AICPA adopts outsourcing ethics

The American Institute of CPAs has adopted ethics rules that place new requirements on members who outsource clients' work to third-party providers and broaden the definition of those providers beyond just any outside tax service bureau to any third-party service provider used by AICPA members, including independent contractors.

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

In addition, members using third-party service providers are required to enter into a contractual agreement with the provider to maintain the confidentiality of the client's information, and "to be reasonably assured" that the service provider has appropriate procedures in place to prevent the unauthorized release of confidential client information.

The new rules are effective for professional services performed on or after July 1, 2005, except for services performed pursuant to agreements in existence on June 30, 2005, that are completed by Dec. 31, 2005. Early application is encouraged.

The new standards are available at

LarsonAllen adds firm in Charlotte

Top-ranked firm Larson, Allen, Weishair & Co. LLP has merged Bullard, Blanchard, Johns PLLC into its fold, boosting its presence in Charlotte. The BBJ merger brings 13 additional members to LarsonAllen's Charlotte office, bringing its total employees to nearly 60. LarsonAllen said that it expects to grow that number to 85 in the next two years.

"BBJ joining LarsonAllen is a significant step in our goal to strengthen our already strong regional hub in Charlotte," said John Richter, principal-in-charge of LarsonAllen's Charlotte office. "In particular, the wide range of audit and tax skills they possess will be an outstanding addition to our services."

LarsonAllen, with 800 employees and $100 million in annual revenue, also has offices in Minneapolis, St. Cloud, Austin, and Brainerd, Minn; Eau Claire, Wis.; St. Louis; and Philadelphia.

Dunleavy named interim CalCPA CEO

The board of the California State Society of CPAs has appointed John V. Dunleavy, executive director of the California CPA Education Foundation, to serve as transitional chief executive of the 28,000-member organization, based here.

Dunleavy's interim appointment will fill the void left by the resignation of former CalCPA CEO Susan Waters. He will also retain his post at the foundation. Waters, who came aboard at CalCPA in 2000 after serving as executive director at the Massachusetts Bar Association, abruptly resigned last month. Her departure was effective Nov. 4.

Dunleavy said that during his stint as interim CEO, the board would search for a chief operating officer who will eventually be elevated to chief executive over both the society and the foundation. The two groups, however, would remain separate entities. Dunleavy said that the search committee hopes to have a candidate by early spring 2005.

A former high school educator and principal in the Los Angeles school district, Dunleavy has served more than 25 years at CalCPA and the Education Foundation.


In the headline of our Nov. 8-28, 2004, story on Carlin, Charron & Rosen LLP (page 36), we inadvertently misnamed the new managing partner. His correct name is Robert H Charron. Our apologies for the error.

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