An AICPA Professional Ethics Executive Committee (PEEC) task force is seeking public comment through Sunday, June 15, after issuing a discussion memorandum featuring its preliminary conclusions about potential revisions to independence rules related to alternative practice structures.
The Alternative Practice Structures Task Force’s project to revise interpretations in the AICPA Code of Professional Conduct is due to the increasing prevalence of private-equity investment in accounting firms.
"Firms that we have talked to have told us that they want to ensure that they are doing the right thing and complying with the AICPA Code, as well as state laws," Lisa Snyder, task force co-chair and PEEC member, said during a recent webcast before the discussion memorandum release. "So, we believe that by issuing this discussion memorandum with the task force's preliminary conclusions, it will allow firms out there to understand at least where we are heading and also allow the task force to identify any issues or any unintended consequences that maybe we haven't considered."
The task force is seeking comments on its depiction and characterization of an alternative practice structure, its preliminary conclusions and two options for a draft interpretation of independence rules — one that includes a specific private-equity-related example and another that is more general. Read more.