This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 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 paragraphs
240.5−240.7 above. 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 be honest
and truthful, and not: 158 (b) Make exaggerated claims for services offered, qualifications possessed, or experience gained;
(b) Make disparaging references or unsubstantiated comparisons to the work of another.
If the professional accountant in public practice is in doubt about whether a proposed form of
advertising or marketing is appropriate, the professional accountant in public practice shall
consider consulting with the relevant professional body. SECTION 260
Gifts and Hospitality
260.1 A professional accountant in public practice, or an immediate or close family member, may be
offered gifts and hospitality from a client. Such an offer may create threats to compliance with the
fundamental principles. For example, a self-interest or familiarity threat to objectivity may be
created if a gift from a client is accepted; an intimidation threat to objectivity may result from the
possibility of such offers being made public. 260.2 The existence and significance of any threat will depend on the nature, value, and intent of the
offer. Where gifts or hospitality are off...
View Full Document
This document was uploaded on 04/03/2014.
- Spring '14