Ethics Exposure Draft: Accounting Standards Implementation Services

Ethics Exposure Draft: Accounting Standards Implementation Services

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.

Third Party Assessments

Third Party Assessments

The AICPA has issued a Technical Q&A to address common questions regarding what qualifies as a third party assessment and which standards including independence should be applied by the third party. The TQA provides guidance on what qualifies as a TQA, which independence rules apply and which standards can be used by CPAs.

PEEC 2021 Temporary Enforcement Policy

PEEC 2021 Temporary Enforcement Policy

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 The policy is effective until rescinded.

Staff Augmentation ED

Staff Augmentation ED

The AICPA’s Professional Ethics Executive Committee (PEEC) is re-proposing an interpretation for staff augmentation. This proposal would further limit the ability of firms to offer staff augmentation services. The proposal also offers two areas currently not addressed in the proposal as potential changes where PEEC is looking for additional feedback. Comments are due December 8, 2020.

State and Local Government Affiliates

State and Local Government Affiliates

The AICPA is re-proposing changes to the independence standards for governmental entities. As a follow up to their 2017 proposal, PEEC is proposing modifications to their original drafts. Comments are due March 11, 2019.

X