What must a CPA disclose if referred clients by a CFA member?

When a CPA receives referrals from a CFA member, it is essential for the CPA to maintain transparency and uphold ethical standards. The correct answer emphasizes the importance of disclosing both the nature of the services provided and their estimated value. This disclosure allows for clear communication between the CPA and their clients, promoting trust and ensuring that clients are fully informed about the potential implications of the referral.

By disclosing the services and their estimated value, the CPA demonstrates adherence to ethical guidelines that prioritize the client's best interests and the integrity of the profession. This practice not only fosters transparency but also helps to mitigate potential conflicts of interest. Such disclosures support the principle that clients have the right to be aware of the relationship between the CPA and the CFA member, which could influence the advisory services they receive. Thus, the requirement for a detailed disclosure aligns with the ethical standards aimed at protecting consumer interests in financial services.