Which of the following statements is true regarding commissions for CPAs in California?

Commissions for CPAs in California can be permitted under specific conditions, making the statement about disclosures correct. According to the California Accountancy Act and the rules set forth by the California Board of Accountancy, CPAs may receive commissions on certain recommendations or referrals, provided that they fully disclose the nature and extent of the compensation to their clients. This transparency is crucial as it allows clients to make informed decisions and maintains trust in the professional relationship.

The requirement for disclosure is a key ethical consideration that helps ensure that the CPA’s judgment remains impartial and not unduly influenced by the financial incentive associated with the commission. In contrast, the other statements are limited or incorrect in this context: commissions are not always prohibited, they are not restricted solely to attest services, and there is no specific training requirement for accepting commissions in California as long as the appropriate disclosures are adhered to. Thus, the approval of commissions contingent on clear disclosure aligns the practice with ethical standards and client protections.