In which of the following circumstances would a CPA 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.

Question

Quizplus · Accepted Answer

The "Rules of Professional Conduct" states that a CPA cannot base their fee on the expectation of obtaining certain favorable results or on a percentage of the client's income. Basing a fee on the approval of a bank loan violates this rule. The other options do not violate the rule. A fee fixed by a court is outside the control of the CPA, a fee based on time estimated to complete the engagement plus out-of-pocket expenses is a commonly used method, and a fee based on the complexity of the engagement is a reasonable method to determine a fee.

In Which of the Following Circumstances Would a CPA Be