For which of the following engagements is a contingent fee permitted?
A)an audit engagement of a large listed corporation
B)a tax consulting assignment assessing the excise tax payment processes
C)a review engagement of a small manufacturing corporation
D)an assurance engagement of leasehold payments for a rental agreement

Question

Quizplus · Accepted Answer

A contingent fee is generally not permitted for audit and assurance engagements, and a review engagement also falls under this category. However, a tax consulting assignment may permit a contingent fee arrangement as it is not considered an attest engagement. Therefore, the only option in which a contingent fee may be permitted is option B, which is a tax consulting assignment.

For Which of the Following Engagements Is a Contingent Fee