Question

Under rule 1.510.001, a CPA is prohibited from receiving a contingent fee from a client when also performing a) An audit.

b) A review.
c) Compilation.
d) Agreed-upon procedures.

Answer 1

Under Rule 1.510.001, a CPA is prohibited from receiving a contingent fee when performing certain services such as an audit, review, compilation, or agreed-upon procedures.

Step-by-step explanation:

Rule 1.510.001 prohibits a CPA from receiving a contingent fee from a client when performing certain services, including an audit, a review, compilation, and agreed-upon procedures. A contingent fee is a fee that is dependent on the outcome or result of the service provided.

For example, if a CPA charges a fee that is tied to the client receiving a certain tax refund, it would be considered a contingent fee. This rule is in place to maintain the independence and objectivity of the CPA profession.