Wash. Admin. Code § 4-30-045 - Commission and referral fees
(1) A licensee in
public practice shall not for a commission recommend or refer to a client any
product or service, or for a commission recommend or refer any product or
service to be supplied by a client, or receive a commission, when the licensee
or licensee's firm also performs for that client:
(a) An audit or review of a financial
statement; or
(b) A compilation of
a financial statement when the licensee expects, or reasonably might expect,
that a third party will use the financial statement and the licensee's
compilation report does not disclose a lack of independence; or
(c) An examination of prospective financial
information.
(2) This
prohibition applies during the period in which the licensee is engaged to
perform any of the services listed above and the period covered by any
historical financial statements involved in such listed services.
(3) Any licensee who is not prohibited by
this rule from performing services for, or receiving a commission or referral
fee must:
(a) Disclose the arrangement in
writing and in advance of client acceptance;
(b) Disclose the method of calculating the
fee or amount of fee;
(c) Specify
the licensee's role as the client's advisor; and
(d) Obtain the client's consent to the fee
arrangement in writing.
(4) For the purposes of this rule,
"licensees" includes licensees, CPA firms, nonlicensee firm owners, employees
of such persons, out-of-state individuals with practice privileges under
RCW
18.04.350 (1), and
out-of-state firms permitted to offer or render certain professional services
in this state under the conditions prescribed in
RCW
18.04.195.
Notes
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