What must a CPA do to legally accept a commission?

To legally accept a commission, a CPA must make required disclosures to the client. Under the AICPA Code of Professional Conduct and applicable state regulations, transparency is crucial when it comes to considering commissions. This involves informing clients about the nature and terms of the commission in order to avoid any conflicts of interest and to maintain the integrity of the professional relationship.

The requirement for disclosure is grounded in the principle of honesty and fair dealing. By clearly communicating the existence and terms of the commission, a CPA ensures that the client is fully informed, which helps to foster trust and ethical standards in practice. This disclosure helps both parties understand the potential implications of the commission on the CPA’s objectivity and independence.

While obtaining written consent from the client can also play a role in certain situations, the primary obligation is to make the required disclosures to uphold ethical standards in accounting practices. This careful communication is vital in maintaining professionalism and compliance with ethical guidelines.