AICPA Ethics Committee proposes outsourcing disclosure rule.

• Position: National

The AICPA's Professional Ethics Executive Committee is proposing revisions to the Code of Professional Conduct regarding the responsibility of members who outsource services to third-party service providers. The exposure draft contains proposals for two new ethics rulings and revisions to an existing ethics ruling that include the following provisions:

* A requirement to inform the client, before sharing confidential client information with the service provider, that the member may be using a third-party service provider when providing professional services to the client. This rule would include outsourcing to both domestic or foreign entities that the member or firm does not control and to individuals who are not employees of the member or firm.

* A specific reference to a member's responsibility for all work performed by the...