Part A: Discuss the correctness of the statementStatute allows auditors to be paid reasonable fees. As long as these are not too high or too low there are no ethical issues when the auditor is paid. Fees must be disclosed as a separate line item on the financial statements.Part B: Bases:$1.$ Profit IProportions:$1.8-10\%2.$ Sales$2.1-3\%3.$ Total assets$3.1-2\%$