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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. Read More.

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IESBA Releases Exposure Draft to Improve Independence Standard

Addressing stakeholder concerns about independence and ensuring threats caused by the long association of audit firm personnel with an audit client receive attention on audit engagements, the International Ethics Standards Board for Accountants (“IESBA”) has released Proposed Changes to Certain Provisions of the Code Addressing the Long Association of Personnel with an Audit or Assurance Client. Issued as an exposure draft for public comment, the IESBA’s proposal focuses on threats associated with familiarity and self-interest, which could occur from a long association with the audit client and fears of losing the client. Changes proposed to the Code of Ethics for Professional Accountants consist. Read More.

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