Which of the following is considered to be a safe compensation arrangement for a forensic accountant?
A) a lump sum amount
B) a commission based on the success of the engagement
C) an advance payment for the full amount
D) an hourly fee with a retainer

Question

Quizplus · Accepted Answer

An hourly fee with a retainer is considered to be a safe compensation arrangement for a forensic accountant. This ensures that the forensic accountant is compensated for their time and expertise, while also providing the client with the assurance that the costs will not exceed a certain amount. A lump sum amount or commission based on the success of the engagement may create conflicts of interest and incentivize the forensic accountant to act unethically. An advance payment for the full amount may not be feasible if the scope of the engagement changes or if the work takes longer than expected.

Which of the Following Is Considered to Be a Safe