Discussion Post: Accounting Ethics
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
• Identify the parties potentially affected by this audit and the fee plan proposed.
• What are the ethical factors in this situation? Explain.
• Would you recommend that Thorne accept this audit fee arrangement? Why or why not?
• Describe some ethical considerations guiding your recommendation.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.