Rule 101, Independence.The AICPA AICPA See American Institute of Certified Public Accountants (AICPA). has issued an exposure draft proposing one new and one revised interpretation under Rule 101, Independence. The first proposal is focused on the impact that certain indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from and limitation of liability provisions may have on a member's independence when included in engagement letters or other agreements entered into with a client. The second proposal would revise Ethics Interpretation 101-3, Performance of Nonattest Services, to add guidance on how the provision of forensic accounting Forensic accounting, sometimes called investigative accounting, involves the application of accounting concepts and techniques to legal problems. Forensic accountants investigate and document financial Fraud and white-collar crimes and tax compliance services affects independence. Comments are due Nov. 8. For more, visit www.aicpa.org/members/div/ethics/2006_09_omnibus omnibus: see bus. _ED.htm. |
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