Test your knowledge of professional ethics. (contingency fees for accounting services)

Periodically, the Journal publishes questions on ethics topics that have been raised by American Institute of CPAs members. This set deals with Rule 302--Contingent fees of the AICPA Code of Professional Conduct. In 1990, the AICPA entered into a consent agreement with the Federal Trade Commission that effectively revised Rule 302. While much publicity was given to this action, there appears to be some confusion among Institute members about the application of the revised rule.

Rule 302 now allows members to perform professional services on a contingent fee basis and accept contingent fees under certain circumstances. Before entering into a contingent fee arrangement with a client, a member must consider what other …