Under what condition may a CPA accept a commission when providing services to a client?

A CPA may accept a commission when providing services to a client under the condition that proper disclosures are made to the client. This requirement is rooted in the ethical guidelines set out by the AICPA Code of Professional Conduct, which emphasizes transparency and full disclosure to clients regarding potential conflicts of interest.

When a CPA receives a commission, it could create a conflict between the CPA's duty to provide unbiased advice and the incentive to recommend certain products or services for personal gain. Therefore, to mitigate this risk, the CPA must make full disclosures about the nature of the commission to ensure that the client is fully aware and can make informed decisions.

This commitment to transparency is essential for maintaining trust and confidence in the professional relationship between the CPA and the client. It safeguards the integrity of the profession and ensures that the interests of the clients are prioritized.

In contrast, accepting a commission is not permissible if the client is an attest client or if the service provided is an attest service, as these relationships are governed by stricter rules to protect the independence of the CPA. Additionally, a client's request for a referral does not automatically justify the acceptance of a commission without the necessary disclosures being made.