Ethically Speaking

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 [email protected].

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 [email protected].

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 [email protected]

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 [email protected] 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 [email protected].

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 [email protected].

If you'd like to suggest topics for future episodes, please email [email protected].

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 [email protected] 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 [email protected] 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 [email protected].

If you'd like to suggest topics for future episodes, please email [email protected].

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 [email protected].

If you'd like to suggest topics for future episodes, please email [email protected].

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 [email protected].

If you'd like to suggest topics for future episodes, please email [email protected].