1. AICPAEthics Codification Project As of January 24, 2014

2. Project Objective • Create user friendly, intuitively arranged Code • Revise without making significant changes to existing requirements and restrictions • Clarity through better drafting conventions • Substantive changes will follow due process • Incorporate conceptual framework approach • Incorporate threats and safeguards • Conceptual framework only applies when no guidance in Code exists • Cannot be used to override existing requirements

3. Project Objective cont. • Incorporate references to division’s nonauthoritative guidance • Physically different – Separate parts • Part 1: Members in public practice • Part 2: Members in business • Part 3: All Other Members • On-line Codification with enhanced functionality • Project Page on aicpa.org. Contains information such as: • Mapping Documents • Informational Video and articles • Project Timeline • Drafting Guidelines www.aicpa.org/InterestAreas/ProfessionalEthics/Community/Pages/aicpa-ethics-codification-project.aspx

4. AICPA Ethics Codification Substantive Changes

5. Incorporate Conceptual Frameworks • Two New Frameworks • Conceptual Framework for Members in the Practice of Public Accounting • Conceptual Framework for Members in Business • Applied when no guidance on a particular relationship or circumstance • Violation of applicable Rule • If the member cannot demonstrate that safeguards were applied that eliminated or reduced significant threats to an acceptable level

6. Other Substantive Changes • Ethical Conflicts • Definition of Attest Client • Loans and Lending Institutions • Blind Trusts • Expanded Application • Self-Review Treat • Director Positions • False, Misleading or Deceptive Acts • Billing for a Subcontractor's Services • Attest Engagement Performed with Former Partner • Use of AICPA Awarded Designation

7. Questions Slide 7