John Drake, a partner at Drake and Buetz, is meeting with a potential new client. The...
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John Drake, a partner at Drake and Buetz, is meeting with a potential new client. The client recently saw the firm's TV advertisement claiming that the firm was "the premier accounting firm in westernCanada. The client requires a review engagement report with its financial statements to obtaina bank loan. John advises that his fee will be 10 percent of any bank loan granted. What principles and/or rules of professional conduct applies to this scenario? O There is a violation with regards toadvertising. O Professional competence is lacking because of the advertising of the firm as the "premier" accountants. O There is no violation of any ethical principles or rules of professional conduct. O There is a violation of the code of professional conduct regarding fees and pricing. O Abank always requires an audit, a review engagement is not permitted. OFees are to be based on an estimate of work performed, not on percentage of a bank loan. John Drake, a partner at Drake and Buetz, is meeting with a potential new client. The client recently saw the firm's TV advertisement claiming that the firm was "the premier accounting firm in westernCanada. The client requires a review engagement report with its financial statements to obtaina bank loan. John advises that his fee will be 10 percent of any bank loan granted. What principles and/or rules of professional conduct applies to this scenario? O There is a violation with regards toadvertising. O Professional competence is lacking because of the advertising of the firm as the "premier" accountants. O There is no violation of any ethical principles or rules of professional conduct. O There is a violation of the code of professional conduct regarding fees and pricing. O Abank always requires an audit, a review engagement is not permitted. OFees are to be based on an estimate of work performed, not on percentage of a bank loan.
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Professional conduct is the code of conduct which an individual related to a business must practice ... View the full answer
Related Book For
Fraud examination
ISBN: 978-0538470841
4th edition
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
Posted Date:
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