Proposed Sustainability Ethics Standard

Proposed Sustainability Ethics Standard

IESBA has issued a Proposed International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and Other Revisions to the Code Relating to Sustainability Assurance and Reporting which was issued in January 2024. It establishes a third pillar of ethics, including independence, standards to complete the infrastructure of international standards being developed by other standard setters and regulators and support public trust in sustainability-related information. Comments are due May 10, 2024.

NOCLAR with ERTC

NOCLAR with ERTC

On July 21, the Office of Chief Counsel at the IRS issued a memorandum to address noncompliance with ERTCs. The memorandum provides responses to various scenarios that employers have been trying to make to qualify as “eligible employers”. Companies have been trying to take advantage of supply chain disruptions during the pandemic to receive tax credits, even though they might not be eligible to receive tax credits. This problem has been placing auditors in uncomfortable situations, as auditors now need to consider NOCLAR with ERTCs as well as revenue recognition issues.

Ethics Proposal: Public Interest Entities

Ethics Proposal: Public Interest Entities

The AICPA’s Professional Ethics Executive Committee (PEEC) has proposed a new definition of publicly traded company and has revised the definition of public interest entity as part of their IESBA convergence. The definition explains when AICPA independence standards would apply and when related ethics standards like PCAOB and NAIC standards would apply. Comments are due September 15.