2005 Idaho Code - 54-218 — ACCEPTANCE OF COMMISSIONS AND CONTINGENT FEES

                                  TITLE  54
                    PROFESSIONS, VOCATIONS, AND BUSINESSES
                                  CHAPTER 2
                                 ACCOUNTANTS
    54-218.  ACCEPTANCE OF COMMISSIONS AND CONTINGENT FEES. (1) A licensee may
accept a commission or referral fee unless prohibited by this section.
    (a)  A licensee 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 the licensee's firm also performs for that client:
         (i)   An attest service; or
         (ii)  A compilation when the licensee expects, or reasonably might
         expect, that a third party will use the compilation and the
         compilation report does not disclose a lack of independence.
    (b)  A licensee who is not prohibited by this section from performing
    services for or receiving a commission and who is paid or expects to be
    paid a commission shall disclose in writing that fact to any person or
    entity to whom the licensee recommends or refers a product or service to
    which the commission relates.
    (c)  Any licensee who accepts a referral fee for recommending or referring
    any service of a licensee to any person or entity or who pays a referral
    fee to obtain a client shall disclose such acceptance or payment to the
    client in writing.
    (2)  A licensee may accept a contingent fee which is disclosed to the
client in writing unless prohibited by this section.
    (a)  A licensee shall not perform for a contingent fee any professional
    service for, or receive such a fee from, a client for whom the licensee or
    the licensee's firm performs:
         (i)   An attest service; or
         (ii)  A compilation, when the licensee expects, or reasonably might
         expect, that a third party will use the compilation and the
         compilation report does not disclose a lack of independence.
    (b)  A licensee shall not prepare an original or amended tax return or
    claim for a tax refund for a contingent fee for any client.
    (c)  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
    section, fees shall not be regarded as 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.
    A licensee's fees may vary depending, for example, on the complexity of
    services rendered.
    (3)  The prohibitions contained in this section shall apply during the
period in which the licensee is engaged to perform any of the services listed
herein and the period covered by any historical financial statements involved
in any such listed services.