A member in public practice can receive a contingent fee for
A) An audit or review of a financial statement.
B) A compilation of a financial statement.
C) An examination of prospective financial statements.
D) Representing a client in an IRS tax audit.

Question

Quizplus · Accepted Answer

According to the AICPA Code of Professional Conduct, a member in public practice cannot receive a contingent fee for an audit or review of a financial statement, a compilation of a financial statement, or an examination of prospective financial statements. However, a member can receive a contingent fee for representing a client in an IRS tax audit.

A Member in Public Practice Can Receive a Contingent Fee