Audit Conduct

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AICPA podcast - Feb 11 open meeting highlights

The Professional Ethics Executive Committee (PEEC) released a podcast that summarizes the discussions that took place during its February 11, 2020 open meeting. The 30 minute podcast includes the following topics: 

Noncompliance with laws and regulations (NOCLAR) - developments regarding the ASB's consideration of possible audit standard-setting and the status of the NOCLAR task force's deliberations and next steps.

SEC’s proposed independence amendments to SEC Rule 2-01, Qualifications of Accountants - plans for task force (PEEC members working with the Center for Audit Quality to develop comments to proposal) to formulate a response to the SEC's questions, or certain questions, in its proposal.

Staff augmentation - National Association of State Boards of Accountancy (NASBA) resolution stating opposition to the proposed independence standard and that licensees violating the independence rules should cease such violations and state accountancy boards should enforce the rule.

Statements on Standards for Tax Services - update on the status of amendments to the statements that will be proposed later this year.

Records request - PEEC voted to propose changes to the records request interpretation that would preclude members from withholding client-provided records when the client refuses to pay the member fees related to copying and/or shipping the records to the client.

Aligning AICPA guidance with IESBA’s inducement standard - status on development of a practice aid that would bridge the gap between the AICPA Code and the revised inducements provisions in the International Ethics Standards Board for Accountants (IESBA) Code.

State and local government (SLG) client affiliates and single audits - a task force will consider the affiliate definitions as they relate to the single audit environment. The SLG implementation guide is nearing completion and will be sent to PEEC for review soon.

PEEC’s three-year strategy and work plan - status of the proposed strategy and work plan; awaiting feedback but have received multiple questions related to hosting and artificial intelligence (AI), and volunteers to serve as SMEs in AI if such task force is formed.

PEEC's next meeting is May 5, 2020.