Ethically Speaking: Recent Episodes
AICPA Professional Ethics Division
We've resurrected our popular newsletter as a podcast. Tune in for AICPA ethics member enrichment, education, news, and all things ethics and independence. Do you want to share ideas about where our profession is headed? Listen and respond.
Listen as Toni Lee-Andrews and staff of the AICPA Professional Ethics Division fill you in on what happened at this quarter's open meeting.
You can find the full meeting agenda here.
Topics include:
- Section 529 plans
- Private equity investment in firms
- Artificial intelligence
- Simultaneous employment
- Engagements subject to the SSAEs
- IESBA monitoring and international harmonization
If you're interested in IESBA's webinars on their sustainability exposure draft, you can read more about that and register here.
If you were unable to observe PEEC's 4Q meeting, you can listen to an overview from Toni Lee-Andrews and staff of the Professional Ethics Division. The 2-day meeting was packed with project updates and included PEEC's approval of changes to the Code of Professional Conduct related to public interest entities.
IESBA sustainability
If you're a practitioner working in sustainability you'll want to pay close attention to IESBA's work in this area. They are planning to issue 2 exposure drafts in Q1 2024 related to sustainability and the use of experts.
If adopted, these proposals could affect your work. Take time to check out agenda items 7 and 8A in PEEC's meeting materials for November.
You have time to make a difference. Be sure to take advantage of that.
PEEC will be discussing this again at the February 2024 meeting and you can register here to observe that meeting.
Did you miss this week's meeting of the Professional Ethics Executive Committee? Not to worry. You can catch the highlights here with Toni Lee-Andrews, director of the AICPA Professional Ethics Division and other staff.
You'll hear mention of beneficial ownership information reporting and you can check out resources for that here.
In the coming weeks, detailed meeting minutes will be available here.
Don't forget: We offer free CPE when you observe PEEC meetings. Be sure to register for the November meeting.
Listen as Toni Lee-Andrews, director of the AICPA Professional Ethics Division, and staff give you the highlights of this quarter's meeting of the Professional Ethics Executive Committee.
Discussions include international convergence efforts, new proposed guidance on public interest entities, and simultaneous employment.
You'll hear about outreach the division is conducting on simultaneous employment and if you'd like to participate in a survey or upcoming round table, email jennifer.kappler@aicpa-cima.com.
We love it when you're able to join us for meetings... but when you can't, we're happy to give you the highlights.
Listen as AICPA Professional Ethics Division staff fill you in on all the projects the Professional Ethics Executive Committee is currently working on.
Did you know we offer free CPE credits when you observe PEEC meetings? What a great way to get a few credits and stay current with PEEC's activities! Register here for upcoming meetings.
Resources mentioned in this episode
- IESBA Sustainability project page
- IESBA Use of Experts project page
- IESBA Tax Planning and Related Services exposure draft
- IESBA Strategy and Work Plan Draft Consultation Paper
We love it when you're able to join us for meetings... but when you can't, we're happy to give you the highlights.
Listen as AICPA Professional Ethics Division staff fill you in on all the projects the Professional Ethics Executive Committee is working on.
- (00:55) Upcoming meetings
- (01:35) Compliance audits
- (03:10) Convergence on the fees with IESBA (International Ethics Standards Board for Accountants)
- (04:15) Convergence on engagement quality reviewer with IESBA
- (04:50) Simultaneous employment
- (05:35) NOCLAR (noncompliance with laws and regulations)
- (06:25) ISS (information systems services)
- (07:25) Solicitation or exposure of questions and answers in self-exams
- (08:30) DOL independence rules update
- (08:55) Assisting clients with implementing accounting standards
- (09:25) Online Ethics Library update
- (09:55) IESBA update
- (12:10) Update on Statements on Standards for Tax Services
- (13:55) Private equity firms and alternative practice structures
Resources mentioned
- Agenda for the November meeting
- PEEC projects page
- Online Ethics library
- Register to attend upcoming meetings for free CPE
We love it when you're able to join us for meetings... but when you can't, we're happy to give you the highlights.
Listen as AICPA Professional Ethics Division staff fill you in on all the projects the Professional Ethics Executive Committee is working on.
- (00:55) Upcoming meetings
- (01:35) Compliance audits
- (03:10) Convergence on the fees with IESBA (International Ethics Standards Board for Accountants)
- (04:15) Convergence on engagement quality reviewer with IESBA
- (04:50) Simultaneous employment
- (05:35) NOCLAR (noncompliance with laws and regulations)
- (06:25) ISS (information systems services)
- (07:25) Solicitation or exposure of questions and answers in self-exams
- (08:30) DOL independence rules update
- (08:55) Assisting clients with implementing accounting standards
- (09:25) Online Ethics Library update
- (09:55) IESBA update
- (12:10) Update on Statements on Standards for Tax Services
- (13:55) Private equity firms and alternative practice structures
Resources mentioned
- Agenda for the November meeting
- PEEC projects page
- Online Ethics library
- Register to attend upcoming meetings for free CPE
The busier we get, the more we tend to rely on bright lines to help us navigate the world around us. Easy rules to make work simpler. But as trusted advisers in a profession the public relies on, easy rules don’t always cut it for accountants. Sometimes, as Sarah Brack, CPA, says in this episode, you have to use that big brain in extraordinary ways.
As our profession transitions from a rules-based approach to a more principles-based approach, the AICPA is here to help.
Listen as we discuss the zeitgeist, the changing profession, and the help you can find in our ethics library when you need it.
AICPA resources
- Conceptual Framework for Independence
- Conceptual Framework for Members in Public Practice
- Conceptual Framework for Members in Business
- Toolkits – Look on this page for the list of interactive toolkits we discussed in the episode.
