Article

AICPA Committee Updates Independence Rule Interpretations

January 5, 2018

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 the Independence Rule to Engagements Performed in Accordance with Statements on Standards for Attestation Engagements (ET sec. 1.297.010)

The PEEC also updated the following definitions:

  • Attest client
  • Client
  • Closely held investment
  • Key position
  • Period of the professional engagement
  • Public interest entities