PEEC reviewing AICPA Code in response to new SEC independence rules

By Ken Tysiac

The AICPA Professional Ethics Executive Committee (PEEC) published a temporary policy statement Monday stating that it will evaluate whether the AICPA Code of Professional Conduct (Code) should be revised as a result of recent SEC rules amendments related to auditor independence requirements.

The SEC amendments, which take effect June 9, 2021, with early adoption permitted, were adopted in October 2020 and were designed to prevent the triggering of auditor independence rules violations in situations that don’t necessarily impair an auditor’s judgment or impartiality.

While PEEC’s evaluation is underway, according to the policy statement, PEEC will consider a member to be in compliance with the Code if the member:

  • Implements and complies with the SEC amendments; or
  • Complies with the existing Code.

This temporary enforcement policy will remain in effect until PEEC rescinds it.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

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