- Ethics hotline: 888.777.7077 (option 2 then option 3) or ethics@aicpa.org
International resource
IESBA fact sheet: If you’re interested in diving deeper into how international standards are evolving, you can start with the International Ethics Standards Board for Accountants’ fact sheet on the role and mindset changes.
Winter is coming... Are you overwhelmed with clients asking you to amend their 941s? And are you getting calls from businesses offering to help you out for a fee?
In this episode, Joan Farris and John Wiley, two CPAs on staff in the AICPA Professional Ethics Division, talk through some questions we’re getting on the hotline. What’s legit and what isn’t, what could put you at risk, not just of violating various codes of conduct, but of being the subject of a lawsuit when all is said and done?
You’ll want to listen in and check out the following resources.
AICPA resources
Take a learning dive into the code
- Contingent Fees Rule
- Commission and Referral Fees Rule
- Independence Rule
Call the hotline
You can reach the ethics hotline at
- 888.777.7077, option 2 then option 3
- ethics@aicpa.org
You can reach the tax section at taxsection@aicpa.org
Listen to related episodes from the Tax Odyssey podcast:
- Reconciling ERC claims with reality: The state of ERC now (September 22, 2022)
- Q&A on ERC, tax legislation and IRS woes: Covers several legislative items, including ERC (June 30, 2022)
- Mythbust and maximize the employee retention credit: Take a deep dive into the ERC (June 7, 2022)
- ERC — What we know now: A look at guidance released in Aug. 2021 (August 11, 2021)
- Challenges with contingency fees and the ERC: A look at how contingent fee rules have evolved and how they relate to the ERC (June 9, 2021)
Other resources
- Exposure draft of the revised Statements on Standards for Tax Services
- Download: ERC: Fact or fiction?
You’re busy. Crazy busy — serving your clients, volunteering, taking care of your family and friends, and somewhere in all that, hopefully finding time for yourself. With everything else on your mind daily, you may not know the finer points of your ethical obligations when a client requests records from you.
Jennifer Clayton, CPA, and John Wiley, CPA, come to the rescue in this episode where we cover some dos and don’ts and examples, and give a high-level overview of records requests to point you in the right direction.
Just knowing that the AICPA Code of Professional Conduct (and indeed your state society and state board codes) have rules around this is helpful.
Next time the issue comes up and you have questions, you can always call us on the ethics hotline at 888.777.7077 (option 2 then option 3) or email us at ethics@aicpa.org. John may even be the person you talk to!
If you have time and would like to dig deeper, here are some resources to help:
- Q&As on records requests
- Records Requests interpretation
- Acts Discreditable Rule
- Confidential Client Information Rule
- Interpretations under the Confidential Client Information Rule
You’re busy. Crazy busy — serving your clients, volunteering, taking care of your family and friends, and somewhere in all that, hopefully finding time for yourself. With everything else on your mind daily, you may not know the finer points of your ethical obligations when a client requests records from you.
Jennifer Clayton, CPA, and John Wiley, CPA, come to the rescue in this episode where we cover some dos and don’ts and examples, and give a high-level overview of records requests to point you in the right direction.
Just knowing that the AICPA Code of Professional Conduct (and indeed your state society and state board codes) have rules around this is helpful.
Next time the issue comes up and you have questions, you can always call us on the ethics hotline at 888.777.7077 (option 2 then option 3) or email us at ethics@aicpa.org. John may even be the person you talk to!
If you have time and would like to dig deeper, here are some resources to help:
- Q&As on records requests
- Records Requests interpretation
- Acts Discreditable Rule
- Confidential Client Information Rule
- Interpretations under the Confidential Client Information Rule
Eagerly awaited changes to the DOL independence guidance for employee benefit plans are live in the Federal Register today.
Listen as Summer Young, CPA, currently a senior manager in the AICPA Professional Ethics Division and formerly a practicing EBP auditor, walks us through the history and changes.
You can find the bulletin here.
Keep an eye on the Online Ethics Library for helpful guidance we'll be publishing and also be sure to check out the AICPA Employee Benefit Plan Audit Quality Center.
Eagerly awaited changes to the DOL independence guidance for employee benefit plans are live in the Federal Register today.
Listen as Summer Young, CPA, currently a senior manager in the AICPA Professional Ethics Division and formerly a practicing EBP auditor, walks us through the history and changes.
You can find the bulletin here.
Keep an eye on the Online Ethics Library for helpful guidance we'll be publishing and also be sure to check out the AICPA Employee Benefit Plan Audit Quality Center.
Patches and the "discrete tool" exception... Important concepts when considering whether the help you're giving a client will impair your independence.
In this episode, Liese Faircloth and Iryna Klepcha, two CPAs on staff in the AICPA Professional Ethics Division, continue their discussion with Dan O'Daly, a managing director in Deloitte's independence office, about changes to the Code of Professional Conduct related to technology.
If you missed the first two parts of this discussion, look for episodes 57 and 58.
Related resources
- Information Systems Services interpretation
- ISS practice aid
- Nonauthoritative questions and answers regarding cybersecurity services
- Nonauthoritative questions and answers regarding information systems
- Internal Audit interpretation
Our confidential ethics hotline can be reached at 888.777.7077 then dial option 2, option 3
If you'd like email updates about new Ethically Speaking episodes and other ethics content, subscribe to Digital Dose of Ethics. Just click the link and type "Subscribe" in the subject line. You can unsubscribe at any time.
Patches and the "discrete tool" exception... Important concepts when considering whether the help you're giving a client will impair your independence.
