Form of Organization and Names

Question 1

What are the Basic rules of Form Organizations?

Answer 1

1 MIPPs may practice only in form of organization permitted by law
2 MIPPs may not practice under misleading firm name
3 MIPPs may not designate itself as “Members of AICPA” unless ALL CPAs owners are members of the AICPA

Question 2

Ownership of Separate Business > If the member controls the separate business…

Answer 2

Then it’s owners and Professional employees must comply with the code for issues such as commissions and referral fees

Question 3

Ownership of Separate Business > If the member is not in control of the separate business…

Answer 3

The codes provisions apply to him but not the separate firm or employees

Question 4

If a firm does attest work…

Answer 4

CPAs must own a majority of it’s financial interests

Question 5

To be part of a network, firms should share 1 or more of these…

Answer 5

1 Common control
2 Profits and Costs
3 Common business strategy
4 Significant portions of professional resources
5 Common quality control policies and procedures