New ethics exposure draft applies to all CPAs

NEW YORK, June 19, 2007 — The Professional Ethics Executive Committee has issued an exposure draft that proposes a new Interpretation 102-7, "Other Considerations: Meeting the Objectives of the Fundamental Principles."

The interpretation is part of Rule 102, "Integrity and Objectivity," of the AICPA Code of Professional Conduct.

Download the exposure draft in its entirety.

The PEEC has also proposed a new "Framework for Meeting the Objectives of the Fundamental Principles," which is related to Interpretation Interpretation 102-7. The proposed framework provides guidance to members when faced with making decisions on ethical matters that are not explicitly addressed by the Code of Professional Conduct and applies to all members — members in public practice as well as those not in public practice (including members in business and industry, government and education).

"Under the proposed framework, where a member identifies a threat that is not clearly insignificant, the member is required to apply safeguards to eliminate the threat or reduce it to an acceptable level," reads the exposure draft's executive summary. "If a threat cannot be sufficiently mitigated through the application of safeguards, or if a member is unable to implement appropriate safeguards, the member should decline or discontinue the specific professional service."

Members and other interested parties are encouraged to comment on the proposal. Comments on the exposure draft will be accepted through Aug. 15, 2007, and should be sent to Lisa A. Snyder, director of the Professional Ethics Division, at lsnyder@aicpa.org.

This content has not yet been Rated.

To Rate content, please Login.