Mary,a CPA,accepted a Fee from Rajiv,a CPA,for Referring One of Mary's

question 30

Multiple Choice

Mary,a CPA,accepted a fee from Rajiv,a CPA,for referring one of Mary's clients to him.Mary's client was not informed of this referral fee.Was Mary's acceptance of this fee permitted by applicable professional rules?

• A) Yes, if Rajiv possesses specialized skills that Mary lacked
• B) Yes, if Rajiv possesses specialized skills that Mary lacks and Rajiv agreed to a non-contingent referral fee arrangement with Mary prior to provide services to the referred client
• C) Yes, as long Mary's fee arrangement is a lump-sum amount rather than a percentage of the amount that Rajiv bills this client for his services
• d) No