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:

Thorndike

An American psychologist known for his work on learning theory and the law of effect, which states that behaviors followed by satisfying consequences are likely to be repeated.

Observational Learning

Acquiring new behaviors or information by watching the actions or expressions of others.

Operant Conditioning

is a learning process through which the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

A learning process in which a neutral stimulus becomes associated with a meaningful stimulus and acquires the capacity to elicit a similar response.