AICPA Professional Standards, 2017, Volume 2

Founded in 1887, the American Institute of Certified Public Accountants (AICPA) represents the CPA and accounting profession nationally and globally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups and other professional organizations. The AICPA develops standards for audits of private companies and other services by CPAs; provides educational guidance materials to its members; develops and grades the Uniform CPA Examination; and monitors and enforces compliance with the accounting profession's technical and ethical standards.The AICPA's founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, a licensing status and a commitment to serving the public interest.

• STATEMENTS OF POSITION—AUDITING AND ATTESTATIONAUD Introduction 1753AUD Statements of Position—Auditing and Attestation 175510—Auditing Property/Casualty Insurance Entities’ Statutory Financial Statements—Applying Certain Requirements of the NAIC Annual Statement Instructions (SOP 92-8)15—Guidance to Practitioners in Conducting and Reporting on an Agreed-Upon Procedures Engagement to Assist Management in Evaluating the Effectiveness of Its Corporate Compliance Program (SOP 99-1)20—Auditing Health Care Third-Party Revenues and Related Receivables (SOP 00-1)25—Performing Agreed-Upon Procedures Engagements That Address Internal Control Over Derivative Transactions as Required by the New York State Insurance Law (SOP 01-3)30—Performing Agreed-Upon Procedures Engagements That Address Annual Claims Prompt Payment Reports as Required by the New Jersey Administrative Code (SOP 02-1)35—Auditing the Statement of Social Insurance (SOP 04-1)40—Attestation Engagements That Address Specified Compliance Control Objectives and Related Controls at Entities That Provide Services to Investment Companies, Investment Advisers, or Other Service Providers (SOP 07-2)45—Reporting Pursuant to the Global Investment Performance Standards (SOP 12-1)[50]—Attest Engagements on Greenhouse Gas Emissions Information (SOP 13-1) [Superseded, July 2017, by AICPA Guide Attestation Engagements on Sustainability (Information Including Greenhouse Gas Emissions Information)]55—Performing Agreed-Upon Procedures Engagements That Address the Completeness, Mapping, Consistency, or Structure of XBRL-Formatted Information (SOP 13-2)STATEMENT OF POSITION—ACCOUNTINGACC Introduction 2037ACC Statement of Position—Accounting 203910—Accounting for Costs of Activities of Not-for-Profit Organizations and State and Local Governmental Entities That Include Fund Raising (SOP 98-2)AR-C Cross-References to SSARSs 2095AR-C Introduction 2099AR-C Statements on Standards for Accounting and Review Services (Clarified) 210760—General Principles for Engagements Performed in Accordance With Statements on Standards for Accounting and Review Services70—Preparation of Financial Statements80—Compilation Engagements90—Review of Financial Statements9090—Review of Financial Statements: Accounting and Review Services Interpretation of Section 90AR-C Appendixes 2273AR-C Topical Index 2277CODE OF PROFESSIONAL CONDUCTET Code of Professional Conduct 2285ET Preface: Applicable to All Members 2287ET Part 1—Members in Public Practice 2315ET Part 2—Members in Business 2449ET Part 3—Other Members 2475ET Appendixes 2481ET Topical Index 2515BYLAWSBL Definitions 2531BL 100 Name and Purpose 2533101—Name and PurposeBL 200 Admission to, and Retention of, Membership and Association 2537210—Members220—Requirements for Admission to Membership220R—Implementing Resolution Under Section 2.2 Requirements for Admission to Membership230—Requirements for Retention of Membership230R—Implementing Resolutions Under Section 2.3 Requirements for Retention of Membership240—Certificate of Membership250—Right of Members to Describe Themselves as Such260—International Associates260R—Implementing Resolution Under Section 2.6 International AssociatesBL 300 Organization and Procedure 2557310—General320—Membership320R—Implementing Resolution Under Section 3.2 Membership330—Council340—Board of Directors340R—Implementing Resolution Under Section 3.4 Board of Directors350—Officers Elected by Council350R—Implementing Resolution Under Section 3.5 Officers Elected by Council360—Committees360R—Implementing Resolutions Under Section 3.6 