A common requirement/effect of the commissions and contingent fees rule is:
A) A CPA who accepts such a payment always violates independence
B) The CPA must disclose the acceptance of such a payment to the firm
C) A CPA is prohibited from accepting such a form of payment when engaged in attest services for a client
D) The CPA must not turn over any working papers that might constitute client books and records

Question

Quizplus · Accepted Answer

The commissions and contingent fees rule prohibits a CPA from accepting such a form of payment when engaged in attest services for a client. This is to ensure that the CPA maintains independence and does not create a conflict of interest. Option A is not always true as there are exceptions where a CPA can accept commissions or contingent fees without violating independence. Option B is also not always necessary as disclosure may not be required in certain situations. Option D is not relevant to the commissions and contingent fees rule.

A Common Requirement/effect of the Commissions and Contingent Fees Rule