Susan Small,CPA Has Medium Corporation as an Audit Client

question 35

Essay

Susan Small,CPA has Medium Corporation as an audit client.Medium has asked Small to create and install a new computerized payroll system.Because Small does not have the appropriate level of expertise,she referred Medium to Compusystems,Inc.,a local software consulting company.Small has an arrangement where she is paid ten percent of any fee received by Compusystems from her referrals.Small has disclosed this to her client.
Required: The situation above involves a possible violation of the AICPA's Code of Professional Conduct.State the rule in question and explain why or why not there is a violation of the code.You need not refer to the rule number,but should clearly describe the rule in question.

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Definitions:

Claims

Statements or assertions, often supported by evidence, made to support arguments or positions in various contexts.

Adjustments

Changes or modifications made to improve a situation, process, or product, or to correct errors.

Faulty Merchandise

Products that have defects or do not meet the quality or performance standards.

Positive Message

Communication that focuses on positive aspects, often intended to motivate or encourage.