The NYSSCPA, in a Dec. 8 comment letter, expressed concern that the Financial Accounting Standards Board’s (FASB) two proposed changes to materiality standards would actually add more complexity and cost to financial reporting, rather than streamlining it.

The AICPA has adopted “Breach of an Independence Interpretation” (1.298.010), which assists members and members’ firms in addressing a breach of the independence rules. This new interpretation of the Code of Professional Conduct sets forth how an identified breach should be communicated within the firm and how the responsible individual in the firm should evaluate whether the breach can be satisfactorily addressed, or whether an attest engagement should be terminated. 

There are two questions that often arise within the profession: When is a CPA prohibited from accepting a contingent fee? And where can one find the rules regarding it? The answers to both, however, are fairly straightforward. 

NYSSCPA members who provide tax services to clients, including tax return preparation, and represent clients before the IRS and New York state, are subject to various rules from a variety of sources. These include the AICPA Code of Professional Conduct, which the NYSSCPA adopted as its own conduct code in May 2013; the AICPA Statements on Standards for Tax Practice; the New York State Board of Regents (NYS Accountancy Regulations); and Circular 230, which describes rules governing practice before the IRS for CPAs and other authorized practitioners, including attorneys and enrolled agents.