John Drake, a partner at Drake and Buetz, is meeting with a potential new client. The client recently saw the firm's TV advertisement claiming that the firm was "the premier accounting firm in western Canada." The client requires a review engagement report with its financial statements to obtain a bank loan. John advises that his fee will be 10 percent of any bank loan granted.

What principles and/or rules of professional conduct apply to this scenario?

a - There is a violation with regards to advertising.

b - Professional competence is lacking because of the advertising of the firm as the "premier" accounting firm.

c - There is no violation of an ethical principles or rules of prefessional conduct.

d - There is a violation of the code of professional conduct regarding fees and pricing.

e - A bank always requires an audit, a review engagement is nor permitted.

f - Fees are to be based on an estimate of work performed, not on percentage of a bank loan.