New guidance on implementing Interpretation 101-3

The AICPA's Professional Ethics Division has issued two new documents that provide guidance on understanding and implementing the general requirements of Interpretation 101-3, Performance of Nonattest Services.

The first, Guidance in Understanding the Client Competency Requirement, provides answers to the most frequently asked questions on this requirement, including what is meant by competency for purposes of the rule; how competency can be assessed, and who at the client could serve as the designated competent employee.

The second, Requirement to Document Understanding with an Attest Client, responds to questions received on the type of documentation required and includes sample documentation language.

Download the guidance at http://aicpa.org/news/2004/2004_1123.htm.

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