SMP Committee Response to the IESBA Exposure Draft on Applicability

The IFAC Small and Medium Practices (SMP) Committee submitted this comment letter to the International Ethics Standards Board for Accountants in response to its Exposure Draft, Proposed Revisions to Clarify the Applicability of Provisions in Part C of the Extant Code to Professional Accountants in Public Practice.

While the SMP Committee is agreeable to the proposed revisions, it remains concern that professional accountants in public practice may continue to think that Part C of the Code is not applicable to them. It is only when the connection is made that accountants working in public practice may find themselves in ethically problematic circumstances that do not involve clients and, hence, face the same issues and ethical dilemmas as professional accountants in business that accountants in public practice may appreciate the implications of the extant provisions in Part C. Hence, professional accountancy organizations worldwide may need to increase their outreach and communication to ensure the message is well received.