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A member in public practice shall neither receive from, nor pay to, a client a commission...

A member in public practice shall neither receive from, nor pay to, a client a commission when the member or member’s firm also performs certain services for that client. Are commissions allowed if the CPA performs:

A compilation that will be used by a third party? (and) An audit of prospective financial information?

  • Yes / Yes

  • No / No

  • Yes / No

  • No / Yes

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Answer #1

B.No/NO.

CPA is not allowed to accept commissions even when CPA performs the compilation that will be used by a third party and also when he performs an audit of prospective financial information.

CPA shall be guilty of professional misconduct if he accepts any form of commission from client or his agents.

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