In this episode, Liese Faircloth and Iryna Klepcha, two CPAs on staff in the AICPA Professional Ethics Division, continue their discussion with Dan O'Daly, a managing director in Deloitte's independence office, about changes to the Code of Professional Conduct related to technology.
If you missed the first two parts of this discussion, look for episodes 57 and 58.
Related resources
- Information Systems Services interpretation
- ISS practice aid
- Nonauthoritative questions and answers regarding cybersecurity services
- Nonauthoritative questions and answers regarding information systems
- Internal Audit interpretation
Our confidential ethics hotline can be reached at 888.777.7077 then dial option 2, option 3
If you'd like email updates about new Ethically Speaking episodes and other ethics content, subscribe to Digital Dose of Ethics. Just click the link and type "Subscribe" in the subject line. You can unsubscribe at any time.
In this episode, Liese Faircloth and Iryna Klepcha, two CPAs on staff in the AICPA Professional Ethics Division, continue their discussion with Dan O'Daly, a managing director in Deloitte's independence office, about changes to the Code of Professional Conduct related to technology.
They highlight why PEEC concluded that operating or managing a client’s IT help desk is a management responsibility, and give examples of when providing IT help desk related tasks will and won't impair independence.
If you missed the first part of this discussion, look for episode 57.
Related resources
- Information Systems Services interpretation
- ISS practice aid
- Nonauthoritative questions and answers regarding cybersecurity services
- Nonauthoritative questions and answers regarding information systems
- Internal Audit interpretation
In this episode, Liese Faircloth and Iryna Klepcha, two CPAs on staff in the AICPA Professional Ethics Division, continue their discussion with Dan O'Daly, a managing director in Deloitte's independence office, about changes to the Code of Professional Conduct related to technology.
They highlight why PEEC concluded that operating or managing a client’s IT help desk is a management responsibility, and give examples of when providing IT help desk related tasks will and won't impair independence.
If you missed the first part of this discussion, look for episode 57.
Related resources
- Information Systems Services interpretation
- ISS practice aid
- Nonauthoritative questions and answers regarding cybersecurity services
- Nonauthoritative questions and answers regarding information systems
- Internal Audit interpretation
It's rare to scan through a professional news feed these days without an article or opinion piece on technology in the accounting profession. The changes are exciting and the implications for practice are profound. And there are some things you need to be aware of when it comes to independence.
In this episode, Dan O'Daly, a managing director in Deloitte's independence office, talks with Liese Faircloth and Iryna Klepcha, two CPAs on staff in the AICPA Professional Ethics Division, about changes to the Code of Professional Conduct related to technology.
The revised interpretation "Information Systems Services" becomes effective in the spring of 2023. Be sure to catch each of the three episodes in this "ISS" series to find out what you need to know to be prepared.
Q&As
Staff recently published 3 new Q&As on implementing this interpretation. We hope you'll find them helpful.
If you'd like email updates about new Ethically Speaking episodes and other ethics content, subscribe to Digital Dose of Ethics. Just click the link and type "Subscribe" in the subject line. You can unsubscribe at any time.
Listen as Toni Lee-Andrews and staff of the Professional Ethics Division give an overview of the Professional Ethics Executive Committee's 3rd quarter meeting. Topics include updates on information systems services and noncompliance with laws and regulations.
Check out the Online Ethics Library. If you don't have the link handy, just type aicpa.org/ethicslibrary into the address field of your browser.
For more details about the meeting, see meeting minutes and agendas. Minutes for this meeting should be available soon.
You can also register to attend future PEEC meetings. Get free CPE while staying current with what's happening in ethics both at home and abroad.
If you have comments on this episode or if you'd like to suggest ideas for future episodes, email us at ethicallyspeaking@aicpa.org.
The Great Resignation... the Great Reshuffle... the Big Quit. Different names for the same phenomenon that we see happening all around us. Our profession is no exception, but there may be important ethical considerations if you are moving into a role at an attest client of your firm.
In this episode, we discuss simultaneous and subsequent employment considerations that Melissa Powell, CPA, and Emily Daly, CPA, have been talking with members about on the ethics hotline.
Resources mentioned
- "Considering Employment or Association With an Attest Client" interpretation
- "Subsequent Employment or Association With an Attest Client" interpretation
- "Simultaneous Employment or Association With an Attest Client" interpretation
- Conceptual Framework for Independence
- Chapter 2 of the Plain English guide to independence
Did you know there's a confidential ethics hotline? You can call 888.777.7077 then dial option 2, option 3 when you have questions about ethics and the Code of Professional Conduct.
It's true. In this episode, Emily Daly, CPA talks all about the hotline, explaining what we can and can't answer, how it all works, when you can expect to hear back about an issue, and other topics.
Email us at ethicallyspeaking@aicpa.org if you have comments on this episode or if you'd like to suggest topics for future episodes.
Listen as Mimi-Blanco Best and Ellen Goria, CPAs and associate directors at the AICPA, discuss some potential pitfalls of SOC 2® reporting and offer advice and tools for avoiding issues and ensuring you meet your ethical responsibilites when performing these engagements.
Qs & As
Here are the Qs &As Mimi and Ellen discuss. You'll need to be signed into your account to access these.
If you don't already have an account, you can sign up free of charge.
SOC 2 guide
The AICPA will be publishing a new edition of the SOC 2 guide this year and both of these purchase options give you a full year subscription to updates:
- Online subscription
- Ebook
PEEC is proposing changes to the AICPA Code of Professional Conduct. Listen as Melissa Powell, CPA, and Nancy Miller, CPA discuss why the changes are necessary and what PEEC hopes to learn from members and other interested parties during the comment period for two new exposure drafts.
