New Code of Professional Conduct Ethics Interpretations Issued

July 7, 2017

The American Institute of Certified Public Accountants’ Professional Ethics Executive Committee has published the following new interpretations of the Code of Professional Conduct:

  • Hosting Services (ET sec. 1.295.143) under the Independence Rule (ET sec. 1.200.001). Effective September 1, 2018, this interpretation offers guidance in circumstances when a member providing non-attest services, and the member is the sole host of a financial or non-financial information system for an attest client, in charge of or protecting the client’s data or records or keeping electronic security or reserve services for an attest client’s data or records.
  • Pressure to Breach the Rules (ET sec. 2.170.010) under the Integrity and Objectivity Rule (ET sec.2.100.001). Effective August 31, 2017, the interpretation focuses on issues that could cause a member to take actions that violate or cause others to break the rules.

Separately, the Revised Interpretation, Knowing Misrepresentations in the Preparation and Presentation of Information (ET sec. 2.130.010) under the Integrity and Objectivity Rule (ET sec. 2.100.001), was issued. Effective August 31, 2017, the interpretation addresses a member’s responsibilities when knowing misrepresentations in the planning and disclosure of information and risks to compliance regarding the “Integrity and Objectivity Rule.”