FTC okays accountants’ code change
WASHINGTON — The staff of the Federal Trade Commission (FTC) will not object to a change in the professional code of conduct being proposed by a trade group representing accountants nationwide, which is designed to assure the public that audits by associated firms are conducted objectively.
In a letter sent to the American Institute of Certified Public Accountants (AICPA), the staff said it will not recommend taking action to block a proposed expansion of the group’s “independence rule.” The staff letter stated that the expanded independence rule appears likely to enable small and medium-sized accounting firms to increase their effective size and scope to compete for additional accounting work, while ensuring the public that their audit work is untainted by auditor self-interest.
The independence rule, which is in place to ensure that CPAs act “with objectivity and professional skepticism,” is part of the AICPA’s Code of Professional Conduct. The Institute proposes to amend the rule to apply not only to individual firms, but to networks of firms, as defined by the institute. Under the amended rule, a firm in a network would be precluded from providing audit services to a prospective client if other firms in that network were providing, or had provided, during the period covered by the audit, specified non-audit services to the prospective client that might be seen as potentially compromising the independence of the audit.
To sign up for Mississippi Business Daily Updates, click here.
One Response to “FTC okays accountants’ code change”
Top Posts & Pages
- (UPDATE) Prison won’t interrupt ex-prison chief’s retirement cash flow
- JOSH MABUS — Inbound marketing is fueled by wishful thinking
- 2014 a good year for filmmaking in Mississippi
- Kemper plant employee gag order continued
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- WRESTLING SUCCESS — Ted DiBiase Jr. leaves ring to become entrepreneur
- MARTIN WILLOUGHBY — Doug Dale’s self-awareness helps lift him to top of his game
- Ex-prison boss and businessman admit to bribery scheme
- (UPDATED — BREAKING NEWS) American Specialty Alloys won’t locate $1.2B mill in Mississippi