A Common Requirement/effect of the Commissions and Contingent Fees Rule

question 38

Multiple Choice

A common requirement/effect of the commissions and contingent fees rule is:

• A) A CPA who accepts such a payment always violates independence
• B) The CPA must disclose the acceptance of such a payment to the client
• C) A CPA is prohibited from accepting such a form of payment when engaged in attest services for a client
• D) All of these

---

Definitions:

Conditional Contract

A contract whose validity or enforcement depends on the fulfillment of certain conditions.

Assignment

The transfer of rights, property, or responsibilities from one party to another.

Stop Payment

A stop payment is a request made to a bank to not pay out on a check or payment that has been issued but not yet cashed.

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific amount of money to the bearer.