The AICPA’s Professional Ethics Executive Committee (PEEC) has issued a proposal to revise the rules around unpaid fees. The current rules use a one year period with no considerations of materiality. The proposal would move to a principles based approach with a threats and safeguards application. Comments are due December 20, 2021.
The AICPA has issued a proposed ethics interpretation to help CPAs understand to what extent they can assist clients with implementing new accounting standards. The proposal identifies certain items as being nonattest services for which the normal rules for nonattest services would apply – management having SKE, management accepting responsibility, etc. On the other hand, it also identifies prohibited nonattest services the CPA can not perform without impairing independence. Comments are due December 20, 2021.
The International Ethics Standards Board for Accountants® (IESBA®) has issued two new ethics standards. The first addresses fee-related prohibitions. Firms may not permit the audit fee to be influenced by the provision of services other than the audit to the audit client. In addition, they revised the non-assurance services rules to clarify the circumstances in which firms may provide nonassurance services to an audit or assurance client.
The AICPA’s Professional Ethics Executive Committee (PEEC) has issued an updated proposal around reporting noncompliance with laws and regulations (NOCLAR). Originally issued in 2017, PEEC has been trying to converge with the international standards while addressing unique US issues. The proposal includes separating the requirements for those in public practice between those providing attest services and those providing services that are not attest services. It also provides other clarifications in response to the comment letters received in the first proposal. Comments are due June 30.
The AICPA’s Professional Ethics Executive Committee (PEEC) has issued a Temporary Policy Statement regarding the recent changes by the SEC to their independence rules. Because the rules do not align with the AICPA Code, while PEEC evaluates whether any changes are needed, PEEC has provided a temporary enforcement permitting auditors who follow both to be compliant if they adopt the new SEC rules. The policy is effective until rescinded.
In 2019, the AICPA issued a consultation paper for feedback on the projects PEEC should address. After evaluating feedback, PEEC has issued their Strategy and Work Plan for 2021-2023 which includes standard setting and member enrichment projects. This week’s blog addresses what projects made the cut and when the projects will be kicking off.