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Hello Prof Michael, Please check the attachment fi...

Description

Solution


Question

Hello Prof Michael, Please check the attachment file to facilitate the question for you. The client and our firm have agreed on an initial estimated audit fee of $21,000 (see the engagement letter). However, the estimated total cost of performing this year's audit is $27,510 (see the fee budget on workpaper 6-5). Discuss possible reasons why a CPA firm might charge a new client an audit fee that is lower than the estimated first-year costs of performing the audit. Thank you so much.

 

Paper#6108 | Written in 18-Jul-2015

Price : $25
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