Week 2 Topic 2 Post 2 Review Minimum of 150 words APA format

Week 2 Topic 2 Post 2 Review Minimum of 150 words APA format

Deirdre

The fact that the client pays the auditor for auditing their financial statements is not a violation of the Professional Code of Conduct.  In fact, the code has a “Contingent Fees Rule”.  This rule aids in keeping the auditor independent from the client.  The rule states that an auditor must charge a fee that is not contingent upon a certain result or as a guarantee of a particular outcome.  The auditor can charge different fees based upon the complexity of the case.  The auditor must have proof of adequate safeguards to prevent violation of the independence rule.  If a situation arises then the auditor must be able to take appropriate action.

References:

AICPA Code of Professional Conduct. (2014). Retrieved October 27, 2017, from

http://www.aicpa.org/Research/Standards/CodeofConduct/Pages/default.aspx