Final answer:
CPAs have an ethical obligation to disclose any commission they receive from providing services to their clients. By being transparent about commissions, CPAs uphold professional standards and maintain the trust of their clients. This ensures that the CPA's recommendations are based on the client's best interests.
Step-by-step explanation:
If a CPA charges a commission for any service, what is their obligation to tell the client about the commission?
CPAs have an ethical obligation to disclose any commission they receive from providing services to their clients. The obligation stems from the principle of integrity, which requires CPAs to be honest and transparent with their clients. By disclosing the commission, CPAs ensure that clients are fully aware of all costs associated with the services provided.
For example, if a CPA recommends a certain investment to a client and receives a commission from the investment company, the CPA must disclose this fact to the client. This allows the client to make an informed decision and evaluate the CPA's advice objectively.
By being transparent about commissions, CPAs uphold professional standards and maintain the trust of their clients. It also helps prevent conflicts of interest and ensures that the CPA's recommendations are based on the client's best interests rather than personal financial gain.