Wes Smith, CFA, refers many of his clients to Bill Towers, CPA, for
accounting services. In return, Towers performs routine services for Smith, such
as his tax returns, for no charge. With respect to this relationship, Smith:
A)
must disclose to his clients that Towers provides services for Smith's
personal benefit.
B)
is in violation of both Standard V(B) and III(B).
C)
is only in violation of Standard III(B), Fair Dealing, by not putting the
client first.
According to VI(C), Referral Fees, Smith must
disclose to his clients that Towers provides services for Smith’s personal
benefit. Neither of the Standards listed in the other answers apply.
