AICPA revised its definition of a PIE to align with IESBA’s expanded definition
Classification as a PIE comes with incremental independence requirements
There are four (4) categories of a PIE, based on size and other criteria
Four categories:
- publicly traded entities
- FDIC insured depository institutions with $1 billion or more in total assets
- insurers that are subject to the NAIC Annual Financial Reporting Model Regulation and have $500 million or more in direct written and assumed premiums
- investment companies registered under the SEC Investment Company Act of 1940 and the Securities Act of 1933
Periods beginning on or after December 15, 2024, for all other PIEs
For more details, refer to Risk Management Alert 24-03.