Question

A contingent fee may be accepted by a CPA who performs an examination of prospective financial information.

a-true
b-false

Answer 1

A contingent fee may be accepted by a CPA who performs an examination of prospective financial information. This statement is true.

Step-by-step explanation:

A contingent fee may be accepted by a CPA who performs an examination of prospective financial information.

This statement is true. A contingent fee is a fee that is only paid if the CPA achieves a specific financial outcome. In the context of examining prospective financial information, a CPA may agree to a contingent fee if they believe the outcome is uncertain or there is a risk involved.

For example, if a CPA is asked to evaluate the financial projections of a startup company, they may agree to a contingent fee based on the company's future success.