The AICPA removed its general prohibition of CPAs taking commissions and contingent fees because
A) CPAs prefer more price competition to less.
B) Commissions and contingent fees enhance audit independence.
C) Nothing is inherently wrong about the form of fees charged to nonaudit clients.
D) Objectivity is not always necessary in accounting and auditing services.

Question

Quizplus · Accepted Answer

The AICPA removed its general prohibition of CPAs taking commissions and contingent fees because they believed that there was nothing inherently wrong with the form of fees charged to nonaudit clients. Rather, the focus should be on ensuring independence and objectivity in providing accounting and auditing services.

The AICPA Removed Its General Prohibition of CPAs Taking Commissions