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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 also creates a self-interest threat to objectivity and professional competence
and due care. 240.7 The significance of the threat shall be evaluated and safeguards applied when necessary to
eliminate the threat or reduce it to an acceptable level. Examples of such safeguards include:
• • Disclosing to the client any arrangements to receive a referral fee for referring the client to
another professional accountant in public practice. • 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
paragraphs240.5−240.7 above. 36 SECTION 250
Marketing Professional Services
250.1 When a professional accountant in public practice solicits new work through advertising or other
forms of marketing, there may be a threat to compliance with the fundamental principles. For
example, a self-interest threat to compliance with the principle of professional behavior is created
if services, achievements, or products are marketed in a way that is inconsistent with that
principle. 250.2 A professional accountant in public practice shall not bring the profession into disrepute when
marketing professional services. The professional accountant in public practice shall...
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This document was uploaded on 04/03/2014.
- Spring '14