IESBA to assess need for standards on alternative practice structures

The International Ethics Standards Board for Accountants (IESBA), on the heels of an AICPA committee’s effort to address ethics standards related to private-equity investment in accounting firms, announced that it will gather information on the topic to determine whether it will pursue a formal standard-setting project.

In a news release announcing its plan to analyze ethics- and independence-related implications, IESBA referenced Proposed Revisions Related to Alternative Practice Structures, which was approved in December by the AICPA’s Professional Ethics Executive Committee (PEEC).

PEEC’s exposure draft is open for public comment through April 30. The ED identifies relationships and circumstances that could impair independence related to growing private-equity investment in the profession; addresses factors for evaluating threats; and suggests potential safeguards where appropriate.

IESBA said that an update on the information gathering and analysis was expected to be presented at its June meeting.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.