Would the authority to accept commissions and fees compromise the independence of a CPA?

No. First of all, it is important to remember that, under the proposed legislation, a CPA can only accept commissions or a referral fee for services provided to a client for whom the CPA is not engaged to perform attest functions. Under the Code of Professional Conduct, a CPA must maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. Moreover, any CPA who performs audit or other attestation engagements must be independent "in fact and in appearance." By establishing a wall between attest and nonattest clients, the legislation protects the independence of the CPA.

The legislation provides further protection to the public by requiring any CPA who is paid or expects to be paid a commission or fee to provide written disclosure of such payment or acceptance to the client.

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