(1) A licensee may accept a commission or referral fee unless prohibited by this section.
(a)  A licensee shall not for a commission recommend or refer to a client any product or service, or for a commission recommend or refer any product or service to be supplied by a client, or receive a commission, when the licensee or the licensee’s firm also performs for that client:
(i)   An attest service; or
(ii)  A compilation when the licensee expects, or reasonably might expect, that a third party will use the compilation and the compilation report does not disclose a lack of independence.
(b)  A licensee who is not prohibited by this section from performing services for or receiving a commission and who is paid or expects to be paid a commission shall disclose in writing that fact to any person or entity to whom the licensee recommends or refers a product or service to which the commission relates.
(c)  Any licensee who accepts a referral fee for recommending or referring any service of a licensee to any person or entity or who pays a referral fee to obtain a client shall disclose such acceptance or payment to the client in writing.
(2)  A licensee may accept a contingent fee which is disclosed to the client in writing unless prohibited by this section.
(a)  A licensee shall not perform for a contingent fee any professional service for, or receive such a fee from, a client for whom the licensee or the licensee’s firm performs:
(i)   An attest service; or
(ii)  A compilation, when the licensee expects, or reasonably might expect, that a third party will use the compilation and the compilation report does not disclose a lack of independence.
(b)  A licensee shall not prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client.
(c)  Except as stated in the next sentence, a contingent fee is a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service. Solely for purposes of this section, fees shall not be regarded as contingent if fixed by courts or other public authorities or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies. A licensee’s fees may vary depending, for example, on the complexity of services rendered.

Terms Used In Idaho Code 54-218

  • Attest: means providing the following professional services:
Idaho Code 54-206
  • Client: means the person or entity that agrees with a licensee or licensee’s employer to receive any professional services with or without compensation and shall include all affiliates and related entities in the financial statements of an attest or compilation engagement. See Idaho Code 54-206
  • Compilation: means a service performed in accordance with statements on standards for accounting and review services that presents, in the form of historical or prospective financial statements, information that is the representation of management or owners without undertaking to express any assurance on the statements. See Idaho Code 54-206
  • Dependent: A person dependent for support upon another.
  • Financial statements: means a presentation of historical or prospective financial data, which may include accompanying notes, intended to communicate an entity’s economic resources or obligations at a point in time, or the changes therein for a period of time, in accordance with a comprehensive basis of accounting. See Idaho Code 54-206
  • Firm: means a proprietorship, partnership, professional corporation, professional limited liability company, or any other form of professional organization permitted by Idaho law, registered under the requirements of section 54-214, Idaho Code. See Idaho Code 54-206
  • Licensee: means the holder of a current valid license. See Idaho Code 54-206
  • Person: means any natural living person. See Idaho Code 54-206
  • report: includes any form of language that disclaims an opinion when such form of language is conventionally understood to imply any positive assurance as to the reliability of the financial statements referred to or special competence on the part of the person or firm issuing such language; and it includes any other form of language that is conventionally understood to imply such assurance or special knowledge or competence. See Idaho Code 54-206
    • (3)  The prohibitions contained in this section shall apply during the period in which the licensee is engaged to perform any of the services listed herein and the period covered by any historical financial statements involved in any such listed services.