Assuming all required disclosures are made, what must a CPA check before accepting a commission?

When a CPA is considering accepting a commission, one of the primary concerns is ensuring compliance with state regulations governing commissions. These regulations are put in place to prevent conflicts of interest and ensure that the CPA maintains their duty to act in the best interest of their clients.

State regulations often outline specific guidelines about when and how commissions can be accepted, including required disclosures. Therefore, the CPA must familiarize themselves with these regulations before proceeding with any commission arrangements. This adherence not only helps maintain professional integrity but also upholds the ethical standards expected of CPAs.

While evaluating other factors, such as the viability of the investment adviser, the client's financial status, and the terms of the client agreement, are important for maintaining a responsible practice, they do not replace the necessity of complying with state-specific commission regulations. Ensuring compliance is the foundational step that dictates whether it's ethical or permissible to accept a commission in the first place.