Professional Ethics

PICPA Code of Professional Conduct

ET Section 101 - Independence

.01 Rule 101 – Independence.

A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by Council.
[As adopted January 12, 1988.]

Interpretations under Rule 101 — Independence

In performing an attest engagement, a member should consult the rules of his or her state board of accountancy, his or her state CPA society, the Public Company Accounting Oversight Board and the U.S. Securities and Exchange Commission (SEC) if the member's report will be filed with the SEC, the U.S. Department of Labor (DOL) if the member's report will be filed with the DOL, the Government Accountability Office (GAO) if law, regulation, agreement, policy or contract requires the member's report to be filed under GAO regulations, and any organization that issues or enforces standards of independence that would apply to the member's engagement. Such organizations may have independence requirements or rulings that differ from (e.g., may be more restrictive than) those of the PICPA.

.02 - 101-1 – Interpretation of Rule 101.

[.03] - [101-1]

[Formerly paragraph .02 renumbered by adoption of the Code of Professional Conduct on January 12, 1988. Formerly interpretation 101-1, renumbered as 101-4 and moved to paragraph .06, April 1992.]

.04 - 101-2 – Employment or association with attest clients.

.05 - 101-3 – Performance of nonattest services.

.06 - 101-4 – Honorary directorships and trusteeships of not-for-profit organization.

.07 - 101-5 – Loans from financial institution clients and related terminology.

.08 - 101-6 – The effect of actual or threatened litigation on independence.

[.09] - [101-7] – [Deleted]

[Formerly paragraph .08, renumbered by adoption of the Code of Professional Conduct on January 12, 1988.]

.10 - 101-8 – Effect on independence of financial interests in nonclients having investor or investee relationships with a covered member's client.

[.11] - [101-9] – [Deleted]

.12 - 101-10 – The effect on independence of relationships with entities included in the governmental financial statements. 

.13 - 101-11 – Modified application of rule 101 for certain engagements to issue restricted-use reports under the Statements on Standards for Attestation Engagements.

.14 - 101-12 – Independence and cooperative arrangements with clients.

[.15] - [101-13] – [Deleted]

.16 - 101-14 – The effect of alternative practice structures on the applicability of independence rules.

.17- 101-15 – Financial relationships.

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