Article 3 of the California Accountancy Regulation permits a CPA licensed in a state other than California to perform public accountancy services in California. A CPA licensed in a state other than California would require approval from the California Board of Accountancy (CBA) to perform public accountancy services in California if (1) they have been formally declared guilty of a criminal offense, (2) they have been punished in a professional capacity, (3) they have pending charges of professional misconduct, and (4) they have a ruling against them in a court of law pertaining to professional conduct in the amount of $30,000 or more. In cases where prior approval is not necessary, the CPA licensed in a state other than California can begin
…show more content…
The permissible means of making this notification as described in Section 50 are place the license issued by the CBA in their office, giving a statement to each client to be signed and dated by the client and kept in that client's records that indicates the client comprehends the CPA is licensed by the CBA, putting a statement that the CPA is licensed by the CBA in the contract for services where the notice is located right above the signature line, displaying the notice in a visible area at the location where the CPA performs the public accountancy services that states the CPA is licensed by the CBA, and any other manner of written notice. Notifying clients that the CPA is licensed by the CBA is a requirement because it lets the client know that there is a regulatory authority that they can contact to confirm a license, determine if the CPA has ever been the subject of a disciplinary action, or file …show more content…
The client must be informed in writing that a commission for professional services will be paid by a third party, identify the name of the third party, describe the CPA's relationship with the third party, and indicate the amount of the commission to be paid. The regulations impose these restrictions because commissions may give the CPA financial interests that are not compatible with the client's interests and the CPA's objectivity may be compromised. The CPA should make sure that they are serving the client's interest and not accept any commission that compromises their independence, objectivity, or produces a conflict of
The permissible means of making this notification as described in Section 50 are place the license issued by the CBA in their office, giving a statement to each client to be signed and dated by the client and kept in that client's records that indicates the client comprehends the CPA is licensed by the CBA, putting a statement that the CPA is licensed by the CBA in the contract for services where the notice is located right above the signature line, displaying the notice in a visible area at the location where the CPA performs the public accountancy services that states the CPA is licensed by the CBA, and any other manner of written notice. Notifying clients that the CPA is licensed by the CBA is a requirement because it lets the client know that there is a regulatory authority that they can contact to confirm a license, determine if the CPA has ever been the subject of a disciplinary action, or file …show more content…
The client must be informed in writing that a commission for professional services will be paid by a third party, identify the name of the third party, describe the CPA's relationship with the third party, and indicate the amount of the commission to be paid. The regulations impose these restrictions because commissions may give the CPA financial interests that are not compatible with the client's interests and the CPA's objectivity may be compromised. The CPA should make sure that they are serving the client's interest and not accept any commission that compromises their independence, objectivity, or produces a conflict of