PEEC exposure draft seeks to clarify requirements for SSAE engagements

The AICPA Professional Ethics Executive Committee (PEEC) on Thursday released an exposure draft of proposed revisions to the AICPA Code of Professional Conduct (the Code). The exposure draft is the first of a five-phase approach to clarify independence requirements for engagements subject to the Statements on Standards for Attestation Engagements (SSAEs).

Comments are due Sept. 5 and should be emailed to ethics-exposuredraft@aicpa.org.

Clarifications for SSAE engagements

Phase 1 focuses on clarifying how independence requirements apply to SSAE engagements. Most independence interpretations in the Code have been written from the perspective of performing a financial statement audit or review engagement. However, these interpretations apply to any attest engagement, including SSAE engagements, which often involve different subject matters and reporting requirements.

To clarify the guidance, PEEC is proposing the following changes:

• New definition and related revisions: The defined term “period covered by the attest report” replaces the phrase “period covered by the financial statements” to provide greater clarity and consistency in application for any attest engagement.
• Revisions to reflect application to SSAE engagements: Revisions to various interpretations include terminology applicable to SSAE engagements, ensuring that the Code’s requirements are clear and relevant to these types of engagements.
• Examples for SSAE engagements: Additional examples illustrate how independence requirements apply to SSAE engagements.

The proposed revisions in this phase do not change the intended application of current requirements. For details on planned future phases, see the appendix in the exposure draft.

PEEC is requesting feedback from members, regulators, and other interested parties on specific topics, including whether proposed changes are consistent with regulatory requirements and whether any go beyond clarification and would result in changes in the application of existing requirements.

— Kelly D. Mullins is the communications manager for the AICPA Professional Ethics Division. To comment on this article or to suggest an idea for another article, contact Neil Amato at Neil.Amato@aicpa-cima.com.