CPA Voice: Management responsibilities when providing information systems services

Written on Oct 22, 2020

The AICPA Professional Ethics Executive Committee voted May 5 to defer the effective date of its new interpretation, “Information Systems Services,” for one year, to Jan. 1, 2022.   Magazine cover with illustration of people holding hands around the earth.

“Also deferred were interpretations for state and local government client affiliates and leases,” writes Laura Hay, CPA, CAE in the September/October issue of CPA Voice

For years, the current interpretation provided the guidance that threats to a CPA’s independence from installing an attest client’s financial information systems could be mitigated to an acceptable level if the CPA did not design or develop the financial reporting system, and if the CPA was in compliance with the general requirements of non-attest services. The new interpretation modernizes the standard providing a description of a financial information system and expanding upon the different types of implementation services that CPAs may be asked to provide and their impact on independence.  

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