You can find the exposure drafts and online comment forms at
www.aicpa.org/ethicscomments
You can also read the Journal of Accountancy announcement.
If you have comments on this episode or if you'd like to suggest topics for future episodes, email us at ethicallyspeaking@aicpa.org.
Toni Lee-Andrews and staff of the Professional Ethics Division give an overview of the Professional Ethics Executive Committee's 2nd quarter meeting. Topics include compliance audits, unpaid fees, client confidentiality and data security, information systems services, and more.
For more details about the meeting, see meeting minutes and agendas. Minutes for this meeting should be available in June.
You can also register to attend future PEEC meetings. Get free CPE while staying current with what's happening in ethics both at home and abroad.
If you have comments on this episode or if you'd like to suggest ideas for future episodes, email us at ethicallyspeaking@aicpa.org.
In this episode, John Wiley, CPA, and Jeff Lewis, CPA, continue their discussion of what it means to act with honor, specifically as that relates to fees.
If you missed the previous parts of this discussion, look for episodes 48 and 49, which are parts 11 and 12 of the back to basics series.
Listen as John Wiley, CPA, and Jeff Lewis, CPA, continue their discussion of what it means to act with honor. In this episode, they discuss an important topic: maintaining client confidentiality.
If you missed the first part of this discussion, look for episode 48, or part 11 of the back to basics series.
What does it mean to "act with honor"? That can be subjective, certainly, but the AICPA Code of Professional Conduct has guidance on what it means for our profession. Listen as John Wiley, CPA, and Jeff Lewis, CPA discuss some questions that come into the ethics hotline as well as some general complaints we hear in the ethics division.
Defining a family relationship may seem simple. But is it really? In this week's episode, Sarah Brack, CPA, and April Sherman, CPA, look at family relationships and how they can affect an auditor's independence. You may be surprised at some things they discuss!
Helpful related resources
- AICPA Code of Professional Conduct
- Plain English guide to independence
- Independence rules comparison: AICPA and Government Auditing Standardsf
When do members in business and industry need to be concerned about independence? What are some relationships that can impair independence? In this episode, Sarah Brack, CPA, and April Sherman, CPA, discuss various financial relationships and their possible effects on independence.
Helpful related resources
- AICPA Code of Professional Conduct
- Plain English guide to independence
- Independence rules comparison: AICPA and Government Auditing Standards
What happens when you do everything right but still experience an inadvertent breach of independence? What is a breach? In their continuing discussion of independence, Jennifer Kappler, CPA, and Nancy Miller, CPA, answer these questions as well as discussing related systems of quality control. They also discuss how independence breaches can affect members in business, who are often the clients of auditors.
Helpful related resources
- AICPA Code of Professional Conduct
- Plain English guide to independence
- Independence rules comparison: AICPA and Government Auditing Standards
What do you need to be aware of when you're providing nonattest services to audit and attest clients? What does the code mean by "suitable skills, knowledge, and experience"?
Listen as Jennifer Kappler, CPA, and Nancy Miller, CPA discuss these important questions.
Helpful related resources
- AICPA Code of Professional Conduct
- Plain English guide to independence
- Independence rules comparison: AICPA and Government Auditing Standards
Independence of mind is a vital aspect of ethics. The Independence Rule and the related interpretations help practitioners with solid guidelines when working with audit and attest clients. But what about situations you may find yourself in where the code is silent?
That's where the Conceptual Framework Approach (ET sec. 1.210) comes in.
In this episode, Jennifer Kappler, CPA, talks about the conceptual framework with Nancy Miller, CPA.
Helpful related resources
- AICPA Code of Professional Conduct
- Plain English guide to independence
- Common deficiencies: Government and not-for-profit audits
- Independence rules comparison: AICPA and Government Auditing Standards
Do you know what your responsibilities under the AICPA Code of Professional Conduct are when you encounter a situation that could compromise your integrity or objectivity?
Get a refresher in this episode with Sarah Brack, CPA, CGMA, CGFM, and Lewis Sharpstone, CPA.
You can find the code at www.aicpa.org/codeofconduct.
Listen as Sarah Brack, CPA, CGMA, CGFM, and Lewis Sharpstone, CPA, discuss the foundations of integrity and objectivity in the AICPA Code of Professional Conduct.
You can find the code at www.aicpa.org/codeofconduct.
Jennifer Kappler, a manager in the ethics division, and Ian Benjamin, CPA discuss the ins and outs of auditing government entities.
Helpful related resources
- AICPA Code of Professional Conduct
- Common deficiencies: Government and not-for-profit audits
- Independence rules comparison: AICPA and Government Auditing Standards
Look for other episodes in this series with the search bar at the top of the show notes. Search for "B2B" or "back to basics."
If you have feedback on this episode or if you’d like to suggest topics for future episodes, shoot us an email at ethicallyspeaking@aicpa.org.
Be sure to subscribe so you’ll catch every episode of Ethically Speaking. Just search for the podcast at your favorite streaming platform and look for our jolly citrus logo.
Jennifer Kappler, a manager in the ethics division, and Ian Benjamin, CPA discuss why compliance with auditing and accounting standards is so important for a self-regulating profession.
Helpful related resources
- AICPA Code of Professional Conduct
- Common deficiencies: Employee benefit plan audits
- Common deficiencies: Government and not-for-profit audits
Look for other episodes in this series with the search bar at the top of the show notes. Search for "B2B" or "back to basics."
If you have feedback on this episode or if you’d like to suggest topics for future episodes, shoot us an email at ethicallyspeaking@aicpa.org.
