State Board Report

January 2012

Additional guidance concerning conflicts of interest is being proposed for the “Code of Ethics for Professional Accountants,” by the International Standards Board for Accountants (IESBA), with comments due March 31, 2012. While it is proposing broadly similar guidance for professionals in both public practice (Section 220) and business (Section 310), the IESBA recognizes that conflicts of interest will arise for those in public practice in different circumstances, particularly when professional services are offered by other members of the accountant’s firm.

Kenneth Dakdduk, IESBA Chair who spoke at NASBA’s 2011 Annual Meeting, explained: “The changes should assist professional accountants in early identification of a potential conflict of interest.” As pointed out by Chair Dakdduk at NASBA’s meeting, the AICPA is considering the IESBA Code as part of its codification/convergence project and a number of states have rules that are similar to the AICPA’s.

Related News

Full Issue