Discussion Post: Ethical Issue
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.
Task
• 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 must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.