Be sure to subscribe so you’ll catch every episode of Ethically Speaking. Just search for the podcast at your favorite streaming platform and look for our jolly citrus logo.
In this first episode of our “Back to basics” series, John Wiley, CPA, ABV, CGMA and Jerry Love, CPA, CVA, ABV, PFS, CFP, MAFF bring their considerable expertise to this opening overview of the Code of Professional Conduct and its vital role in our self-regulating profession. Whether you’re a member in business or a member in public practice, there’s something here for you.
You can find the AICPA Code of Professional Conduct at aicpa.org/codeofconduct.
Look for other episodes in this series with the search bar at the top of the show notes. Search for "B2B" or "back to basics."
If you have feedback on this episode or if you’d like to suggest topics for future episodes, shoot us an email at ethicallyspeaking@aicpa.org.
Be sure to subscribe so you’ll catch every episode of Ethically Speaking. Just search for the podcast at your favorite streaming platform and look for our jolly citrus logo.
Listen as ethics division staff give an update on PEEC’s meeting. The committee approved several changes to the Code of Professional conduct in the following areas:
- Noncompliance with laws and regulations
- Unpaid fees
- Assisting clients with implementing accounting standards
- Loans, acquisitions, and other transactions
Visit PEEC’s project page for documents related to all of these and expect to see the final pronouncements on that page soon.
Other projects
There are lot of other updates as well, and here’s a list of projects mentioned in the episode:
- Practice aid: Independence considerations for information system services
- Quiz: Ethical standards to consider when accepting or continuing an attest engagementin the Journal of Accountancy
- 2021 Plain English Guide to Independence
- Q&A related to applying the affiliate definition and client affiliates interpretation to individuals (FAQs: General ethics)
Acronyms mentioned in this episode
We slipped some acros in without explanation, so in case you're wondering, here's a list of those:
- USERRA – Uniformed Services Employment and Reemployment Rights Act
- SSAE – Statements on Standards for Attestation Engagements
- IESBA – International Ethics Standards Board for Accountants
- ISQM – International Standards for Quality Management
- PIOB – Public Interest Oversight Board
- IFAC – International Federation of Accountants
If you have comments or ideas for future episodes, email us at ethicallyspeaking@aicpa.org
The Professional Ethics Executive Committee’s 4th quarter meeting covered several ongoing projects and some new ones as well. Listen as division staff provide updates on discussions of the following projects:
- Noncompliance with laws and regulations (NOCLAR)
- Information systems services (ISS)
- Current standards-setting and member enrichment project updates
- Compliance audits
- Objectivity of engagement quality reviewers
- Temporary enforcement policy addressing conflicts between the AICPA Code of Professional Conduct and the Uniform Service Employment and Reemployment Rights Act
- IESBA update
- Client affiliates
- Statements on Standards for Tax Services
Resources mentioned in the episode
For additional details of discussions at this quarter’s meeting, check the meeting agenda; minutes will be available at that link soon.
We offer CPE credit for meeting attendance; register here to attend the February meeting.
Email us at PEECCoordinator@aicpa.org to sign up for educational round tables covering new guidance on information systems services.
PEEC and ethics division projects update
International Ethics Standards Board of Accountancy update
New independence guidance on loaning staff to clients becomes effective November 30, 2021. In this episode, you’ll hear the 5 things you need to be aware of when you enter staff augmentation arrangements with your clients.
Resources
- Staff Augmentation Arrangements interpretation
- Staff augmentation Qs & As
- Journal of Accountancy articles
- March 2021
- September 2020
How do loans to and from attest clients affect your independence? The Professional Ethics Executive Committee (PEEC) is proposing changes to the Code of Professional Conduct related to loans and acquisitions.
Take this opportunity to hear about the proposed changes and send your comments for consideration.
The exposure period for this guidance runs through January 5, 2022 and in this episode you'll hear:
- Which practitioners will be affected
- How practice will be affected
- What PEEC is hoping to learn during the exposure period
- Why PEEC believes the new guidance is necessary
Resources
You can find the text of the exposure draft here.
If you'd like to send comments, but not a formal comment letter, use our online comment submission form. You can also send an email to ethics-exposuredraft@aicpa.org.
If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org.
If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org.
PEEC wants to hear from you about proposed changes to the AICPA Code of Professional Conduct. In this episode, we discuss a new independence interpretation on assisting clients with accounting standards implementation. You’ll hear:
- Which practitioners will be affected
- How practice will be affected
- What PEEC is hoping to learn from commenters during the exposure period
- Why PEEC believes the new guidance is necessary
Resources
You can find the text of the practice aid here.
You can email comments to ethics-exposuredraft@aicpa.org or you can use this online form to submit your thoughts.
When considering changes to the AICPA Code of Professional Conduct, the Professional Ethics Executive Committee (PEEC) wants to hear what our members and other interested parties have to say.
This new series is a helpful addition to the text of exposure drafts: You can have a quick listen while going about your business to get those feedback synapses firing and take time later to dive into the text.
In this inaugural episode, we discuss changes to the “Unpaid Fees” interpretation under the independence rule. You’ll hear:
- Which practitioners will be affected
- How practice will be affected
- What PEEC is hoping to learn from commenters during the exposure period
- Why PEEC believes the new guidance is necessary
Resources
You can find the text of the practice aid here.
You can email comments to ethics-exposuredraft@aicpa.org or you can use this online form to submit your thoughts.
If your streaming platform doesn't support links, see this episode's show notes at ethicallyspeaking.libsyn.com to access resources.
If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org.
