Susan Small,CPA,has Medium Corporation as an audit client.Medium has asked Small to create and install a new computerized payroll system.Because Small does not have the appropriate level of expertise,she referred Medium to Compusystems,Inc.,a local software consulting company.Small has an arrangement by which Compusystems pays her 10 percent of any fee received from her referrals.Small has disclosed this to her client.
Required:
This situation involves a possible violation of the AICPA's Code of Professional Conduct.State the rule in question and explain why or why not there is a violation of the code.You need not refer to the rule number but should clearly describe the rule in question.

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The Answer of Susan Small,CPA,has Medium Corporation as an audit client.Medium has asked Small to create and install a new computerized payroll system.Because Small does not have the appropriate level of expertise,she referred Medium to Compusystems,Inc.,a local software consulting company.Small has an arrangement by which Compusystems pays her 10 percent of any fee received from her referrals.Small has disclosed this to her client.
Required:
This situation involves a possible violation of the AICPA's Code of Professional Conduct.State the rule in question and explain why or why not there is a violation of the code.You need not refer to the rule number but should clearly describe the rule in question.

Susan Small,CPA,has Medium Corporation as an Audit Client