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Exposure Draft Issued for “Client” & “Client Attest” Definition Updates

An exposure draft on potential updates to the definitions of “client” and “client attest” in the American Institute of Certified Public Accountants (“AICPA”) Code of Professional Conduct has been published by the AICPA’s Professional Ethics Executive Committee. Issued as Proposed Revised Definitions of Client and Attest Client, the proposed revision to “client” would clarify in situations when a company that maintains a licensee to perform a professional service is not the same company tied to the professional service, both companies should be treated as separate clients. The basic definition of “client” would remain as is.

In addition, the exposure draft proposes updating the “attest client” definition to clarify that only the subject entity is an attest client.

Comments on the exposure draft are due May 15, 2017.

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