AICPA Publishes Generally Accepted Privacy Policies for Use by Business and CPAs

The American Institute of Certified Public Accountants (AICPA) and the Canadian Institute of Chartered Accountants (CICA) have announced the recent release of Generally Accepted Privacy Principles (GAPP) – a Global Privacy Framework. The new GAPP is available in two versions, one for business and management and the other for CPAs in public practice that provide consulting and attestation services. This document supersedes the AICPA/CICA Privacy Framework published in 2003.

In developing the GAPP the AICPA and CICA expanded on the framework to address risk arising from international privacy considerations and outsourcing.

“Managing privacy risk can be even a more significant challenge for organizations operating in a multi-jurisdictional environment,” says Everett C. Johnson, CPA, chair of the AICPA’s Privacy Task Force and a retired partner with Deloitte & Touche LLP. “Organizations need to be aware of significant privacy requirements in all the jurisdictions in which the organization does business. In addition, the use of outsourcing, which allows businesses to focus on their core competencies while still meeting customer needs, raises significant additional privacy considerations.”

The new GAPP document includes a section that provides step-by-step guidance on how businesses and other entities can use the document. The document references domestic and international privacy regulations, incorporating complex privacy requirements into a single privacy objective supported by 10 privacy principles. Each principle is supported by objective, measurable criteria that need to be met. Examples of policy requirements, communications and controls, including monitoring controls are provided as support for the criteria.

The AICPA and CICA tracked the impact of the 2003 policy framework and found that it had been accepted and widely used:

  • As the basis for independent privacy audits by several large organizations,
  • By commercial entities in developing products and services, and
  • By business as a benchmark in creating internal privacy practices.

Several organizations worked in conjunction with the AICPA and CICA on the GAPP, including Information Systems Audit and Control Association (ISACA) and the Institute of Internal Auditors. A downloadable version of “Generally Accepted Privacy Principles; A Global Privacy Framework”can be can be found at www.aicpa.org/privacy and www.cica.ca/privacy.

You may like these other stories...

The 2014 proxy season saw significant growth in audit committee transparency, continuing a recent trend of Fortune 100 companies going beyond the minimum disclosures required, according to a new report from Ernst & Young...
The average annual salary for US finance and accounting professionals who have the Certified Management Accountant (CMA) credential has gone up slightly over the past year, according to the results of a new study from the...
As the volume of account reconciliations continues to surge, most corporate accounting and finance departments in the United States and Canada are still using a labor-intensive process to make sure their accounts’...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.