unit 32 Ethics Help- introducing clients

Soph06

Hi

I'm a bit stuck on this question. If anyone can offer any thoughts/comments it would be appreciated.

Why is it unnacceptable under AAT guidelines on PET 'if you introduce other clients to us we will reduce your fee'.

My mind has gone a bit blank.

sdv

One of the codes of ethics is Independence

From http://www.answers.com/topic/ethics-in-accounting

“Maintaining integrity and objectivity calls for avoiding both actual and apparent conflicts of interest. This notion is termed independence.

Being independent in fact and in appearance means that one not only is unbiased, impartial, and objective but also is perceived to be that way by others. “


If a client is paid a commission for introducing business to the practice, then the accountant has effectively lost his independence for that particular client.

The accountant is in danger of being objective, unbiased, and impartial when reporting on that’s clients accounts. Particularly if that client has introduced a very important customer in terms of status or financial income.

Soph06

thanks sdv. your comments were helpful.