[Manuelo]

I’m confused about contingent fees in AICPA and SEC.

AICPA rule 302 says Contingent fees are specifically disallowed in audits, reviews, examination of prospective financial information, or compilations where independence is not impaired, and are permitted in cases of court proceedings or findings of governmental agencies.

SEC says Independence is impaired when the accountant provides ANY service or product to the audit client for a contingent fee or commission.

So, just to clarify: if you are servicing an issuer (SEC applies), there is no contingency fees allowed WHATSOEVER.

If you are servicing a nonissuer (I’m assuming AICPA only applies to nonissuers), contingent fees are not allowed. The exceptions are the court proceeding cases or findings of governmental agencies.

What do you all think? Is my clarification correct?