Commissions

In the following circumstances, use the AICPA rules for commissions and the CA CPA rules for commissions to explain when you could take a commission or not.Also, explain the reasoning why or why not the AICPA and CA would or would not allow a commission for this type of service.If you can take the commissions, state how can that be accomplished in the rules.

The accounting firm A has three CPAs.One CPA has an insurance license.The second CPA is an RIA (registered investment advisor).The third CPA is also an ABV (accredited in business valuation).

1. Client K wants a compilation, tax preparation and has a 401(k) plan administrated from Firm A(with commissions).

2. Client L engages Firm A for tax preparation of a business partnership and pays a commission on buy/sell insurance from Firm A.

3. Client M is an audit client, needs a valuation for gift tax and wants to pay a commission on recommending a new corporate controller to the Client M.

4.A payroll service wants you to sign up to receive commissions for referral of clients.

5.An accounting software package will pay you a commission for referral of clients.

6. An accounting platform wants to give you leads to new clients and they will set the price and take 25% for bookkeeping and tax work.