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4-30-044  <<  4-30-045 >>   4-30-046

PDFWAC 4-30-045

Commission and referral fees.

(1) A licensee in public practice shall not 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 licensee or licensee's firm also performs for that client:
(a) An audit or review of a financial statement; or
(b) 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
(c) An examination of prospective financial information.
(2) This prohibition applies during the period in which the licensee is engaged to perform any of the services listed above and the period covered by any historical financial statements involved in such listed services.
(3) Any licensee who is not prohibited by this rule from performing services for, or receiving a commission or referral fee must:
(a) Disclose the arrangement in writing and in advance of client acceptance;
(b) Disclose the method of calculating the fee or amount of fee;
(c) Specify the licensee's role as the client's advisor; and
(d) Obtain the client's consent to the fee arrangement in writing.
(4) For the purposes of this rule, "licensees" includes licensees, CPA firms, nonlicensee firm owners, employees of such persons, out-of-state individuals with practice privileges under RCW 18.04.350(2), and out-of-state firms permitted to offer or render certain professional services in this state under the conditions prescribed in RCW 18.04.195.
[Statutory Authority: RCW 18.04.055. WSR 23-04-087, ยง 4-30-045, filed 1/31/23, effective 3/3/23.]
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