AICPA Committee Issues Revised Exposure Draft on Independence Requirements for Governments
The Professional Ethics Executive Committee of the American Institute of Certified Public Accountants (“AICPA”) has issued a revised exposure draft on the independence requirements for state and local governments. Published as Proposed Interpretation: State and Local Government Client Affiliations (formerly Entities Included in State and Local Government Financial Statements) , the exposure draft features significant changes to the original July 2017 proposal, which aims to replace current interpretive guidance in “Entities Included in State and Local Government Financial Statements.” The AICPA is proposing the amendments to address concerns regarding an accountant’s independence on a financial statement attest client that is a state or local government entity. Since existing interpretation does not specify when accountants should review the “Conceptual. Read More.
New AICPA Interpretation Proposed on Disclosing Client Information
The American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee has issued an exposure draft that proposes a new interpretation of a confidentiality rule concerning the disclosure of confidential client information. Per the rule, an AICPA member is not allowed to share a client’s confidential information without the client’s specified consent. There are exceptions to gaining specific client consent, such as for members who obtain a practice review authorized under the AICPA, a state CPA society, or Board of Accountancy. As currently written, the standard does not clarify whether the exceptions to the rule extends to quality reviews.. Read More.
AICPA Committee Proposes Updated Information System Services Interpretation
The American Institute of Certified Public Accountants’ Professional Ethics Executive Committee (“PEEC”) has proposed amendments to its interpretation of an independence rule concerning nonattest services associated with an attest client’s information systems. Outlined in the exposure draft Proposed Revised Interpretation – Information System Services (formerly Information, Systems Design, Implementation, or Integration) , the proposed changes relate to the PEEC’s review of the “Nonattest Services” subtopic under the “Independence Rule” as well as its application to existing information technology services provided to clients. During the project, the PEEC has examined its “Information Systems Design, Implementation, or Integration” interpretation to assess major threats to independence that could occur when such services are offered. The PEEC’s proposed. Read More.
AICPA Board Releases Exposure Draft for Leases Interpretation
The American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee (“PEEC”) has issued an exposure draft, Proposed Revisions to the AICPA Code of Professional Conduct: Leases Interpretation, which proposes updates to the independence guidance for leases under the Code of Professional Conduct. The proposed amendments relate to Accounting Standards Update No. 2016-02, Leases, which was released last year by the Financial Accounting Standards Board. Upon the standard’s release, the PEEC assumed a project to review its leases interpretation. After its review, the PEEC agreed to update the interpretation for consistency and to address situations that could threaten independence. The exposure draft offers guidance for situations wherein a covered member. Read More.
Topics: Accounting Standards Update "ASU", AICPA Code of Professional Conduct, AICPA Exposure Draft, AICPA Professional Ethics Executive Committee, FASB, Financial Accounting Standards Board "FASB", lease accounting
Comment Period for AICPA Ethics Board Proposal Ends Friday
Tomorrow is the last day to comment on an Exposure Draft by the American Institute of Certified Public Accountants’ (“AICPA”) Professional Ethics Executive Committee. The Exposure Draft, Proposed Interpretations — Responding to Non-Compliance with Laws and Regulations, introduces new interpretations of the AICPA Code of Processional Conduct. The proposed new interpretations are entitled “Responding to Non-Compliance with Laws and Regulations” (ET sec. 1.170.010 and 2.170.010) under the “Integrity and Objectivity Rule” (ET sec. 1.100.001 and 2.100.001), and will impact members in public practice and business. The new interpretations offer guidance on a member’s responsibilities when handling non-compliance with regulations at. Read More.
AICPA Ethics Board Issues Exposure Draft on Legal Non-Compliance
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. Read More.
Topics: AICPA, AICPA Code of Professional Conduct, AICPA Exposure Draft, AICPA Professional Ethics Executive Committee, American Institute of Certified Public Accountants "AICPA", Legal Non-Compliance