ACCT 540 Week 6 Assignment, AICPA Section 300
Contingent fees arrangements are not allowed as a service to a client if the firm also performs the audit function or assessments of the client’s financial information. For example, in the case of Arthur Andersen and Enron, an accounting firm cannot offer consulting services to a client that the firm already performs the auditing services for. This could and has created issues in the past, mainly with Arthur Andersen and the fear of losing income from the client. CPAs can provide services using contingent fees arrangements to clients that are currently having their audits performed by another firm. When a potential client wants a firm to support……………..