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AICPA Committee Updates Independence Rule Interpretations

The American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee (“PEEC”) has updated Interpretations under its Independence Rule. The revised Interpretations include the following: Entities Included in State and Local Government Financial Statements (ET sec. 1.224.020) Simultaneous Employment or Association With an Attest Client (ET sec. 1.275.005) Member of a Credit Union (ET sec. 1.280.040) Actual or Threatened Litigation (ET sec. 1.290.010) General Requirements for Performing Nonattest Services (ET sec. 1.295.040) Bookkeeping, Payroll, and Other Disbursements (ET sec. 1.295.120) Executive or Employee Recruiting (ET sec. 1.295.135) Forensic Accounting (ET sec. 1.295.140) Internal Audit (ET sec. 1.295.150) Application of. Read More.

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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.

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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. Read More.

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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.

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