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”
Mississippi Economic Council
Mississippi Chambers of Commerce
Mississippi State Legislature
Mississippi Development Authority
Mississippi Economic Development Council
North Mississippi News
Social Security Disability Lawyer
Auto Accidents Lawyer
Top Posts & Pages
- Ingalls to lease former SRHS clinic in Gautier for employee medical center
- Aluminum company rumored for Columbus: 'clock' is for website, not plant site
- Shale oil: market correction or longterm direction?
- Miss. surgeon sentenced in tax evasion case
- WILLOUGHBY: Mayo Flynt leads AT&T Mississippi by enjoying both work and workers
- MARTIN WILLOUGHBY: Gary Herring building tomorrow by educating today
- MBJ exclusive: Jackson’s new airport CEO fulfills desire to taking on the top job
- Hyatt-Place is Columbus’ newest hotel option
- Pearl ordering rental properties to retrofit with sprinklers, build storm shelters