PEEC proposes revised definition of ‘attest engagement team’

The AICPA Professional Ethics Executive Committee (PEEC) issued an exposure draft proposing revisions to the definition of “attest engagement team” in the AICPA Code of Professional Conduct (the Code). The proposal is intended to align the Code’s use of “attest engagement team” with other AICPA professional standards.

PEEC is exposing the proposed revisions to gather stakeholder input on whether the definition is clear and appropriately reflects the roles that should be excluded from an attest engagement team. In particular, the ED explicitly identifies certain roles that are excluded (such as internal auditors, auditor’s external specialist, practitioner’s external specialists, referred-to auditors, and referred-to practitioners), consistent with AICPA auditing and attestation standards.

The revised definition is intended to improve consistency in how firms identify individuals who are part of the attest engagement team and subject to the “Independence Rule” and related interpretations. PEEC indicated that the revisions are intended to clarify — not change — the definition’s underlying application. However, the added specificity may affect some firms’ documentation and internal interpretations about which individuals fall inside or outside the team for particular attest engagements.

The comment deadline for the new ED is June 1. PEEC welcomes and carefully considers all feedback from members and other interested parties.

— 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.