If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org.
| Have you ever wondered how you can become a member the Professional Ethics Executive Committee, other executive committee, or any volunteer body at the AICPA? Attendees at the AICPA’s 2021 ENGAGE conference had some great questions for presenters Jim Brackens, Vice President of Ethics and Practice Quality at the AICPA, and Lewis Sharpstone, CEO of Sharpstone and Co. in California and current member of PEEC. Listen to this episode for questions on upcoming practice aids, Qs & As, and opportunities for cost-free CPE credits. If you missed part 1 of this episode, be sure to go back and listen. You’ll hear how the process for changing the AICPA Code of Professional Conduct works, including the exposure draft process. You’ll also hear about the ethics division’s enforcement process. Resources If you’re interested in volunteering, go to aicpa.org/volunteer. Applications are being accepted through October 1, 2021 for the 2022-23 committee year. You can find member enrichment materials mentioned in this episode at aicpa.org/PEECprojects as soon as they are published. We offer CPE credit for attendance at PEEC meetings. You can find out upcoming dates and register at aicpa.org/PEECmeeting. If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org. If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org. |
Ever wonder what, exactly the Professional Ethics Executive Committee (PEEC) does or what the process is for changing the AICPA Code of Professional Conduct?
Attendees at the AICPA’s 2021 ENGAGE conference had some great questions for presenters Jim Brackens, Vice President of Ethics and Practice Quality at the AICPA, and Lewis Sharpstone, CEO of Sharpstone and Co. in California and current member of PEEC.
Listen to this episode for answers to questions that range from how the process for changing the Code of Professional Conduct works to whether the enforcement activities of the ethics division are punitive.
Also look for part 2 of this episode, which covers recent and upcoming member enrichment, comprising publications and events from the division to enhance your practice and make compliance with the code simpler.
Resources
After September 20, 2021, you’ll find files for the exposure drafts and member enrichment materials mentioned in this episode at aicpa.org/PEECprojects.
If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org.
If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org.
At this quarter’s meeting, the Professional Ethics Executive Committee agreed to issue five new Qs & As and three new ethics exposure drafts. The Auditing Standards Board has also issued exposure drafts on quality management and Ahava Goldman of the AICPA Audit and Attest team spoke about those at the meeting.
PEEC discussed several other standards-setting and member enrichment projects as well. Listen as Toni Lee-Andrews, AICPA Professional Ethics Division Director, and staff discuss these projects:
- SEC convergence (exposure draft)
- IESBA and IFAC convergence
- Unpaid fees (exposure draft)
- Assisting attest clients with implementing accounting standards (exposure draft)
- Information systems services practice aid
- Compliance audits
- Staff augmentation Qs & As
- NOCLAR interpretation
- Statements on Standards for Tax Services
- Quality management
- Member enrichment
To see the quality management exposure drafts, visit the AICPA Accounting and Auditing website.
You’ll also find links there to several supporting documents, including this video explaining the project.
PEEC’s next meeting is November 16, 2021 and we’d love you to register and join us.
Keep an eye on this page for links to the three ethics exposure drafts and the Qs & As as we publish them.
If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org.
If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org.
A high priority of the Professional Ethics, Peer Review, and CPA Evolution teams at the AICPA is to help you, the practitioner, navigate the tricky waters of challenging times. In this episode, you’ll hear from the teams’ directors about this work and upcoming resources soon to be available.
Did you know when you joined the AICPA as a member that we have an ethics investigation and enforcement team? Do you know what we do as opposed to state boards of accountancy and federal agencies like the US Department of Labor?
In this episode, Jennifer Clayton, Associate Director of Ethics Enforcement at the AICPA, talks with Ian Benjamin, Enforcement Subcommittee Chair, and Melissa Critcher, Subgroup Chair, to clear up some common misperceptions about the AICPA’s enforcement activities. You’ll hear how the works with state boards of accountancy and federal agencies and how our focus on remediation helps our members and makes our process different.
If you’re interested in more specifics about our investigation and enforcement process, you can listen to episode 5 of Ethically Speaking: Yikes! I’m being investigated. What now?
With remote work becoming more common, questions arise about what “office” means in terms of independence. Listen as Michael Schertingzer, CPA, and Kelly Hunter, CPA, discuss the history of the Professional Ethics Executive Committee’s project on the definition of “office” as well as some particulars practitioners and firms should be aware of.
Tune into this first episode of our new ongoing series “What’s hot on the hotline.” In this episode Professional Ethics Division staffers Shannon Ziemba, CPA, CGMA and Liese Faircloth, CPA discuss records requests and nonattest services.
The Professional Ethics Executive Committee held its second quarter meeting this week. Listen as Toni Lee-Andrews, director of the AICPA Professional Ethics Division, and staff fill you in on the highlights, including SEC and IESBA convergence, staff augmentation, upcoming member enrichment projects and more.
The Professional Ethics Executive Committee had its 1Q meeting this week. Listen as Toni Lee-Andrews, director of the AICPA Professional Ethics Division, and staff fill you in on the highlights, including key votes on NOCLAR, records requests, and staff augmentation.
If you’d like more detail than we cover in this episode, you can review the meeting agenda. Full meeting minutes will be on PEEC’s meeting information page after PEEC's next meeting in May.
What you’ll hear:
- (00:36) Welcome
- (01:08) NOCLAR
- (02:05) Staff augmentation
- (09:48) Records requests
- (12:50) SEC convergence
- (16:00) Compliance audits
- (18:27) Convergence with IFAC’s role and mindset standard
- (20:05) IESBA activity
- (22:45) Statements on Standards for Tax Services
If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org.
