30 Miss. Code. R. 1-6.6

Current through December 10, 2024

Rule 30-1-6.6 - Commission

Rule 6.6.1. A CPA or firm permit holder shall neither pay any consideration or commission to obtain a client, nor accept any consideration or commission for the referral of a client to others, nor 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 CPA or the CPA firm also performs for that client any of the following:

(a) an audit or review of a financial statement;

(b) a compilation of a financial statement when the CPA or firm permit holder expects, or reasonably might expect, that a third party will use the financial statement and the compilation report does not disclose a lack of independence;

(c) an examination of prospective financial information; or

(d) any other service requiring independence.

This prohibition applies during the period in which the CPA or firm permit holder is engaged to perform any of the services listed above and the period covered by any historical financial statements involved.

Rule 6.6.2. A CPA or firm permit holder who is not prohibited by this rule from performing services for or receiving a commission and who is paid or expects to be paid a commission shall disclose that fact to any person or entity to whom the CPA or firm permit holder recommends or refers a product or service to which the commission relates and in compliance with these Rules and Regulations.

Rule 6.6.3. A CPA or firm permit holder who accepts consideration or a commission for a referral shall disclose such acceptance or payment to the client in compliance with the requirements of Rule 6.6.5. of these Rules and Regulations.

Rule 6.6.4. This rule shall not prohibit payments for the purchase of all, or a material part of, an accounting practice, non-compete agreements, or retirement payments to individuals formerly engaged in the practice of public accounting or payments to their heirs and estates.

Rule 6.6.5. Disclosures of commissions for the recommendation or referral of a product or service to client(s) or considerations or commissions to a client for a referral shall include the minimum disclosures in accordance with the following.

(a) be in writing, be clear and conspicuous;

(b)state the amount of the consideration or commission or the basis on which it will be computed;

(c) be made at or prior to the time of the recommendation or referral of the product or service for which consideration or commission is paid or prior to the client retaining the CPA or firm permit holder to whom the client has been referred for which a referral fee is paid; and

(d)be signed by both the CPA or firm permit holder and the client.

30 Miss. Code. R. 1-6.6

Miss. Code Ann. § 73- 33-5 (f)