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Consistent with the original proposal issued in September 2005, the proposed interpretation states that independence would not be impaired if a member and the client agree that the unsuccessful party in a lawsuit or alternative dispute resolution (ADR) proceeding between them will pay the legal fees and expenses of the successful party. The proposed interpretation retains the conclusion that an indemnification or limitation of liability provision related to nonattest services performed for an attest client (that is, where the provision relates only to the nonattest services engagement and not the attest engagement) would not impair a memberâ€™s independence with respect to that client.
Accountants -- Legal status, laws, etc. -- United States; Accountants -- Professional ethics -- Standards -- United States; Auditors -- Professional ethics -- Standards -- United States
Accounting | Taxation
American Institute of Certified Public Accountants. Professional Ethics Executive Committee, "Omnibus proposal of Professional Ethics Division interpretations and rulings" (2006). Statements of Position. 330.