If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org
The Professional Ethics Executive Committee had its 4Q meeting this week. Listen as Toni Lee-Andrews, Director of the AICPA Professional Ethics Division, and staff fill you in on the highlights, including what you can expect to see in 2021 as a result of PEEC’s strategy and work plan.
What you’ll hear about:
- Introduction
- (00:33) NOCLAR
- (01:55) Records requests
- (02:33) PEEC’s three-year trategy and work plan
- (03:40) New Qs&As on pooled employer plans
- (06:06) The SEC’s recent independence revision
- (07:00) Non-enforcement policy
- (07:40) Projects the International Ethics Standards Board for Accountants (IESBA) is working on
- (10:35) Closing, including information on upcoming December interim meeting
Listen as staff of the AICPA Professional Ethics Division discuss updates to the Plain English guide to independence since 2017. You'll hear about hosting services, information system services, and new SEC guidance, among other topics.
Go to aicpa.org/plainenglishguide to access the guide.
This second of two Ethically Speaking episodes on PPP forgiveness engagements covers some questions we've had on the ethics hotline. Toni Lee-Andrews, Director of the AICPA Professional Ethics Division, takes a dive into specifics with Jim Brackens, AICPA Vice President of Ethics and Practice Quality, and Bob Dohrer, Chief Auditor of the AICPA Audit and Attest Standards team. Resources mentioned in this episode will be available soon on the show notes page at aicpa.org/ethicallyspeaking.
In this first of two episodes on forgiveness engagements, you'll hear about areas of the AICPA professional standards you need to be aware of when helping your clients with loan forgiveness, including the code of conduct. Listen, as Toni Lee-Andrews, Director of the AICPA Professional Ethics Division hosts a discussion with Jim Brackens AICPA, Vice President of Ethics and Practice Quality and Bob Dohrer, Chief Auditor of the AICPA Audit and Attest Standards team. Resources mentioned in this episode will be available soon on the show notes page at aicpa.org/ethicallyspeaking.
In this episode, you’ll hear our update on NOCLAR (noncompliance with laws and regulations), the inducements practice aid, IESBA (the International Ethics Standards Board for Accountants), the monitoring group recommendations, and a status report on the Statements on Standards for Tax Services. You'll hear about an Association update from Sue Coffey, executive vice president for public practice and also the PEEC strategy and work plan. In this meeting, PEEC voted to re-expose the staff augmentation proposal for comment. Our next PEEC meeting is November 17. We'd love you to join us. Go to www.aicpa.org/PEECmeeting and register to attend.
In this episode Diane Jules, deputy director of the International Ethics Standards Board for Accountants and Ellen Goria, associate director of the AICPA Professional Ethics Division, discuss IESBA’s recently released staff Q & A document. If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org. If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org.
Listen as Diane Jules, deputy director of the International Ethics Standards Board for Accountants and Ellen Goria, associate director of the AICPA Professional Ethics Division, discuss the board’s goals and the relevance of the board’s work to U.S. accountants. If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org. If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org.
In this episode, Carl Mayes, CPA, and Michele Craig, CPA, discuss the AICPA’s Enhancing Audit Quality Initiative: its purpose, history, current areas of focus and some of the ongoing quality challenges firms face. What you’ll hear in this episode: • When, why, and how EAQ began. • Mechanics and logistics. Where do the numbers come from that drive relevance? • Some of the successes of the initiative. • 2020 goals for EAQ. • Long term goals
Staff augmentation arrangements and non-compliance with laws and regulations (NOCLAR) were two of the liveliest discussions this quarter. The Professional Ethics Executive Committee also approved a one-year deferral of the effective date of three interpretations: Information System Services, State and Local Government Client affiliates, and Leases. PEEC meetings are open to the public and we always welcome feedback and input about projects and plans. Updates in this episode: • Non-compliance with laws and regulations • Staff augmentation arrangements • The ethics division’s three-year strategy and work plan • Convergence with IESBA’s inducements standard • One-year effective date deferral of three ethics interpretations • Revision project for the AICPA Statements on Standards for Tax Services Curious about meetings? Join us for one! Here’s our remaining 2020 meeting schedule: • August 11 • November 17 We welcome observers and we’d love you to join us. Please go to aicpa.org/PEECmeeting to register for an upcoming meeting. If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org. If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org
Listen as Aradhana Aggrawal and April Sherman, two of our independence and behavioral managers, talk about ethics hotline activity and about the new Qs&As we’ve released on hosting. Just in time for tax season, we’ve answered questions on general ledger software, tax returns, and independence. What you’ll hear in this episode • (00:40) Background, definition, and what the hosting interpretation says. • (02:00) What questions were coming in when the interpretation became effective? • (04:13) What about nonattest services for affiliates? How does the interpretation apply? • (05:30) Newly released questions and answers on general ledger software, tax returns, repeat requests for documents, and the by-product of engagements. • (11:41) Center for Plain English Accounting upcoming report on the hosting services interpretation. Resources mentioned in this episode • The new Qs&As are in Frequently Asked Questions: Nonattest services. Go to page 22 and look for question 5 and 8‒10. • You can find the Hosting Services interpretation in the AICPA Code of Professional Conduct at section 1.295.143. • Keep an eye out for the soon-to-be-published CPEA report on hosting. Members of this section have access to a wide variety of helpful reports and tools, written in straight-forward and clear style. Consider joining today! If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org. If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org
Tune in to this episode of Ethically Speaking to hear the latest about projects the AICPA Professional Ethics Executive Committee is working on. PEEC meetings are open to the public and we always welcome feedback and input about projects and plans.
