061-6 Wyo. Code R. § 6-2

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Current through April 27, 2019

Section 6-2 - Independence, Integrity and Objectivity

(a) Independence Rule. A holder shall be independent in the performance of professional services as required by:

(i) standards promulgated by the AICPA Code of Professional Conduct, ET Section 55 and ET Section 101;

(ii) the Government Auditing Standards, Yellow Book ;

(iii) the standards issued by the PCAOB where applicable;

(iv) the standards issued by the US Department of Labor 29CFR 2509.75-9 where applicable;

(v) the standards issued by the IASB; and

(vi) similar other entities having generally recognized authority.

(b) Integrity and Objectivity Rule. In the performance of any professional service, a holder shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgment to others.

(c) Commissions Rule. A holder shall not pay a commission to obtain a client or accept a commission from or on behalf of a client when the holder also performs for that client:

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

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

(iii) an examination of prospective financial information; or

(iv) any other service requiring independence.

(d) Contingent Fees Rule. 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; or fees from services performed for other non-attest clients.

(i) A holder shall not offer to perform or perform professional services for a fee which is contingent upon the findings or results of such services when providing any of the services listed in subsection (c)(i) through (iv) of this section.

(ii) A holder shall not prepare an original or amended tax return or claim for a tax refund for a contingent fee for any client.

(e) Referral Fees. A holder may accept or pay a referral fee for the sale of services or products to a client if the holder does not perform any of the services listed in subsection (c)(i) through (iv) of this section.

(f) The prohibitions listed in subsections (c), (d) and (e) of this section shall apply during the period in which the holder is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in the listed services.

(g) Disclosure of permitted commissions, contingent fees, or referral fees. A holder who is not prohibited by these rules from performing services or receiving commissions, contingent fees, or referral fees and who expects to be paid the fee shall make written disclosure in advance of accepting the engagement.

(h) This rule does not prohibit payments for the purchase of all, or a material part, of an accounting practice, or retirement payments to persons formerly engaged in the practice of public accounting, or payments to the heirs or estates of such persons.

061-6 Wyo. Code R. § 6-2