1) Ethics Committee Raymond N. Johnson, CPA, Ph.D., Chair
2) ETHICS ALERT What’s Coming Over The Horizon
3) 3 Transfer and Return of Client Records â— Confidentiality when reviewing or acquiring a member’s practice â— A member’s responsibility when a practice is sold or transferred â— A member’s responsibility when a practice is discontinued â— The responsibility of a member who acquires a practice
4) 4 Transfer and Return of Client Records â— The Conundrum: What to do when a member (licensee) become incapacitated or dies.
5) 5 Definition of a Client â— Under discussion: The client should be the person or entity that engages the member â— This would not include a target entity that does not engage the member â— Definition of attest client – not necessarily a subset of definition of a client.
6) 6 Definition of a Client â— Will address members in governmental audit organizations â— Will address disclosure of confidential information related to a non-client (e.g. target entity) in definition of attest client.
7) 7 Information Technology and Cloud Services â— Addressing the self-review and management participation threats when a member provides hosting services to an attest client
8) 8 Commissions and Contingent Fees ï‚§ Considering the need to revise the Code to expand the prohibition of acceptance of commission or contingent fees to all attest clients. ï‚§ Addressing whether any additional safeguards are needed (e.g., written disclosure)
9) 9 AICPA Codification / State Board Rule Review â— Recent PEEC Questionnaire to State Boards on Client Records
10) 10 Independence: Entities Included in State and Local Government Financial Statements ï‚§ Determine if a conceptual framework assessment could be utilized to determine when a member needs to be independent of state and local government entities for which he or she is not providing financial statement attest services.
11) 11 Non-Compliance with Laws and Regulations (NOCLAR) â— International Ethics Standards Board for Accountants â— 4 Categories â— â— â— â— Auditors Other Professional Accountants in Public Practice Senior Professional Accountants in Business Other Professional Accountants in Business
12) AICPA Code of Conduct • 19 States have adopted the AICPA Code of Professional Conduct • ENGAGE A DISCUSSION about whether your state board should adopt the AICPA Code of Professional Conduct