MODULE 21 PROFESSIONAL RESPONSIBILITIES 55

19. A member's spouse may provide services to a
mem-
ber's attest client for a contingent fee and may refer
products or services for a commission.
20. When a member learns of a potential claim against
him/her, the member may release confidential client
information to member's liability carrier used solely
to defend against claim.
21. Identical to Ruling 99 under Rule 102.
22. A member may disclose confidential client informa-
tion to the member's attorney or a court in connection
with actual or threatened litigation.
23. A member's fee for investment advisory services
for
an attest client that is based on a percentage of the
portfolio would be considered contingent and a vio-
lation of Rule 302, unless
24. The fee is determined as a specified
percentage
of the portfolio,
25. The dollar amount of the portfolio is
determined
at the beginning of each quarterly period (or
longer) and is adjusted only for additions or
withdrawals by the client, and
26. The fee arrangement is not renewed with
the cli-
ent more frequently than on a quarterly basis.
27. A member who provides for a contingent fee invest-
ment advisory service, or refers for a commission
products or services to the owners, officers, or em-
ployees of an attest client would not violate Rule 302
with respect to the client.

Rule 501 Acts Discreditable. A member shall not commit an act discreditable to the profession.
Interpretation 501-1. Retention of. client records after client has demanded them is discreditable.
(1) A CPA may keep analyses and schedules prepared by the client for the CPA and need not
make them available to the client.
(2) A CPA may keep workpapers with information not reflected in the client's books (adjusting,
closing, consolidating entries, etc.) until payment of fees due is received. ,.
Interpretation 501-2. Discrimination on basis of race, col or, religion, sex, age, or national origin
is discreditable.
Interpretation 501-3. In audits of governmental grants, units, or other recipients of governmental
. monies, failure to follow appropriate governmental standards, procedures, etc. is discreditable.
Interpretation 501-4. Negligently making (or permitting or directing another to make) false or
misleading journal entries is discreditable.
Interpretation 501-5. When a governmental body, commission, or other regulatory agency has
requirements beyond those required by GAAS, members are required to follow. them.
(1) Failure to follow these requirements is considered an act discreditable to the profession, unless
the member discloses in the report that such requirements were not followed and the
reasons
therefor. .
Interpretation 501-6. Member who solicits or discloses May 1996 or later Uniform CPA Exami-
nation question(s) and/or answeris) without AICPA written authorization has committed an act
discreditable to profession in violation of Rule 501.
Interpretation 501-7. A member who fails to comply with applicable federal, state, or local laws
and regulations regarding the timely filing of his or her personal tax returns, or the timely remit-
tance of all payroll and other taxes collected on behalf of others has committed an act discreditable
to the profession.
Interpretation SOl-B. In some engagements, government regulators prohibit indemnification or
limitation of liability agreements. If the CPA engages in such agreements when they are
prohibited, he or she ha:s committed an act discreditable to the profession. '
Rule 502 Advertising and Other Forms of Solicitation. In public practice, shall not seek to ob-
tain clients by false, misleading, deceptive advertising or other forms of solicitation.
Interpretation 502-1. (Deleted)
Interpretation 502-2. Advertising that is false, misleading or deceptive is prohibited, including
advertising that
(1) Creates false or unjustified expectations
(2) Implies ability to influence a court, tribunal, regulatory agency or similar body or official