Conduct and practice of the malaysian institute of

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Unformatted text preview: nd the basis of remuneration. (c) Quality control policies and procedures. (d) Review by an objective third party of the work performed by the professional accountant in public practice. Referral Fees or Commissions 240.5 In certain circumstances, a professional accountant in public practice may receive a referral fee or commission relating to a client. For example, where the professional accountant in public practice does not provide the specific service required, a fee may be received for referring a continuing client to another professional accountant in public practice or other expert. A professional accountant in public practice may receive a commission from a third party (e.g., a software vendor) in connection with the sale of goods or services to a client. 1 Contingent fees for non-assurance services provided to assurance client are discussed in Section 290 of Part I of the By-Laws. 39 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS Accepting such a referral fee or commission may give rise to self-interest threats to objectivity and professional competence and due care. 240.6 A professional accountant in public practice may also pay a referral fee to obtain a client, for example, where the client continues as a client of another professional accountant in public practice but requires spet services not offered by the existing accountant. The payment of such a referral fee may also create a self-interest threat to objectivity and professional competence and due care. 240.7 A professional accountant in public practice should not pay or receive a referral fee or commission, unless the professional accountant in public practice has established safeguards to eliminate the threats or reduce them to an acceptable level. Such safeguards include: (a) (b) Disclosing to the client any arrangements to receive a referral fee for referring the client to another professional accountant in public practice. (c) 240.8 Disclosing to the client any arrangements to pay a referral fee to another professional accountant for the work referred. Obtaining advance agreement from the client for commission arrangements in connection with the sale by a third party of goods or services to the client. A professional accountant in public practice may purchase all or part of another firm on the basis that payments will be made to individuals formerly owning the firm or to their heirs or estates. Such payments are not regarded as commissions or referral fees for the purpose of paragraph 240.5 – 240.7 above. 40 By-Laws (On Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants [Issued January 2007] PART I: BY-LAWS ON PROFESSIONAL ETHICS Section 250 Marketing Public Practice Services Advertising or marketing services 250.1 When a professional accountant in public practice solicits new work through advertising or other forms of marke...
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This document was uploaded on 09/23/2013.

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