Ala. Admin. Code r. 30-X-6-.04 - Responsibilities To Clients

Current through Register Vol. 40, No. 6, March 31, 2022

(1) Confidential Client Information. A registrant shall not disclose any confidential information obtained in the course of a professional engagement except with the consent of the client.
(a) This rule shall not be construed
1. to relieve registrant of his obligation under Rules 30-X-6-.03(2) and 30-X-6-.03(3),
2. to affect in any way his compliance with a validly issued subpoena or summons enforceable by order of a court,
3. to prohibit review of a practitioner's professional practices as a part of voluntary quality review, or,
4. to preclude him from responding to any inquiry made by the ethics division or Trial Board of the American Institute of CPAs, by a duly constituted investigative or disciplinary body of a State CPA Society or PA Association, or under State statutes.
(2) Contingent Fees. A member in public practice shall not
(a) Perform for a contingent fee any professional services for, or receive such a fee from a client for whom the member or the member's firm performs,
1. an audit or review of a financial statement' or
2. a compilation of a financial statement when the member expects, or reasonably might expect, that a third party will use the financial statement and the member's compilation report does not disclose a lack of independence; or
3. an examination of prospective financial information; or
(b) Prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client.
(c) The prohibition in (1) above applies during the period in which the member or the member's firm is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in any such listed services.
(d) Except as stated in the next sentence, a contingent fee is a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service. Solely for purposes of this rule, fees are not regarded as being contingent if fixed by courts or other public authorities, or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies.
(e) A member's fees may vary depending, for example, on the complexity of services rendered.

Author: Alabama Board of Public Accountancy


Ala. Admin. Code r. 30-X-6-.04
Filed September 3, 1982. Amended: Filed March 21, 1994; effective April 25, 1994.

Statutory Authority: Code of Ala. 1975, ยงยง 34-1-1, et seq.

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