Florida Regulations 61H1-21.003: Commissions or Referral Fees
Current as of: 2024 | Check for updates
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(1) A certified public accountant shall not pay or accept a commission or referral fee in connection with the sale of a product or referral of any services as defined in Section 473.302(8)(a) and (c), F.S., or prohibited to non-certified public accountants as listed in Florida Statutes § 473.322 These services include:
(a) Audit, review or compilation services.
(b) Services for any prospective financial data including forecasts or projections.
(c) Any special procedures engagement resulting in an expression of an opinion when the services fall within the definitions as set forth in Section 473.302(8)(a) and (c) and Florida Statutes § 473.322
(2) The certified public accountant must have an engagement letter signed by the client prior to beginning any engagement for which the certified public accountant will receive a commission. The letter must include complete details of the financial arrangements involving compensation for the services rendered.
(3) The certified public accountant must hold appropriate licenses as required.
(4) If the certified public accountant is not independent as described in Fl. Admin. Code R. 61H1-21.001, it must be disclosed in the engagement letter. However, if the only reason for not being independent is the fact that the certified public accountant is being compensated by a commission or contingent fee then the lack of independence does not have to be disclosed.
Rulemaking Authority 473.304, 473.3205 FS. Law Implemented Florida Statutes § 473.3205. History-New 12-4-79, Formerly 21A-21.03, Amended 3-28-89, Formerly 21A-21.003, Amended 2-23-98, 8-16-99, 12-21-09.
(b) Services for any prospective financial data including forecasts or projections.
(c) Any special procedures engagement resulting in an expression of an opinion when the services fall within the definitions as set forth in Section 473.302(8)(a) and (c) and Florida Statutes § 473.322
(2) The certified public accountant must have an engagement letter signed by the client prior to beginning any engagement for which the certified public accountant will receive a commission. The letter must include complete details of the financial arrangements involving compensation for the services rendered.
(3) The certified public accountant must hold appropriate licenses as required.
(4) If the certified public accountant is not independent as described in Fl. Admin. Code R. 61H1-21.001, it must be disclosed in the engagement letter. However, if the only reason for not being independent is the fact that the certified public accountant is being compensated by a commission or contingent fee then the lack of independence does not have to be disclosed.
Rulemaking Authority 473.304, 473.3205 FS. Law Implemented Florida Statutes § 473.3205. History-New 12-4-79, Formerly 21A-21.03, Amended 3-28-89, Formerly 21A-21.003, Amended 2-23-98, 8-16-99, 12-21-09.