What are the major ethical rules of the CPA profession that cover my obligations to clients if I expand into financial services and receive compensation for these services?
In 1993 and 1994, the Executive Committee of the AICPA’s Personal Financial Planning Division issued three advisory statements that serve as official guidance to CPAs involved in personal financial planning. Collectively, they are called the “statements on responsibility.” Statement No. 1 defined engagement objectives and how recommendations should be formed and communicated. Statement No. 2 described how CPAs should work with non-CPA advisers, including requirements to inform clients in writing of the specific role each adviser will play. Statement No. 3 specified that CPAs should create a written implementation agreement with each client. Collectively, these statements strongly discourage CPAs from “handing off” clients to other advisers and then receiving compensation. The CPA’s responsibility under these guidelines continues through the planning process and beyond. Rule 302 of the AICPA Code of Professional Conduct covers contingent fees, and Rule 503 covers commissions and referra
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