If a CPA Charges a Contingent Fee in Connection with Providing

question 24

Multiple Choice

If a CPA charges a contingent fee in connection with providing management consulting services to a non-audit client,the CPA's fee arrangement is:

• A) Permissible always
• B) Permitted only if the fee arrangement is expressed in a clear writing signed by the client
• C) Permitted only if the CPA is not a member of the AICPA
• D) Never permissible

---

Definitions:

Marketable Securities

Financial instruments that can be easily converted into cash, such as stocks, bonds, or treasury bills.

Operating Activities

Activities that relate directly to the primary business operations of a company, such as selling products or providing services.

Financing Activities

Transactions that involve raising capital for the business and repaying investors, such as issuing debt and equity or paying dividends.

Financing Activities

Actions that result in changes to the size and composition of the equity capital or borrowings of a company.