New ethics, independence rules on tax services, contingent fees.The PCAOB PCAOB Public Company Accounting Oversight Board has adopted new ethics ethics, in philosophy, the study and evaluation of human conduct in the light of moral principles. Moral principles may be viewed either as the standard of conduct that individuals have constructed for themselves or as the body of obligations and duties that a and independence rules addressing tax services, contingent fees Payment to an attorney for legal services that depends, or is contingent, upon there being some recovery or award in the case. The payment is then a percentage of the amount recovered—such as 25 percent if the matter is settled, or 30 percent if it proceeds to trial. , and certain related general ethics and independence standards. [ILLUSTRATION OMITTED] The board also adopted Auditing Standard No. 4, which establishes requirements that apply when an auditor is engaged to report on whether a previously reported material weakness in internal control over financial reporting continues to exist as of a date specified by management. The new rules identify three circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or in which the provision of tax services impairs an auditor's independence. A public accounting firm will be treated as not independent of their audit clients if they: * Enter into contingent fee arrangements with those clients; * Provide services related to marketing, planning or opining o·pine v. o·pined, o·pin·ing, o·pines v.tr. To state as an opinion. v.intr. To express an opinion: opined on the defendant's testimony. in favor of the tax treatment of a transaction that is a confidential transaction; and * Provide tax services to certain members of management (and immediate family members) who serve in financial reporting oversight roles at an audit client. For more information, visit www.pcaobus.org/News_and_Events/News/2005/07-26.aspx. |
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