Audit Fees. Ursula Chona, Contador Publico (CP Titulado), an auditor from Medellin, Colombia, was referred a client by a local attorney and she has agreed to accept the client for a financial statements audit. She must now determine what fee she will charge.

Required:

A. According to international ethics, the fee should be a fair reflection of effort, taking what conditions into account?

B. On what basis should the fee be calculated? Should out-of-pocket expenses be included or listed separately?

C. What are the circumstances under which Chona can ask for a contingency fee?

D. Can Chona pay a “finder’s fee” to the attorney who referred the client to her?