2006 Utah Code - 58-26a-502 — Unprofessional conduct.

     58-26a-502.   Unprofessional conduct.
     (1) "Unprofessional conduct" includes:
     (a) undertaking an engagement when the licensee knows or should know that the licensee could not reasonably expect to complete it with professional competence;
     (b) making unauthorized disclosures of confidential information obtained in the practice of public accountancy;
     (c) engaging in any business or activity that creates a conflict of interest with a licensee's practice in the profession when the licensee knows or should know that it is a conflict of interest and the licensee does not fully disclose the conflict of interest in writing to all affected parties;
     (d) failing to meet the requirements for continuing professional education or peer review required under this chapter;
     (e) issuing a report on financial statements of a client, other than a report in which a lack of independence is disclosed, or performing an attest engagement subject to the attestation standards of the American Institute of Certified Public Accountants when the licensee is not independent, in fact and appearance, to the client; or
     (f) receiving compensation, including a commission, for referring or selling services or products of others to a client during the period:
     (i) that the licensee or CPA firm is engaged by the client for purposes of:
     (A) an audit or review of a financial statement;
     (B) a compilation of a financial statement when the licensee or his firm expects, or reasonably might expect, that a third party will use the financial statement and the compilation report and the report does not describe a lack of independence; or
     (C) an examination of prospective financial information; or
     (ii) covered by any historical financial statements involved with any of the services listed in Subsection (1)(f)(i).
     (2) (a) Notwithstanding the provisions of Subsection (1)(f), a licensee or CPA firm that is not prohibited by Subsection (1)(f) from receiving other compensation, including a commission, may receive or agree to receive that other compensation for referral or sale of services or products of others to another person if:
     (i) he discloses in writing the nature, source, and amount of all other compensation prior to making the referral or sale by the licensee or CPA firm; and
     (ii) the receipt of the compensation complies with all of the other requirements of this section.
     (b) Subsection (1)(f) does not apply to payments received from the sale of an accounting practice or to retirement payments to persons formerly engaged in the practice of public accountancy.

Enacted by Chapter 261, 2000 General Session