The Professional Ethics Executive Committee of the American Institute of CPAs has proposed in an exposure draft a new ethics interpretation of rules to determine whether financial interests held by a company's external auditor impair independence.

The new interpretation under Rule 101 - Independence would define financial interest, direct financial interest and indirect financial interest as used in ethics interpretation 101-1 and would provide guidance to members on determining whether financial interests should be considered direct or indirect financial interests.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access