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. • identify the parties potentially affected by this audit and the fee plan proposed. (15 points)
• summarize the ethical factors in this situation. (15 point)
• would you recommend thorne accept this audit fee arrangement? describe some ethical considerations guiding your recommendation. (20 points)