Ethics & Independence

SEC and PCAOB Requirements

Firms registered with PCAOB are required to comply with the PCAOB's Ethics & Independence Standards. The PCAOB's Interim Ethics Standards are comprised of the AICPA Code of Professional Conduct Rule 102, and interpretations and rulings thereunder, as in existence on April 16, 2003 (AICPA Professional Standards, ET §102 and §191) and certain standards of the Independence Board. Auditors of SEC issuers are also required to comply with the SEC’s rules on auditor independence.

The PCAOB's Interim Independence Standards are comprised of:

• AICPA Code of Professional Conduct Rule 101, and interpretations and rulings thereunder, as in existence on April 16, 2003 (AICPA Professional Standards, ET §101 and §191).
  
  
• Independence Standards Board (ISB) Standards numbers 1, 2, and 3, and ISB Interpretations 99.1, 00.1, and 00.2. See Applicable ISB Rules.
  
  
• SEC Rules on Auditor Independence

• Rules adopted by PCAOB on July 26, 2005 (The rules need to be read in conjunction with the technical amendments below.)
  
  
• Technical amendments issued November 22, 2005
  
  
• Implementation schedule (March 2006)
  
  
• Implementation schedule (October 2006)
  
  
• Implementation schedule (April 2007)
  
  

• Implementation schedule (July 2007)
  

• Ethics and Independence FAQs (April 2007)
  
  
• Concept Release on Rule 3523, Tax Services for Persons in Financial Reporting Oversight Roles (April 2007)
  
  

• Proposed Ethics and Independence Rule 3526, Communication with Audit Committees Concerning Independence; Proposed Amendment to Rule 3523, Tax Services for Persons in Financial Reporting Oversight Roles; Implementation Schedule for Rule 3523 (July 2007)

  
  

View the CAQ Compilation of Developments Related to the PCAOB Rules on Ethics and Independence (members only)

AICPA Requirements

Members of the AICPA are also required to comply with independence and ethical requirements of the AICPA Code of Professional Conduct.

IFAC Requirements

International Federation of Accountants (IFAC) establishes and promotes adherence to international independence and other professional standards. The AICPA is a member body of the IFAC. As a member body, you must at a minimum apply the more restrictive code of ethics rules of IFAC and incorporate them into your code.

• IFAC's Ethics Standards Board Proposal Related to Auditor Independence – Certain Aspects More Restrictive than SEC Requirements (December 2006)