Fees

Question 1

What are Contingent fees?

Answer 1

Fees established for any service pursuant to an arrangement in which no fee will be charged unless a specific finding or result is made (lawyers)

Question 2

Members shall NOT receive contingent fees for…

Answer 2

1 Financial Statement review or audit
2 Financial Statement compilation reasonably expected to be used by a 3rd party that does not disclose a lack of independence
3 Examination of prospective financial information
4 Original Tax Returns

Question 3

Referral fees and commissions are NOT permitted for…

Answer 3

Attest clients (audits)

Question 4

Referral fees and commission are permitted for…

Answer 4

Non-attest (consulting, tax returns) clients but must be disclosed

Question 5

Commissions can be gained when….

Answer 5

Reselling a product to a client at a profit w/o disclosure

Question 6

Commissions can be received when….

Answer 6

Members subcontract work to a 3rd party and mark up the cost of service