Preserving Independence and Otherwise Complying with the New AICPA Code of Professional Conduct

Description

CPAs performing attest services for clients may find that they are not independent even though they thought that they were.  For periods beginning on or after December 15, 2014, a change in the AICPA Code of Professional Conduct classified certain services that are often performed when conducting a compilation, review, or auditing engagement are now considered nonattest services subject to the independence requirements.

In addition, when performing multiple nonattest services for an attest client, the CPA is now required by the Code to apply a conceptual framework approach to determine if independence has been impaired due to the aggregate effect.  As a result, many CPAs may be performing attest services for client’s when their independence was impaired.

These changes were incorporated into the Code when it was rewritten, effective December 15, 2014.  This course will provide an overview of the Code with an emphasis on revisions.  The focus of the course, however, will be on how the CPA can preserve independence when performing nonattest services for an attest client.  It will also provide guidelines for establishing firm policies and procedures to provide assurance of the firm’s independence when required and suggest how proper documentation of compliance can be used to reduce the cost of performing financial statement engagements.

Highlights

• The revised AICPA Code of Professional Conduct
• Requirements for retaining independence when performing nonattest services for an attest client
• The conceptual framework for evaluating independence when multiple nonattest services are performed for the same client
• Understanding and applying the risk based approach and coceptual framework to evluate compliance with the Code of Conduct and, in particular, the independence requirements
• Nonattest services that may or may not be performed for an attest client and how they affect independence
• Documenting complance with the AICPA Code of Professinal Conduct

Objectives

• Understand the recent changes to the AICPA Code of Professional Conduct and how to navigate through the new format
• Recognize the requirements for retaining independence when performing nonattest services for an attest client
• Apply the conceptual framework to determine if independence is impaired when performing more than one nonattest service for a single attest client.
• Develop and document procedures that will provide assurance of compliance with the independence requirements and reduce the cost of certain financial statement engagements

Designed For

CPAs in public practice who perform bookkeeping and other nonattest services for clients who also require reviews or audits or other services requiring the CPA to be independent.  It is also designed for industry accountants with financial reporting responsibility who wish to make certain their CPA is independent when required.