Michigan Laws 339.730 – Contingent fee
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(1) Except as otherwise provided in this section, a certified public accountant may charge or receive a contingent fee.
(2) A licensee shall not charge or receive a contingent fee from a client during the period in which a licensee or a licensee’s firm is engaged to perform for the client 1 or more of the following services or during the period of time covered by any of such client’s historical financial statements involved in those services:
Terms Used In Michigan Laws 339.730
- Certified public accountant: means an individual who is either of the following:
(i) Qualified by education, examination, and experience to engage or offer to engage in the practice of public accounting as evidenced by the issuance of a certificate as a certified public accountant under section 725 or 726 and a license or registration issued under section 727. See Michigan Laws 339.720Client: means an individual or entity that engages a licensee or licensee's employer to receive any service in the practice of public accounting. See Michigan Laws 339.720 Compilation: means providing a service to be performed in accordance with statements on standards for accounting and review services that are presenting, in the form of financial statements, information that is the representation of management or owners without undertaking to express any assurance on the statements. See Michigan Laws 339.720 Dependent: A person dependent for support upon another. Firm: means a corporation, partnership, limited liability company, unincorporated association, sole proprietorship operating under an assumed name, or other legal entity. See Michigan Laws 339.720 Report: when used with reference to an attest or compilation service, means an opinion, report, or other form of language that states or implies assurance as to the reliability of attested information or compiled financial statements and that also includes, or is accompanied by, any statement or implication that the individual or firm issuing it has special knowledge or competence in accounting or auditing. See Michigan Laws 339.720
(a) An audit or review of a financial statement.
(b) A compilation of a financial statement when the licensee expects, or may reasonably expect, that a third party will use the financial statement and that the compilation report does not disclose a lack of independence.
(c) An examination of prospective financial information.
(3) A licensee shall not charge or receive a contingent fee for the preparation of an original or amended tax return or claim for a tax refund.
(4) As used in this section, “contingent fee” means a fee established for the performance of a service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained or in an arrangement where the amount of the fee is dependent upon a finding or result of the service. Contingent fee does not include a fee fixed by a court or other public authority and, in tax matters, a fee determined based upon the results of judicial proceedings or the findings of a governmental agency.