Outsourcing ethics rulings take effect

California CPA, June, 2005

New ethics rulings adopted last year by the AICPA regarding a CPA's responsibilities when outsourcing client work take effect for all professional services performed on or after July 1, 2005, except for professional services performed pursuant to agreements in existence on June 30, 2005, that are completed by Dec. 31, 2005.

Last year, the AICPA Professional Ethics Executive Committee adopted new rulings that apply to Rule 102, Integrity and Objectivity; Rule 201, General Standards; and Rule 202, Compliance with Standards.

Also, a revision was made to Ethics Ruling No. 1 under Rule 301, Confidential Client Information, expanding the definition of outsourcing beyond tax services.

For more information, visit www.aicpa.org/pubs/cpaltr/may2005/ruling.htm.>

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