the Public

Policies and measures implemented to safeguard the general populace from harm, including health, safety, and welfare concerns.

Competitions

Events or activities where individuals or groups vie against each other to achieve a goal or win a prize.

Unconscionable

Describes actions or terms that are so unjust or overwhelmingly one-sided that they are considered contrary to fair play.

Public Policy

Guidelines and principles that reflect the societal values and interests which guide lawmakers and government actions.