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Aicpa code of professional conduct for audit fee

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Reference no: EM131739675

Question: In which one of the following situations would a CPA be in violation of the AICPA Code of Professional Conduct in determining the audit fee?

(1) A fee based on whether the CPA's report on the client's financial statements results in the approval of a bank loan.

(2) A fee based on the outcome of a bankruptcy proceeding.

(3) A fee based on the nature of the service rendered and the CPA's expertise instead of the actual time spent on the engagement.

(4) A fee based on the fee charged by the prior auditor.

Reference no: EM131739675

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