In short
A contingent fee is a fee charged only if a specified finding or result is attained, or whose amount depends on the result. Members may not charge one to an attest client or for preparing an original or amended tax return.
Key takeaways
- Attest clients here include audit, review and examination clients, and compilation clients when the report will be used by third parties and doesn't disclose a lack of independence.
- Fees fixed by courts or government agencies aren't contingent fees.
- A contingent fee for representing a client in a tax examination is allowed.
Where it's tested
AUD: Professional Ethics & Independence — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A contingent fee arrangement is PROHIBITED when a CPA: