Question: You are an auditor whose client will be using its audited financial statements to apply for a loan at its local bank. The signed engagement

You are an auditor whose client will be using its audited financial statements to apply for a loan at its local bank. The signed engagement letter contains discussion of the fees to be paid by the client. The fee consists of two $50,000 payments (one to be made at the beginning of the audit and one at the end) plus a $10,000 additional fee that will be paid, if the client is able to obtain an interest rate lower than 5% on its loan. Discuss which one AICPA Rule of Conduct would be most relevant to this situation and whether the auditor would be in violation of it. Explain and be specific

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