What it is
The AICPA Code’s Independence Rule (ET 1.200) requires members in public practice to be independent of attest clients. Covered members, which include each member of the attest engagement team, must not hold direct or material indirect financial interests in the client, and other relationships (loans, employment, family) are restricted.
This form is completed by each team member for a specific engagement. SQMS No. 1 requires firms to obtain at least annual written confirmation of compliance with independence requirements from all personnel who must be independent; a per-engagement confirmation is a common additional policy.
When to use it
- Before each attest engagement team member starts work on the engagement.
- When a new person joins the team mid-engagement, including specialists and EQ reviewers.
What’s inside
- Team member, role and engagement details
- Financial interests, loans, and investments held by the member and immediate family
- Employment and family relationships with the client
- Gifts and entertainment, and any nonattest services the member performs
- Signed confirmation and partner review of any matters disclosed
Standard cited
This template follows AICPA Code ET 1.200 / SQMS 1. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Who is a covered member?
Under the AICPA Code, covered members include individuals on the attest engagement team, those who can influence the engagement, partners and managers who provide more than ten hours of nonattest services to the client in a fiscal year, partners in the office where the lead attest partner primarily practices, and the firm itself. The full definition is in ET 0.400.
Does a confirmation replace firm independence monitoring?
No. It is one control. Firms also maintain restricted entity lists, evaluate nonattest services and threats under the conceptual framework, monitor fees and track financial interests. The confirmation documents the individual’s compliance.
Related templates
- Engagement Quality Review Checklist (SQMS 2)
- Audit Planning Memo (AU-C 300)
- Peer Review Readiness Checklist
Last updated 11/04/2026. All free templates.