Resources

Listed below is a compendium of organizations that develop and/or enforce ethics and independence standards for the accounting profession and the relevant rules issued by each:

American Institute of CPA (AICPA) Auditing Standards Board

The Auditing Standards Board (ASB) is the AICPA-designated committee that issues auditing, attestation, and quality control standards and guidance. Rule 202 of the AICPA Code of Professional Conduct requires AICPA members who perform professional services to comply with these standards. Under the standard, A Firm’s System of Quality Control, accounting firms should establish a quality control system that provides reasonable assurance that the firm and its personnel comply with professional standards, regulatory and legal requirements, and that reports issued are appropriate in the circumstances.

AICPA Employee Benefit Plan Audit Quality Center

The Center is a voluntary membership organization for firms that perform or are interested in performing ERISA employee benefit plan audits. The Center was established to promote the quality of employee benefit plan audits. Independence resources (such as a comparison between AICPA and Department of Labor independence rules) are available.

AICPA Governmental Audit Quality Center

Among other things, the mission of the Governmental Audit Quality Center is to raise awareness about the importance of governmental audits, provide comprehensive resources and create a community of firms that demonstrate a commitment to governmental audit quality.

AICPA Professional Ethics Division

Among other things, the Professional Ethics Division promotes understanding of ethical standards contained in the AICPA Code of Professional Conduct by responding to inquiries on the application of the AICPA Code of Professional Conduct to specific areas of practice. The Ethics Division employees also staff the AICPA Professional Ethics Executive Committees and investigate instances of alleged misconduct by AICPA members.

AICPA Tax Center

The AICPA Tax Executive Committee promulgates the Statements on Standards for Tax Services (SSTSs), which set forth ethical standards under the AICPA Code of Professional Conduct for members providing tax services. The Tax Practice Responsibility Committee is the AICPA committee that focuses specifically on ethical issues affecting tax practitioners. These and other AICPA Tax Section committees help the Section achieve its mandates of (1) acting in the public interest and (2) addressing member concerns by helping members hone their professional skills, regulating unacceptable professional conduct, and demonstrating its commitment to promoting and developing an efficient and effective system of taxation.

Department of Labor (DOL)

Auditors of employee benefit plans that file reports with the DOL should be aware of the DOL interpretive bulletin (29 CFR 2509.75-9), Interpretive bulletin relating to guidelines on independence of accountant retained by Employee Benefit Plan. In 2006, the DOL issued a Request for Information (RFI) soliciting comments on whether they should update their independence interpretation. Click here to review the comments the DOL received on the RFI.

Federal Financial Institutions Examination Council (FFIEC)

The following organizations comprise the FFIEC: Office of Thrift Supervision (OTS), Treasury; Board of Governors of the Federal Reserve System (Board); Federal Deposit Insurance Corporation (FDIC); National Credit Union Administration (NCUA); Office of the Comptroller of the Currency (OCC), Treasury. The FFIEC issues Financial Institution Letters (FILs), which are addressed to the Chief Executive Officers of the financial institutions on the FIL's distribution list--generally, FDIC-supervised institutions. FILs may announce new regulations and policies, new FDIC publications, and a variety of other matters of principal interest to those responsible for operating a bank or savings association. FILs have addressed auditor conduct (e.g., internal audit outsourcing and use of indemnification clauses in engagement letters) in recent years and may apply to both public and non-public institutions.

Government Accountability Office (GAO)

Chapters 2 and 3 of the Government Auditing Standards describe ethics and independence standards that apply when an accounting firm is required (by law, regulation, agreement, policy or contract) to perform an audit or other attestation engagement in accordance with generally accepted government auditing standards (GAGAS). The July 2007 revision of the Government Auditing Standards (also referred to as “the Yellow Book”) supersedes the 2003 revision and includes updated quality control and peer review sections in chapter 3. An electronic version of this document can be accessed on GAO’s Yellow Book Web page at www.gao.gov/govaud/ybk01.htm.

Internal Revenue Service (IRS)

Treasury Department Circular No. 230 governs federal tax practice by CPAs, enrolled agents, attorneys, and actuaries before the Internal Revenue Service. The IRS Director of the Office of Professional Responsibility (OPR), operating under the IRS Commissioner’s office and the Treasury Department, may censure, suspend or disbar a practitioner from practicing before the IRS if the practitioner is shown, among other things, to be incompetent or disreputable.

International Federation of Accountants (IFAC)

The International Ethics Standards Board for Accountants, or IESBA, of the IFAC develops ethical standards and guidance for use by professional accountants. It encourages member bodies (such as the AICPA) to adopt high standards of ethics for their members and promotes good ethical practices globally. The IESBA also fosters international debate on ethical issues faced by accountants. The IFAC Code of Ethics for Professional Accountants is available on the IFAC website.

National Association of Insurance Commissioners (NAIC)

The National Association of Insurance Commissioners (NAIC) adopted final revisions to the "Model Audit Rule," which incorporates several aspects of the SEC’s independence requirements, including a prohibition on auditor indemnification. The effective date for the independence provisions in the model is January 1, 2010. Individual state insurance commissions have the option of adopting the Model Audit Rule (or a variation of the rules). A guide for implementing the Model Rule is available. The NAIC maintains a working group with the AICPA on various issues.

Public Company Accounting Oversight Board (PCAOB)

Section 103 of the Sarbanes-Oxley Act of 2002 directs the PCAOB to establish auditing and related attestation, quality control, ethics, and independence standards and rules to be used by registered public accounting firms in the preparation and issuance of audit reports as required by the Act or the rules of the Securities and Exchange Commission.

SEC Office of the Chief Accountant: Professional Practice

The Office of the Chief Accountant is responsible for establishing and enforcing accounting and auditing policy, including auditor independence. Rule 2-01 of Regulation S-X, “Qualifications of Accountants,” is the primary resource. Other sources are: Exchange Act Section 10A(g); Release No. 33-8183, “Strengthening the Commission's Requirements Regarding Auditor Independence”; Release No. 33-7919, “Revision of the Commission's Auditor Independence Requirements”; and FAQ - “Application of the Commission's Rules on Auditor Independence (August 6-2007)”.