AICPA Ethics Board Issues Exposure Draft on Legal Non-Compliance

March 16, 2017

The American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee has proposed new interpretations concerning the AICPA Code of Professional Conduct. The two proposed interpretations are part of the Exposure Draft, Responding to Non-Compliance with Laws and Regulations, and impacts members in both public practice and business.

Entitled “Responding to Non-Compliance with Laws and Regulations” under the “Integrity and Objectivity Rule”, the proposed interpretations offer guidance on a member’s responsibilities when handling non-compliance with regulations at a client or in his or her employing organization. Members that encounter non-compliance must either:

  • Allow the client’s or employing company’s oversight and those with the authority to resolve the non-compliance;
  • Moderate its effects; or
  • Deter the commission of the non-compliance by notifying appropriate parties.

Feedback on the comment is due Friday, May 12.