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