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 western Canada.$$ The client requires a review engagement

report with its financial statements to obtain a bank loan. John

advises that his fee will be $10$ percent of any bank loan

granted.

What principles and$/$or rules of professional conduct apply to this

scenario?$($Several choices may be correct.$)1)$ There is a violation with regards to advertising$\mathrm{.}2)$ Professional competence is lacking because of the advertising

of the firm as the $$premier$$ accounting firm$\mathrm{.}3)$ There is no violation of any ethical principles or rules of

professional conduct$\mathrm{.}4)$ There is a violation of the code of professional conduct

regarding fees and pricing$\mathrm{.}5)$ A bank always requires an audit, a review engagement is not

permitted$\mathrm{.}6)$ Fees are to be based on an estimate of work performed, not on

percentage of a bank loan.

Answer rating: 100% (QA)

The principles andor rules of professional conduct that apply to this scenario are 1 There is a viol... View the full answer