The AICPA Code of Professional Conduct Will Ordinarily Be Considered

question 58

Multiple Choice

The AICPA Code of Professional Conduct will ordinarily be considered to have been violated when the CPA represents that specific consulting services will be performed for a stated fee and it is apparent at the time of the representation that the:

• A) Actual fee would be substantially higher.
• B) Actual fee would be substantially lower than the fees charged by other CPAs for comparable services.
• C) Fee was a competitive bid.
• D) CPA would not be independent.

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Definitions:

Expected Growth Rate

The annual rate at which an investment, earnings, or value is expected to grow.

Annual Dividend

Annual dividend is the total amount of dividend payments a shareholder receives from a company in one year.

Zero Growth Stock

A stock in a company which is not expected to experience any growth in dividends or earnings and typically pays a high dividend yield.

Required Rate

The minimum return that investors expect or the company estimates it needs to generate from a capital investment or project to consider it viable.