AICPA proposes guidance on CPA indemnification.

• Position: AICPA News

The AICPA's Professional Ethics Executive Committee has issued an exposure draft of a proposed new interpretation that warns CPAs they should follow the requirements of governmental bodies, commissions or other regulatory agencies on indemnification and limitation of liability agreements with clients.

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The guidance states that certain regulators prohibit the use of various indemnification and limitation-of-liability provisions, and that entering into such an agreement with a client who is...