CPAs are a helpful bunch! How can we avoid letting that delightful characteristic put us in the position of auditing our own work when we help our clients in their implementation of the new rev rec standard? In this episode of Ethically Speaking, Toni Lee-Andrews, director of the AICPA Professional Ethics Division, and Bob Dohrer, chief auditor of the AICPA Audit and Attest team, sit down to explore some of the unique challenges auditors may face this year as a result of FASB ASC 606. What you’ll hear in this episode: • (2:42) Avoiding management responsibilities with the client's FASB ASC 606 implementation team. What are some things the auditor can and can't do? • (5:20) Clients' looking to the auditor for implementation help. What are the challenges with that? • (6:30) What if an audit team finds out the client has done nothing to implement the standard? • (11:20) What are some challenges related to the pervasiveness of rev rec to the financial statements? • (12:25) How do internal controls factor into the client's implementation of the standard? Can the attest CPA play a role? • (16:40) What if the client doesn't have good internal controls, puts a number down for revenue, and asks the auditor to audit against that number? • (20:20) What are some things CPAs can do? • (21:30) What resources does the AICPA have to help auditors? This episode's web page with resource list will be available at www.aicpa.org/ethicallyspeaking soon. If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org. If you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org
What (and who) you’ll hear in this episode: • Toni Lee-Andrews: Introduction and welcome (00:36) • Brian Lynch: PEEC three-year strategy and work plan consultation paper (00:52) • Lisa Snyder: Staff augmentation (01:54) • Anna Doudourekas: Inducements (04:12) • Ellen Goria: IESBA update (06:04) • Nancy Miller: State and local government; IT and cloud services - (9:40) • Stephanie Saunders: AICPA tax standards revision project (10:25) • Robert Denham: NoCLAR (non-compliance with laws and regulations) (11:30) • April Sherman: Records request interpretation (15:10) • Sarah Chun: What it means to have a brand voice and how this may affect PEEC content (16:55) • Toni Lee-Andrews: Upcoming episodes, including a special video edition covering independence considerations when helping clients implement the new revenue recognition standard (20:27) PEEC discussed the SLG practice aid. At the February 2020 meeting, the task force will present revisions based on the discussion.
Why this is an important topic for members (00:34) Explanation of AICPA's tax standards (00:58) History of the tax standards (02:10) Past AICPA ethics investigations into tax standards violations (03:45) Tax questions to the AICPA ethics hotline (04:40) About the current revisions of the tax standards (06:40)
Want to stay up to date with ethics guidance? Tune in to this episode of Ethically Speaking to hear the latest on projects the AICPA Professional Ethics Executive Committee is working on. In its open meeting this quarter, the committee discussed several topics including NOCLAR, IESBA developments, inducements, staff augmentation, and the three-year strategy and work plan. Staff presented updates on helpful implementation guidance for hosting services and auditors of state and local government entities. PEEC meetings are open to the public and we always welcome feedback and input about projects and plans. What (and who) you’ll hear in this episode: • Toni Lee-Andrews: Introduction of Brian Lynch, new committee chair (00:48) • Brian Lynch: PEEC three-year strategy and work plan (01:30) • Andy Mintzer: IESBA update (03:58) • Robert Denham: NOCLAR (06:51) • Stephanie Saunders: Statements on Standards for Tax Services, revision project (10:30) • Ellen Goria: Hosting services, new FAQs (13:45) • Ellen Goria: Staff augmentation (18:05) • Anna Doudourekas: Inducements (23:10) • Melissa Powell: Implementation guidance for auditors of state and local governments (24:50) • Jennifer Kappler: Updates on tools to apply the guidance for client affiliates. (26:41) If you have questions about the substantive content of this episode, please call the ethics hotline at 888.777.7077 (option 2, then option 3) or email ethics@aicpa.org. If you have other comments on this episode or if you’d like to suggest topics for future episodes, please email ethicallyspeaking@aicpa.org.
Listen in on this second hosting services episode to hear answers to questions coming into our hotline and received at the recent Engage conference. What you’ll learn in this episode: • Hosting services explained (1:03) • Why hosting services impair independence (2:05) • What tax practitioners need to provide to their clients to meet the requirements of this interpretation (4:40) • About UNICAP calculations (6:25) • What qualifies as hosting when a third-party cloud service is used (7:20) • How the interpretation affects members’ portals (9:47) • About services that are not considered hosting (11:13) • Members’ responsibility to safeguard client information (13:50) • Final thoughts on professional judgment, retroactive responsibility, safeguarding client information, and work papers (15:25)
Do you know whether you're providing hosting services to your clients? Will your independence be impaired when the ethics guidance takes effect on July 1? Get answers to these questions and more in this informative episode. Hosting services explained (0:53) Why the new guidance is necessary and what issues it's addressing (2:08) Benefits to members and the public of the new guidance (3:50) Examples of services that are and aren't hosting and will or won't impair independence (6:15) Crossover between records requests and hosting services (11:29) Implementation guidance offered by the ethics division (13:00) About portals and hosting (15:05) Reasonable period of time defined (17:50) Recurring bookkeeping services and hosting (21:06)
Outgoing PEEC chair Sam Burke, division director Toni Lee-Andrews, and various task force leaders discuss the "State and Local Government Client Affiliates" and "Information System Services" interpretations as well as other key happenings at PEEC’s open meeting on May 15.
The AICPA Professional Ethics Division has resurrected our perennially popular newsletter as a podcast. In this inaugural episode, Toni Lee-Andrews, the director of the division, speaks on our vision and the value we hope to bring members and other interested parties. You’ll hear plans for education, member enrichment, and how we’ll use the podcast to support standard setting and engagement with our members and the profession.