(b) The requirement is to identify what the IFAC Code
of Ethics for Professional Accountants provides with respect to
contingent fees. Answer (b) is correct because the IFAC Code
indicates that if the contingent fee presents a threat to apply fundamental
principles, the firm should establish appropriate safeguards.
Answer (a) is incorrect because a contingent fee may be
accepted if threats can be reduced to an acceptable level. Answers
(c) and (d) are incorrect because the IFAC Code does not
contain these provisions.