Identify the parties potentially affected by the audit

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Reference no: EM132854935

Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet's financial statements. In discussing the audit fee, Allnet's management suggests a fee range in which the amount depends on the reported profit of Allnet. The higher its profit, the higher will be the audit fee paid to Thorne's firm.

Required

Question 1: Identify the parties potentially affected by this audit and the fee plan proposed.

Question 2: What are the ethical factors in this situation? Explain.

Question 3: Would you recommend that Thorne accept this audit fee arrangement? Why or why not?

Question 4: Describe some ethical considerations guiding your recommendation.

Reference no: EM132854935

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