The new AICPA ethics requirements for members who outsource work have some rather interesting twists. First, unlike an earlier proposal, the disclosure is mandatory. Also, the definition of third-party service providers has been broadened beyond an outside tax service bureau to any third-party service provider, including independent contractors (other than those that provide outside administrative support) to the CPA firm.

Under the new rules, AICPA members will have to inform their clients, preferably in writing and before providing confidential client information to the third-party service provider, that the firm will use such a third-party service provider.  The new rules clarify that AICPA members are responsible for all work performed by the service provider. 

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