Final answer:
The Nguyen CPA firm should consider ethical standards and potential conflicts of interest before accepting a contingent fee tied to the sale of a business. Professional judgment and adherence to regulatory guidelines must guide their decision.
Step-by-step explanation:
The Nguyen CPA firm is faced with a decision about accepting a from a contingent fee nonattest client. The firm must consider ethical standards within the accounting industry before accepting such fees. According to professional accounting standards, CPA firms should avoid situations that could impair their objectivity or independence, and contingent fees tied to specific outcomes, such as the sale of a business, could potentially create a conflict of interest.
In evaluating the decision, the CPA firm would need to compare this opportunity against the ethical codes and regulations governing their practice. If accepting the contingent fee could result in a compromised professional judgment or is prohibited by regulatory bodies or state boards to which the CPA firm is subject, then declining the offer would be the appropriate action.