AICPA Ethics Committee proposes outsourcing disclosure rule.The AICPA's Professional Ethics professional ethics, n the rules governing the conduct, transactions, and relationships within a profession and among its publics. professional ethics liability, n 1. Executive Committee is proposing revisions to the Code of Professional Conduct regarding the responsibility of members who outsource outsource verb To assign specific work to a 3rd party for a specific length of time at an set price and service level Managed care To use outside labor to perform functions–billing and collections, accounting, janitorial services, ER services to third-party service providers. The exposure draft contains proposals for two new ethics rulings and revisions to an existing ethics ruling that include the following provisions: * A requirement to inform the client, before sharing confidential confidential, adj pertaining to information that is only shared with those directly responsible for patient care. client information with the service provider, that the member may be using a third-party service provider when providing professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. to the client. This rule would include outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. to both domestic or foreign entities that the member or firm does not control and to individuals who are not employees of the member or firm. * A specific reference to a member's responsibility for all work performed by the service provider. * Broadening broad·en tr. & intr.v. broad·ened, broad·en·ing, broad·ens To make or become broad or broader. broad the application of the existing ethics ruling beyond that of an outside tax service bureau and making it applicable to any service provider used by the member. * A requirement that a member who uses a service provider should enter into a contractual agreement with that provider to ensure the confidentiality of client records. The exposure draft is available at www.aicpa.org/members/div/ethics/ed_outsourcing.htm. Comments may be submitted until Oct. 8, 2004. This article ran in the Ohio e-CPA Weekly on Aug. 18, 2004. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion