The AICPA Professional Ethics Executive Committee (PEEC) has approved revisions to the AICPA Code of Professional Conduct related to compliance audits.
Compliance audits are on the rise because of pandemic relief funding and the Infrastructure Investment and Jobs Act.
PEEC took a closer look at how independence requirements are currently applied in compliance audits and found that the requirements are overly cumbersome and are not applied consistently.
To provide clarity and align the requirements with applicable threats, PEEC has approved two new definitions and one revised definition related to independence in compliance audits. The changes apply to members in public practice.
The revisions to the code will be effective for compliance audits beginning after June 15, 2023.