288 Neb. Admin. Code, ch. 5, § 005

Current through September 17, 2024

Section 288-5-005 - Responsibility to Clients

005.01 Confidential Client Information

A licensee shall not disclose any confidential information obtained in the course of performing professional services except with the consent of the client. Provided, however, this rule shall not be construed:

005.01A to relieve the licensee of his obligations under 288 NAC 5-004.02 and 004.03 relating to auditing standards and accounting principles;

005.01B to affect in any way his compliance with the validly issued subpoena or summons enforceable by order of any Court or agency;

005.01C to prohibit review of the licensee's professional practices as a part of voluntary quality review under Board authorization; or

005.01D to preclude a licensee from responding to any inquiry made by the Board or by an authorized investigative or disciplinary body, which in the opinion of the Board is duly constituted.

The Board shall not disclose any confidential client information which comes to its attention from licensees involved in disciplinary proceedings or otherwise in carrying out its official responsibilities, providing, however, this prohibition shall not restrict the exchange of information with any authorized and duly constituted investigative or disciplinary body.

005.02 Records

A licensee shall furnish to his client or former client, regardless of unpaid fees outstanding, upon request made within a reasonable time after original issuance of the document:

005.02A a copy of a tax return of the client;

005.02B a copy of any report; or other document, issued by the licensee to or for such client;

005.02C any accounting or other records belonging to, or obtained from or on behalf of, the client which the licensee removed from the client's premises or received for the client's account, but the licensee may make and retain copies of such documents when they form the basis for work done by him; and

005.02D a copy of the licensee's working papers, to the extent that such working papers include records which would ordinarily constitute part of the client's books and records and are not otherwise available to the client.

005.02E the licensee may charge reasonable expenses for furnishing the records.

005.03 Contingent Fees

A licensee in public practice shall not:

005.03A Perform for a contingent fee any professional services for, or receive such a fee from a client for whom the licensee or the licensee's firm performs

005.03A1 an audit or review of a financial statement; or

005.03A2 a compilation of a financial statement when the licensee expects, or reasonably might expect, that a third party will use the financial statement and the licensee's compilation report does not disclose a lack of independence; or

005.03A3 an examination of prospective financial information; or

005.03B Prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client.

The prohibition in 005.03A above applies during the period in which the licensee or the licensee's firm is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in any such listed services.

Except as stated in the next sentence, a contingent fee is a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained, or in which the amount of the fee is otherwise dependent upon the finding or result of such service. Solely for purposes of this rule, fees are not regarded as being contingent if fixed by courts or other public authorities, or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies.

Any licensee who accepts a contingent fee or expects to be paid a contingent fee shall provide written disclosure of such acceptance or payment and the basis for determining such fee to the client.

Written disclosure statements, as set forth by Attachment 1 to this Chapter, are to be executed in duplicate, with a receipt acknowledgement signed and dated by the client, and maintained by the licensee for a period of five years. Licensees are subject to a random audit by the Board or its designee for compliance with the written disclosure provisions of this rule.

A licensee's fees may vary depending, for example, on the complexity of services rendered.

288 Neb. Admin. Code, ch. 5, § 005