Log Out

AICPA PEEC Issues New, Revised Interpretations on Independence, Confidential Client Information

March 1, 2019

The AICPA Professional Ethics Executive Committee has adopted (PDF) revised interpretations of the “Independence Rule” related to leases and client affiliates and a new interpretation under the “Confidential Client Information Rule” of the AICPA Code of Professional Conduct. The revised “Leases” interpretation (ET §1.260.040) states that self-interest, familiarity, and undue influence threats to a covered member’s compliance with the “Independence Rule” (ET §1.200.001) may exist when a covered member enters into or has a lease with an attest client. The revised “Client Affiliates” interpretation (ET §1.224.010) addresses an exception to the application of the “Independence Rule” to the affiliate of a financial statement attest client when related to the requirements of the leases interpretation under the “Independence Rule.” Read more at the Journal of Accountancy.