CommitteesBL 400 Financial Management and Controls 2581401—Financial Management and Controls401R—Implementing Resolution Under Article 4 Financial Management and Controls410—Audit420—Committee on Audit430—Execution of Instruments on Behalf of the Institute440—Indemnification450—Dues460—Fiscal Year460R—Implementing Resolution Under Section 4.6Fiscal YearBL 500 Meetings of the Institute and the Council 2601501—Meetings of the Institute and the Council510—Meetings of the Institute520—Meetings of Council530—General Provisions Governing MeetingsBL 600 Election of Council, Board of Directors, and Officers of the Institute 2611601—Election of Council, Board of Directors, and Officers of the Institute610—Members of Council Directly Elected by Members of the Institute610R—Implementing Resolution Under Section 6.1 Members of Council Directly Elected by Members of the Institute620—Selection of Members of Council to Represent State Societies630—Election of Members-at-Large of Council, Board of Directors, Chairman of the Board, and Vice Chairman of the Board640—Forfeiture of Office for Nonattendance650—Vacancies650R—Implementing Resolution Under Section 6.5 Vacancies660—Election Meeting of Council670—Term LimitBL 700 Termination of Membership and Disciplinary Sanctions 2635701—Termination of Membership and Disciplinary Sanctions710—Resignation of Membership710R—Implementing Resolution Under Section 7.1 Resignation of Membership720—Termination of Membership for Nonpayment of Financial Obligation or for Failure to Comply With Membership-Retention Requirements720R—Implementing Resolution Under Section 7.2 Termination of Membership for Nonpayment of Financial Obligation or for Failure to Comply With Membership-Retention Requirements730—Disciplinary Action Without a Hearing730R—Implementing Resolution Under Section 7.3 Disciplinary Action Without a Hearing740—Disciplining of Member by Trial Board740R—Implementing Resolution Under Section 7.4 Disciplining of Member by Trial Board750—Reinstatement750R—Implementing Resolution Under Section 7.5 Reinstatement760—Publication of Disciplinary Action760R—Implementing Resolution Under Section 7.6 Publication of Disciplinary Action770—Disciplinary Sections Not to Be Applied RetroactivelyBL 800 Amendments 2667801—Amendments810—Proposals to Amend the Bylaws820—Proposals to Amend the Code of Professional Conduct830—Submission to Council via Board of Directors840—Submission to Membership by Mail BallotBL 900 General 2679911—[Reserved]921—A Description of the Professional Practice of Certified Public AccountantsBL Topical Index 2685U.S AUDITING—PCAOBPC Select PCAOB Releases 2695The full text of the releases issued by the PCAOB can be found in the AICPA’s PCAOB Standards and Related Rules.VALUATION SERVICESVS Statements on Standards for Valuation Services 2697100—Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset9100—Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset: Valuation Services Interpretations of Section 100CONSULTING SERVICESCS Statement on Standards for Consulting Services 2749100—Consulting Services: Definition and StandardsCS Topical Index 2755QUALITY CONTROLQC Quality Control 275710—A Firm’s System of Quality ControlPEER REVIEWPR Standards for Performing and Reporting on Peer Reviews 2791100—Standards for Performing and Reporting on Peer Reviews9100—Standards for Performing and Reporting on Peer Reviews: Interpretations of Section 100TAX SERVICESTS Tax Services 3009Preface100—Tax Return Positions9100—Tax Return Positions: Tax Services Interpretations of Section 100200—Answers to Questions on Returns300—Certain Procedural Aspects of Preparing Returns400—Use of Estimates500—Departure From a Position Previously Concluded in an Administrative Proceeding or Court Decision600—Knowledge of Error: Return Preparation and Administrative Proceedings700—Form and Content of Advice to TaxpayersAppendix: Cross-Reference of Previous and Revised StatementsTS Topical Index 3055PERSONAL FINANCIAL PLANNINGPFP Personal Financial Planning 3059100—Statement on Standards in Personal Financial Planning ServicesPFP Topical Index 3075CONTINUING PROFESSIONAL EDUCATIONCPE Continuing Professional Education 3077100—Preamble200—General Guidelines for CPAs300—Standards for CPE Program Sponsors400—GlossaryCPE Topical Index 3109