In performing an audit, Jackson, CPA,
discovers that the professional competence
necessary for the engagement is lacking.
Jackson informs management of the
situation and recommends another local
firm, and management engages this other
firm. Under these circumstances,
a. Jackson may request compensation
from the other firm for any
professional services rendered to it
in connection with the engagement.
b. Jackson may accept a referral fee from
the other firm.
c. Jackson has violated the AICPA Code of
Professional Conduct because of
nonfulfillment of the duty of
performance.
d. Jackson's lack of competence should be
construed to be a violation of generally
accepted auditing standards.
discovers that the professional competence
necessary for the engagement is lacking.
Jackson informs management of the
situation and recommends another local
firm, and management engages this other
firm. Under these circumstances,
a. Jackson may request compensation
from the other firm for any
professional services rendered to it
in connection with the engagement.
b. Jackson may accept a referral fee from
the other firm.
c. Jackson has violated the AICPA Code of
Professional Conduct because of
nonfulfillment of the duty of
performance.
d. Jackson's lack of competence should be
construed to be a violation of generally
accepted auditing standards.