Two CPAs visiting at a recent meeting of the state CPA society were talking about accepting commissions and performing work on a contingent fee basis. The first one said he did not accept commissions for serv-ices provided to any client because it was unethical. The second one said she did accept commissions for work done for any of her clients, and that it was ethical.

Required 

a. Under what circumstances would each CPA be correct? Under which situa- tions could commissions for services be accepted?

b. What are contingent fees, and why might a client be interested in bids for serv- ices on a contingent fee basis?

c. What other professions allow contingent fee work? What is the rationale for contingent fees in the professions?

d. What was the most likely rationale for the AICPA to prohibit the performance of any contingent fee services for attestation clients?