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

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Definitions:

Rush Orders

Orders that are given priority over others, typically requiring faster production and delivery times at potentially higher costs.

Uneconomical Lot-Sizes

Lot-sizes that do not maximize efficiency or cost-effectiveness in production or ordering.

Service Company

A business entity that provides intangible products or services to customers rather than physical goods.

Fixed And Variable Cost

Fixed and Variable Cost are two types of costs incurred by businesses; fixed costs do not change with the level of production or service, while variable costs vary directly with the level of production or service.