ShindelRock’s portal settings to change under new hosting services interpretation
CPAs’ hosting services impair independence under a new interpretation adopted by the AICPA Professional Ethics Executive Committee, Hosting Services, which appears in the AICPA Code of Professional Conduct’s “Independence Rule” (ET §1.295.143) under “Nonattest Services” and applies to practitioners who provide nonattest services to attest clients.
The new interpretation, which officially took effect on July 1, 2019, explains that taking responsibility for hosting an attest client’s data or records impairs a CPA’s independence, because it narrowly interprets hosting services to mean the CPA has accepted responsibility for maintaining internal control over an attest client’s information (i.e., safeguarding information the company uses to run its business), whether financial or nonfinancial in nature. Internal control is a management function for which a CPA cannot accept responsibility and maintain independence at the same time.
In connection with the hosting interpretation to independence standards, ShindelRock’s portal is set for all documents to be removed from the portal (including tax return copies) on Day 30. Previously, the portal tax folder contents were stored longer term, however client return(s) will no longer be on the portal beyond 30 days.
If you have any questions on these standards and how they may affect your hosting services, contact your ShindelRock tax professional today.