Question

Why do restrictions exist on advertising and solicitation practices?

a) Impair independence when also providing attest services for the client
b) Involve contingent fee payments
c) Involve referral fees
d) May lead a reasonable person to misunderstand or be deceived by the nature of the services

Answer 1

Restrictions on advertising and solicitation practices exist to protect the independence and integrity of professionals, prevent conflicts of interest, and ensure consumer protection.

Step-by-step explanation:

Restrictions exist on advertising and solicitation practices for several reasons:

1. Impair independence when providing attest services for the client: Advertising and solicitation practices could compromise the impartiality and objectivity of professionals, especially those who also provide attest services for their clients.
2. Involve contingent fee payments: Advertising and solicitation practices that include contingent fee payments, where compensation is based upon successful outcomes, can create conflicts of interest and compromise the integrity of the services provided.
3. Involve referral fees: Advertising and solicitation practices that provide referral fees could create incentives for professionals to prioritize their own financial gain over the best interests of their clients.
4. May lead a reasonable person to misunderstand or be deceived by the nature of the services: Restrictions on advertising and solicitation practices aim to protect consumers and prevent misleading or deceptive advertising that could misrepresent the nature of the services offered.