Ethics Articles

A concise summary by the AICPA describing the scope and objectives of the codification project:

What is the AICPA Ethics Codification Project?
In December 2008, the AICPA launched the Ethics Codification Project to reformat and enhance its ethics literature. Similar to the FASB Accounting Standards Codification the literature will be put into a logically structured, topical format and re-drafted using consistent wording conventions and styles.

Why is the AICPA Undertaking this Project?
The AICPA’s Code of Professional Conduct (the Code) and related guidance is in need of transformation. Existing in multiple locations, similar subject matters are sometimes disjointed, making it difficult for members to know whether they have considered all the relevant matters.

http://www.aicpa.org/InterestAreas/ProfessionalEthics/NewsAndPublications/DownloadableDocuments/2010NovemberAICPA%20ETHICS%20CODIFICATION%20PROJECT.pdf

Ethically Speaking is a Periodic Publication of the AICPA Professional Ethics Division

Highlights:

- Standard Setting Project (Rule 101 – Independence)
- Confidential Client Information
- Codification Project
- Client Affiliates
- Interpretation 101-3: Establishing or Maintaining Internal Control
- Updates to Ethical Tax Standards

http://www.aicpa.org/Publications/Newsletters/EthicallySpeaking/DownloadableDocuments/2010OctoberEthicallySpeaking.pdf

This document compares the AICPA and IESBA’s independence standards to the independence proposals contained in the GAO August 2010 Exposure Draft. The topics compared include:
-Definition of Independence, Conceptual Framework, Threats to Independence, Safeguards, Engagement Period, Specialists, Non-audit Services.
-Various Services and Documentation, General Activties and Management Responsibilities.

http://www.aicpa.org/InterestAreas/ProfessionalEthics/Resources/Tools/DownloadableDocuments/2010SeptemberComparisonofProposedGAOIndependenceStandardstoAICPAandIFAC.doc

This month’s Journal has articles that address three diverse applications of professional ethics for CPAs.

A comparison of AICPA and IFAC ethics codes
A quiz based on frequently asked questions regarding Ethics Interpretation 101-3, Performance of Nonattest Services

Ethically Speaking is a Periodic Publication of the AICPA Professional Ethics Division

Highlights:

- Confidential Client Information
- Codification Project
- Client affiliates
- Updates to ethical tax standards

http://www.aicpa.org/Publications/Newsletters/EthicallySpeaking/DownloadableDocuments/Ethical_Speaking_June.pdf

The primary objective of the Codification Project is to improve the Code by making it topical and easier to use.   AICPA members and other users of the Code should gain significant benefits as this should minimize the risk of misapplying the rules.   Further, some ethics guidance resides outside the AICPA Code (for example, informal AICPA staff positions and basis for conclusions documents, which carry no authority but provide helpful guidance or background on the rules).  Codification provides an opportunity to re-evaluate that guidance and determine whether to propose that some of it be made authoritative and incorporated into the Codification.

Another important goal of codification will be to retain the substance of the existing AICPA ethics standards.  Similar to the FASB’s Codification effort, the relevant AICPA ethics literature will be put into a logically structured, topical format.  Drafters will reword the literature using consistent wording conventions and styles.  Codification will not involve making substantive changes to the ethics standards; however, the process will likely identify areas that may warrant additional consideration, and possibly, standard-setting. Read more at:

http://www.aicpa.org/InterestAreas/ProfessionalEthics/Community/DownloadableDocuments/2010AprilEthicsCodificationProject.docx

The Professional Ethics Executive Committee has adopted new independence rules for immediate family members.

http://www.aicpa.org/InterestAreas/ProfessionalEthics/Community/ExposureDrafts/DownloadableDocuments/2009September4ExposureDraftFinalAdoptedProposals.doc

The 2010 Plain English Guide to Independence provides examples of the application of the latest Independence rules to everyday practice. Its many uses include as a refresher, a primer or as an application for training.

http://www.aicpa.org/InterestAreas/ProfessionalEthics/Resources/Tools/DownloadableDocuments/plainenglish.doc

Highlights:

- Update to Ethical Tax Standards
- Confidential Client Information
- Codification Project
http://www.aicpa.org/Publications/Newsletters/EthicallySpeaking/DownloadableDocuments/EthicallySpeaking_123009.pdf

Significant changes to the standards for compilation and review engagements will soon take effect. The AICPA’s Accounting and Review Services Committee (ARSC) issued Statement on Standards for Accounting and Review Services no. 19, Compilation and Review Engagements, in December. The standard’s effective date is for compilations and reviews of financial statements for periods ending on or after Dec. 15, 2010, with early implementation permitted for the new reporting option for compilation engagements when the accountant’s independence is impaired. This article discusses the major changes made by the standard.

http://www.journalofaccountancy.com/Issues/2010/May/20102466.htm