In Which of the Following Circumstances Would a CA Be

question 22

Multiple Choice

In which of the following circumstances would a CA be in violation of the "Rules of Professional Conduct" in quoting a fee to a client?

• A)A fee fixed by a court.
• B)A fee based on the approval of a bank loan.
• C)A fee based on the time estimated to complete the engagement plus out-of-pocket expenses.
• D)A fee based on the complexity of the engagement.

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Definitions:

AC

Alternating current, a type of electrical current in which the flow of electric charge periodically reverses direction.

Government

The organization or system through which a community or society exercises authority and performs functions.

Inefficiency

A situation where resources are not used in the best possible way, often leading to wasted potential.

Monopoly

An economic setup where there is only one provider of a good or service, possessing total market control due to the lack of any similar alternatives.