Which statement is incorrect regarding professional

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107. Which statement is incorrect regarding Professional Competence and Responsibilities Regarding the Use of Non-Accountants? a. Professional accountants in public practice should refrain from agreeing to perform professional services which they are not competent to carry out. b. If a professional accountant does not have the competence to perform a specific part of the professional service, technical advice may be sought from experts. c. In situations wherein a professional accountant sought technical advice from experts, although the professional accountant is relying on the technical competence of the expert, the knowledge of the ethical requirements cannot be automatically assumed. d. If at any time the professional accountant is not satisfied that proper ethical behavior can be respected or assured, the engagement should not be accepted unless the engagement has commenced in which case the auditor is allowed to finish the engagement. SECTION 10 - Fees and Commissions 108. Professional fees should be a fair reflection of the value of the professional services performed for the client, taking into account: a b c d The skill and knowledge required for the type of professional services involved Yes Yes Yes Yes The level of training and experience of the persons necessarily engaged in performing the professional services Yes Yes Yes No The time necessarily occupied by each person engaged in performing the professional services Yes Yes No No The degree of responsibility that performing those services entails Yes No No No
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Page 18 of 21 109. Which statement is incorrect regarding professional fees? a. Professional fees should normally be computed on the basis of appropriate rates per hour or per day for the time of each person engaged in performing professional services. b. The appropriate rates should be based on the fundamental premise that the organization and conduct of the professional accountant in public practice and the services provided to clients are well planned, controlled and managed. c. It is for each professional accountant in public practice to determine the appropriate rates. d. It is not proper for a professional accountant in public practice to charge a client a lower fee than has previously been charged for similar services
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  • Spring '10
  • Mr.Cula
  • Accounting, Accountant, Certified Public Accountant

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