A recently certified accountant tells you that they have a prospective new client. The client is well-respected in the community and taking on the client could prove to be a significant boost for their new firm. They continue to explain that the prospective client wants to agree to an engagement fee of: $25,000 if the opinion is unqualified, $20,000 if the audit opinion is qualified or adverse. 

What should the recently certified accountant do and why?

Answer rating: 100% (QA)

SOLUTION The recently certified accountant should not accept the engagement fee arrangement as proposed Generally Accepted Auditing Standards GAAS do ... View the full answer