61H1-21.003: Commissions or Referral Fees
PURPOSE AND EFFECT: The Board proposes the rule amendment in order to clarify language concerning the certified public accountant.
SUMMARY: Language concerning the certified public accountant will be clarified.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared. The Board determined the proposed rule will not have an impact on small business.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 473.304, 473.3205 FS.
LAW IMPLEMENTED: 473.3205 FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN FAW.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Veloria Kelly, Division Director, Board of Accountancy, 240 N.W. 76th Dr., Suite A, Gainesville, Florida 32607
THE FULL TEXT OF THE PROPOSED RULE IS:
61H1-21.003 Commissions or Referral Fees.
(1) A certified public accountant CPA 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(7)(a), F.S., or prohibited to non-certified public accountants CPAs as listed in Section 473.322, F.S. 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(7)(a) and Section 473.322, F.S.
(2) The certified public accountant CPA must have an engagement letter signed by the client prior to beginning any engagement for which the certified public accountant CPA 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 CPA must hold appropriate licenses as required.
(4) If the certified public accountant CPA is not independent as described in Rule 61H1-21.001, F.A.C., it must be disclosed in the engagement letter. However, if the only reason for not being independent is the fact that the cCertified pPublic aAccountant is being compensated by a commission or contingent fee then the lack of independence does not have to be disclosed.
Rulemaking Specific Authority 473.304, 473.3205 FS. Law Implemented 473.3205 FS. HistoryNew 12-4-79, Formerly 21A-21.03, Amended 3-28-89, Formerly 21A-21.003, Amended 2-23-98, 8-16-99,_________.
