Outsourcing: The AICPA Speaks

Accounting Technology, January, 2005

Accounting firms have been nervous about client reaction to the use of offshore outsourcing services. Beginning next year, firms will have no choice but to disclose that they are sending client information to a third party.

Through new rules, adopted by its Professional Ethics Executive Committee, the American Institute of CPAs is requiring its members to inform clients-preferably in writing-before firms submit confidential client information to a third-party service provider. It also stated that AICPA members are responsible for all work performed by the service provider. Members must also plan and supervise the work of outsourcers, although existing standards were not extended. If clients object to having their data sent to outsourcers, then firms should either perform...

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