AICPA proposes ethics guidance for alternative practice structures

The AICPA’s Professional Ethics Executive Committee voted this week to publish an exposure draft of proposed changes to the AICPA Code of Professional Conduct related to alternative practice structures, including those involving private-equity investment.

The exposure draft will be posted online later this month, according to a news release, triggering a 120-day public comment period. If the ethics updates are approved in 2027, they would be effective one year after adoption, although firms could implement them earlier.

The code has had alternative practice structure provisions in place since 2000, but the quickened pace of private equity investment in the profession prompted PEEC to look at ways to refine and clarify rules on independence and conflicts of interest to reflect unique situations when a firm providing audit and attest services is closely aligned with an entity that has financial and operational relationships with an investor.

If approved next year, the proposed ethics updates would be effective one year after adoption, although firms could implement them earlier. PEEC is developing tools and other nonauthoritative guidance to help accounting firms, their investors and others make assessments based on the proposed rules. Learn more.