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AICPA Committee Proposes Interpretation for Long Association

As part of its convergence project with the International Ethics Standards Board for Accountants, the American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee has released the exposure draft, Proposed Interpretation –Long Association of Senior Personnel With an Attest Client). The proposal concerns independence threats when an attest client has a long association with senior personnel.

The Committee’s proposed Interpretation would state that an AICPA member’s lengthy inclusion among the attest engagement team’s senior personnel could cause a familiarity threat with the attest client. The familiarity threat could also extend to the team’s operations, senior management of the client, the attest engagement’s subject matter, and financial statements in which the firm must disclose its viewpoint or the financial information that creates the starting point of the financial statements.

Comments on the proposal are due Friday, September 15. Read the full exposure draft on AICPA.org.

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