On May 5th, the AICPA's Professional Ethics Executive Committee (PEEC) held an open meeting (see agenda). Highlights of the actions taken by PEEC were:
NOCLAR (Noncompliance with Laws and Regulations) - PEEC plans to re-expose the NOCLAR interpretations once the Auditing Standards Board has put plans in place to change the auditing standards to require a predecessor auditor to disclose NOCLAR to a successor auditor.
Staff Augmentation Arrangements - The task force will revise the proposal included in Appendix 2B, which PEEC will review again in August for possible release.
Inducements Practice Aid - The task force will continue to work on the document (agenda item 3B) per comments received from PEEC.
Delayed effective dates - PEEC agreed to defer for one (1) year the effective dates for the following three (3) independence interpretations:
- Information system services
- State and local government client affiliates
Statements on Standards for Tax Services (SSTS)- PEEC planned to discuss proposed changes to the SSTSs during the closed meeting on May 6th and will receive an update at the open meeting in August 2020.
The AICPA staff created a 30 minute podcast that addresses each of the above topics and more in greater detail.