Exposure Drafts, Comment Letters, and Statements of Position
Files
Download Full Text (535 KB)
Description
The Professional Ethics Executive Committee proposes to revise Interpretation 101-5 in order to provide guidance to members with respect to the terms "loans" and "financial institution" as used in Rule 101. Investment by a member's IRA or Keogh plan in a client would be considered to impair that member's independence with respect to that client. The member's independence would not be considered impaired with respect to the financial institution provided that the checking account, savings accounts, certificates of deposit, and money market account are fully insured. The mere servicing of a member's loan by a client financial institution would not impair the member's independence with respect to the client. A member's independence would be considered impaired whether or not the member's direct financial interest in the client is placed in a blind trust. Ruling No. 62 under ET section 191 provides guidance for joint investments when both the member and client are limited partners. If a member has been engaged to prepare a tax return and the client or the member terminates the engagement before the tax return is delivered to the client, the member's responsibility is to return only those records originally provided. The committee proposed that Interpretation 201, "Shopping for Accounting or Auditing Standards," be withdrawn.
Publication Date
1987
Relational Format
Book
Keywords
Business ethics -- United States; Auditors -- Professional ethics -- Standards -- United States
Disciplines
Accounting | Taxation
Recommended Citation
American Institute of Certified Public Accountants. Professional Ethics Executive Committee, "Omnibus proposal of Professional Ethics Division interpretations and rulings ;Revision to interpretation 101-5 under rule of conduct 101, "Independence:" The meaning of certain terminology used in Rule 101-A-3;Meaning of certain terminology used in Rule 101-A-3;Ruling No. 66 under rule of conduct 101, "Independence:" Member's investment in individual retirement account or Keogh Retirement Plan;Member's investment in individual retirement account or Keogh Retirement Plan;Ruling No. 67 under rule of conduct 101, "Independence:" Member's depository relationship with client financial institution;Member's depository relationship with client financial institution;Ruling No. 68 under rule of conduct 101, "Independence:" Servicing of Loan;Servicing of Loan;Ruling No. 69 under rule of conduct 101, "Independence:" Blind Trust;Blind Trust;Ruling No. 70 under rule of conduct 101, "Independence:" Joint investment with a promoter and/or general partner;Joint investment with a promoter and/or general partner;Ruling No. 182 under rule of conduct 501, "Acts Discreditable:" Termination of engagement prior to completion;Termination of engagement prior to completion;Withdrawal of interpretation 201-3 under rule 201, "General Standards:" Shopping for Accounting or Auditing Standards;Shopping for Accounting or Auditing Standards; Exposure draft (American Institute of Certified Public Accountants), 1987, May 25" (1987). Exposure Drafts, Comment Letters, and Statements of Position. 506.
https://egrove.olemiss.edu/aicpa_sop/506
Comments
Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.