AICPA Committee Proposes Changes for Members in Business
The American Institute of CPAs’ (“AICPA”) Professional Ethics Executive Committee has proposed amendments to the interpretation of the “Knowing Misrepresentations in the Preparation of Financial Statements or Records” under the Code of Professional Conduct. Outlined in its exposure draft, Omnibus Proposal AICPA Professional Ethics Division: Proposed Revised and New Interpretations Applicable to Members in Business, the PEEC wants to expand the guidance under the “Integrity and Objectivity Rule” to include other responsibilities of a member in business when disclosing financial information or non-financial information and details not bound by reporting requirements. The PEEC proposes members responsible for financial information to. Read More.
Topics: AICPA Code of Professional Conduct, American Institute of Certified Public Accountants "AICPA", Integrity and Objectivity Rule, Knowing Misrepresentations in the Preparation of Financial Statements or Records, Members in Business, Professional Ethics Executive Committee "PEEC"
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. Read More.
AICPA Committee Approves Exposure Revisions to Definitions
The American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee has approved for exposure revisions to the following definitions under the AICPA Code of Professional Conduct: Client: The proposed revision would clarify that when a company that retains a licensee to perform a professional service is not the same company bound by the professional service, both companies are considered separate clients of the licensee. Attest Client: The proposed revision would state that only the subject entity is an attest client. The exposure draft is expected to be released in mid-December.
AICPA Issues Exposure Draft on Revised Interpretative Guidance
Prepared by its Professional Ethics Executive Committee (“PEEC”), the American Institute of Certified Public Accountants (“AICPA”) has released an exposure draft on potential revisions associated with the organization’s interpretative guidance for professional conduct. Issued on August 29th for public comment, Omnibus Proposal of Revised Interpretations proposes a limited exception to the interpretation of “client affiliate” under the Independence Rule, as well as the definition of “attest client” concerning a firm or individual completing an attest engagement. Per the proposal, the “client affiliate” limited exception would be used when an accountant’s independence is impaired due to an attest client being acquired. Read More.
AICPA Releases Updates to AAG Standards and Audit Risk Alert
Published on June 26th, the American Institute of Certified Public Accountants (“AICPA”) issued updates to five Audit and Accounting Guides (“AAG”). The AAG updates include the following: Compilation and Review Engagements now offers interpretive guidance on recent adjustments to the Statements on Standards for Accounting and Review Services for compilation and review engagements. The Construction Contractors update includes simplified versions of the Auditing Standards Board’s audit standards and Professional Ethics Executive Committee’s Ethics Code of Professional Conduct. Investment Companies reflects modifications to the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (ASU) No. 2013-08, Financial Services-Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, the. Read More.
Topics: AAG Standards, Accounting Standards Update "ASU", American Institute of Certified Public Accountants "AICPA", Audit, Audit and Accoutning Guide "AAG", Audit Risk, Balance Sheet, disclosure, Ethics, Financial Accounting Standards Board "FASB", Investment Companies, Investment Company Act, Professional Ethics Executive Committee "PEEC", Public Company Accounting Oversight Board "PCAOB", U.S. Securities and Exchange Commission "SEC"
Breach of Independence Interpretation Proposal Released
Earlier this week, the American Institute of Certified Public Accountants’ Professional Ethics Executive Committee (“PEEC”) issued an exposure draft for Interpretation No. 101-20, “Breach of an Independence Interpretation” and a revised version of ET Section 91, “Applicability.” Open for public comments, the proposed guidance will assist auditors in reviewing and addressing the effects of breaching an independence interpretation. Per the proposal, the PEEC believes that public interest is not considered when a firm is required to withdraw from an attest engagement caused by an independence interpretation breach if the impact is such that the attest engagement team’s integrity, objectivity, and. Read More.