If I audit a corporation, am I also prevented from offering services to the executives, board members, shareholders, or retirement plans of that entity?
The AICPA’s Professional Ethics division has proposed a liberal interpretation of defining who the client is, for purposes of determining when the CPA can provide commission-based services consistent with Rule 503. Specifically, the AICPA proposal states that the client for purposes of interpreting Rule 503 is the legal entity for whom the attest service is provided. For instance, if a CPA audits a company, he/she can still provide commission-based services to the officers, board members, shareholders, and retirement plans for the company, provided he/he does not provide a direct attest service to those individuals or plans.
Related Questions
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- If I audit a corporation, am I also prevented from offering services to the executives, board members, shareholders, or retirement plans of that entity?
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