1)Under which of the following circumstances may member May charge a client a contingent fee?

May audits ABC Co. and wishes to charge it a contingent fee for the audit work.

May audits ABC Co. and wishes to charge it a contingent fee for separate consulting work.

May is examining prospective financial information for XYZ Co. and wishes to charge it a contingent fee for unrelated consulting services.

May prepares TUV Co.'s tax returns and wishes to charge it a contingent fee for nontax consulting services.

2)Sally's manager seems to be incredibly eager to please their firm's audit client. Sally is thinking seriously about the Code of Professional Conduct and trying to remember where she must draw the line. Which of the following is permissible?

Signing a document that she knows is misleading.

Failing to correct a misstatement that she has the authority to correct.

Making a misleading entry in the client's financial records when her manager instructs her to do so.

Failing to correct a misstatement that she lacks the authority to correct.