Discussion board | Accounting homework help

 Discussion 1: Chapter 1 Ethical Issue

All chapter discussions are ‘post-first’ discussions. That means, you must create and submit your own response (post) before you are able to see discussion posts from other students. Click create thread  to type your response. You cannot edit or delete your response after you submit.

Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial statements. In discussing the audit fee, Allnet’s management suggests a fee range in which the amount depends on the reported profit of Allnet. The higher its profit, the higher will be the audit fee paid to Thorne’s firm.

Required

1. Identify the parties potentially affected by this audit and the fee plan proposed. 
2. What are the ethical factors in this situation? Explain.
3. Would you recommend that Thorne accept this audit fee arrangement? Why or why not?
4. Describe some ethical considerations guiding your recommendation.

Your post will be graded as follows:

Addresses prompt(s) fully using standard English grammar and spelling.80%Substantial response to one classmate (do not just say “Nice post” or “I agree”) using standard English grammar and spelling.10%Substantial response to one more classmate (do not just say “Nice post” or “I agree”) using standard English grammar and spelling10%Total Possible