Comment Period for AICPA Ethics Board Proposal Ends Friday
Tomorrow is the last day to comment on an Exposure Draft by the American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee. The Exposure Draft, Proposed Interpretations — Responding to Non-Compliance with Laws and Regulations, introduces new interpretations of the AICPA Code of Processional Conduct. The proposed new interpretations are entitled “Responding to Non-Compliance with Laws and Regulations” (ET sec. 1.170.010 and 2.170.010) under the “Integrity and Objectivity Rule” (ET sec. 1.100.001 and 2.100.001), and will impact members in public practice and business.
The new interpretations offer guidance on a member’s responsibilities when handling non-compliance with regulations at a client or in the employing business. The main goal under the proposed interpretations for members dealing with non-compliance matters is to:
- Allow the client’s or employing business’ management and those with governance powers to resolve the non-compliance;
- Mitigate its impact; or
- Discourage the instruction of the non-compliance by notifying appropriate parties.