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Can you accept this type of fee arrangement

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Question - Your CPA firm has performed an annual audit for a client for many years. In recent years, the annual audit fee has been approximately $50,000. Your client is in financial difficulty. The client wants to change the fee arrangement. The client offers to pay you $100,000 for the annual audit providing the audit report is unmodified and the client's application for a $10,000,000 bank loan is approved after the audit report is sent to the bank; if either the audit report is not unmodified or the bank loan is not approved, the client will pay you nothing. Can you accept this type of fee arrangement? If not, why not?

Reference no: EM132558261

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