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CBA weighs private-equity risks in alternative practice structures; seeks national engagement
Summary
Staff briefed the committee on alternative practice structures (APS) and private-equity investment in accounting firms, highlighting potential concerns about independence, governance and consumer transparency; the committee asked staff to continue engagement with NASBA and AICPA efforts and to develop topics for CBA comment.
The Committee on Professional Conduct on Sept. 19 discussed alternative practice structures (APS) — arrangements in which a licensed attest CPA firm operates alongside an unlicensed non-attest entity, often with private-equity investment — and asked staff to track national work and develop topics the board should consider for comment.
Assistant Executive Officer Franzella briefed the committee on why APS with private-equity involvement have become more common, citing access to capital for technology and AI, talent acquisition and succession planning. He described a common structure in which an attest firm retains licensure and provides audit and attest services while a separate non-attest entity (often owned in whole or part by private equity) provides tax,…
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