Academic journal article Journal of Accountancy

Ethics Rulings

Academic journal article Journal of Accountancy

Ethics Rulings

Article excerpt

Ethics interpretations and rulings are promulgated by the executive committee of the professional ethics division to provide guidelines as to the scope and application of the rules but are not intended to limit such scope or application. Publication of an interpretation or ethics ruling in the Journal of Accountancy constitutes notice to members. A member who departs from interpretations or rulings shall have the burden of justifying such departure in any disciplinary hearing.

RULING 140. 19 UNDER RULE OF

CONDUCT 302 AND RULING

NO. 187 UNDER RULE OF

CONDUCT 503--RECEIPT OF

CONTINGENT FEES OR

COMMISSIONS BY MEMBER'S

SPOUSE

Question--May a member's spouse provide services to the members attest client for a contingent fee or refer products or services for a commision to or from the members attest client without causing the member to be in violation of rule 302 or rule 503?

Answer--Yes, if the activities of the member's spouse are separate from the members practice and the member is not significantly involved in those activities. The member, however, should consider whether a conflict of interest may exist as described in rule 102 ([AICPA Professional Standards] ET section 102.01) and interpretation 102-2 (ET section 102.03).

RULING NO. 188 UNDER RULE

OF CONDUCT 503-REFERRAL

OF PRODUCTS OF OTHERS

Question--A member refers computer products of wholesalers to clients of the firm through distributors and agents. …

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