58-26a-502 - Unprofessional conduct. - Utah Statutes

58-26a-502. Unprofessional conduct.
(1) "Unprofessional conduct" includes:
(a) undertaking an engagement when the licensee knows or should know that the licenseecould not reasonably expect to complete it with professional competence;
(b) making unauthorized disclosures of confidential information obtained in the practiceof public accountancy;
(c) engaging in any business or activity that creates a conflict of interest with a licensee'spractice in the profession when the licensee knows or should know that it is a conflict of interestand 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 reviewrequired under this chapter; or
(e) issuing a report on financial statements of a client, other than a report in which a lackof independence is disclosed, or performing an attest engagement subject to the attestationstandards of the American Institute of Certified Public Accountants when the licensee is notindependent, in fact and appearance, to the client.
(2) (a) A licensee may not, for a commission, recommend or refer to a client a product orservice, or for a commission recommend or refer a product or service to be supplied by a client,or receive a commission, when the licensee also performs for that client:
(i) an audit or review of a financial statement;
(ii) a compilation of a financial statement when the licensee expects, or reasonably mightexpect, that a third party will use the financial statement and the licensee's compilation reportdoes not disclose a lack of independence; or
(iii) an examination of prospective financial information.
(b) The prohibition under Subsection (2)(a) applies during:
(i) the period in which the licensee is engaged to perform any of the services listed inSubsection (2)(a); and
(ii) the period covered by any historical financial statements involved in any such listedservices.
(c) A licensee who is not prohibited under Subsection (2)(a) from performing services orreceiving a commission and who is paid or expects to be paid a commission shall disclose thatfact to any person or entity to whom the licensee recommends or refers a product or service towhich the commission relates.
(d) A licensee who accepts a referral fee for recommending or referring a service of alicensee to a person or entity or who pays a referral fee to obtain a client shall disclose theacceptance or payment to the client.
(3) (a) A licensee may not:
(i) perform for a contingent fee a professional service for, or receive a contingent feefrom a client for whom the licensee or the licensee's firm performs:
(A) an audit or review of a financial statement;
(B) a compilation of a financial statement when the licensee expects, or reasonably mightexpect, that a third party will use the financial statement and the licensee's compilation reportdoes not disclose a lack of independence; or
(C) an examination of prospective financial information; or
(ii) prepare an original or amended tax return or claim for a tax refund for a contingentfee for a client.

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(b) The prohibition in Subsection (3)(a) applies during:
(i) the period in which the licensee is engaged to perform any of the services listed inSubsection (3)(a); and
(ii) the period covered by any historical financial statements involved in the listedservices.
(c) Except as stated in Subsections (3)(d) and (e), a contingent fee is a fee established forthe performance of a service pursuant to an arrangement in which no fee will be charged unless aspecified finding or result is attained, or in which the amount of the fee is otherwise dependentupon the finding or result of the service.
(d) Solely for the purposes of this Subsection (3), fees are not regarded as beingcontingent if fixed by courts or other public authorities, or in tax matters, if determined based onthe results of judicial proceedings or the findings of a governmental agency.
(e) A licensee's fee may vary depending, for example, on the complexity of servicerendered.

Amended by Chapter 265, 2008 General Session