![]() ![]() ![]() However, they do not necessarily need to be applied in other attest engagements that are not subject to the applicable regulators' oversight. PEEC sees the independence standards established by these regulators as appropriate for financial statement audit or review engagements. In the United States, the SEC, PCAOB, Federal Deposit Insurance Corporation (FDIC), and National Association of Insurance Commissioners (NAIC) heavily regulate the three mandatory PIE categories. The US regulatory environment related to PIEs To determine whether an entity should be considered a PIE due to significant public interest in its financial condition, ethics standard-setting bodies should consider factors such as the nature of the business, regulatory supervision, entity size, stakeholders, and potential systemic impact. The IESBA's application guidance indicates that ethics standard-setting bodies should refine these categories to align with their jurisdictions. The IESBA code also allows for a general category specified by a jurisdiction's laws, regulations, or professional standards. ![]() The new PIE definition has three mandatory categories: publicly traded entities, entities that take deposits from the public, and entities that provide insurance to the public. The IESBA revised its definitions of "listed entity" and "public interest entity." The IESBA's guidance now includes separate and more restrictive independence provisions for PIEs. This proposal revises the definition of "public interest entity" and adds a new definition for "publicly traded entity." Other times, convergence is as simple as changes to definitions. PEEC's effort to substantially converge the AICPA Code with that of the International Ethics Standards Board for Accountants (IESBA) sometimes results in new or revised interpretations of the rules. As part of the ongoing effort to align the AICPA Code of Professional Conduct (the Code) with international standards, the Professional Ethics Executive Committee (PEEC) released for public comment an exposure draft related to public interest entities (PIEs).Īs a member body of the International Federation of Accountants (IFAC), the AICPA has a responsibility to maintain alignment between AICPA professional standards and those of applicable international standard-setting bodies. ![]()
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