IESBA eNews: January 2016

English
Structure of the Code Exposure Draft

The Exposure Draft includes the first application of the proposed new structure and drafting conventions for the Code. See the IESBA Update for implementation implications and the IESBA’s plan for coordinating the restructuring of the Code with its other open projects. 

COMMENT BY APRIL 18 »

Safeguards Exposure Draft

Key features of the Exposure Draft include: more robust requirements related to the application of the conceptual framework in the Code, including an assessment of judgments and conclusions made; a clearer description of the concept of safeguards; and new and enhanced guidance.

COMMENT BY MARCH 21 »

Coming Soon—Re-Exposing Long Association

The IESBA will re-expose on a limited basis certain revised provisions in Section 290 of the Code dealing with long association of audit personnel with an audit client. The Exposure Draft will open in the coming weeks with a 90-day comment period. 

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IESBA December Meeting Highlights

The most recent IESBA meeting was held November 30–December 4 in New York. Meeting highlights include updates on the Responding to Non-compliance with Laws and Regulations, Structure of the Code, Safeguards, and Long Association projects.

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IESBA Code, Part C Phase 1 Update

The IESBA has approved changes to Part C of the Code addressing professional accountants in business, including revisions to Section 320 on the preparation and presentation of information, a new Section 370 on pressure to breach the fundamental principles, and related conforming amendments to other sections. The changes will now be redrafted to align with the new format developed under the Structure project. See timeline.

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Staff Publication on Fee Pressure

IESBA staff have developed a new publication, Ethical Considerations Relating to Audit Fee Setting in the Context of Downward Fee Pressure, highlighting important considerations in the Code for auditors in relation to the setting of audit fees. It responds to stakeholder concerns regarding downward pressure on fees as a factor that can potentially adversely impact audit quality.

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Non-Compliance with Laws & Regulations Update

At its most recent meeting, the IESBA discussed significant comments from among the 76 responses received on the Exposure Draft, Responding to Non-Compliance with Laws & Regulations. The IESBA will consider and aim to finalize the revised provisions at its March 2016 meeting. The provisions will then be redrafted to align with the new format for the Code developed under the Structure project. See timeline. 

LISTEN HERE »

2015 Code of Ethics Handbook

Additions and changes to provisions in the 2015 Handbook of the Code of Ethics for Professional Accountants (log in required) come into effect in April 2016. Register or log in for access to the web-based Handbook or to purchase print copies.

ACCESS HERE»

Interview with IESBA Chair

IESBA Chairman Dr. Stavros Thomadakis recently spoke with the Institute of Singapore Chartered Accountants about his vision for the IESBA and the role of accountants in deterring corrupt behavior, among other topics. The article first appeared in IS Chartered Accountant in November 2015.

ACCESS HERE »

Deadline for 2017 Nominations

The Call for Nominations for the Independent Standard-Setting Boards in 2017 sets out upcoming opportunities for membership on the IESBA. The deadline for nominating qualified candidates along with their completed applications is January 31, 2016.

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IAASB Invites Comment

The International Auditing and Assurance Standards Board® (IAASB®) invites comment on Enhancing Audit Quality in the Public Interest: A Focus on Professional Skepticism, Quality Control, and Group Audits, which highlights potential standard-setting activities the IAASB could take to enhance audit quality. The Invitation to Comment highlights, in particular, a joint initiative among the IAASB, IESBA, and International Accounting Education Standards Board® on professional skepticism.

COMMENT BY May 16»

IESBA is Hiring. Apply Today!

The IESBA is recruiting at the Senior Technical Manager level for its staff team based in New York. Visit our website for the full job description and required skills and experience for this role. 

APPLY NOW»

Upcoming Dates
  • January 31, 2016: Deadline for Submitting Nominations for New IESBA members
  • March 7, 2016: IESBA CAG Meeting, Paris, France
  • March 14–16, 2016: IESBA Meeting, Madrid, Spain
  • March 21, 2016: Comment Period for Safeguards Exposure Draft closes
  • April 18, 2016: Comment Period for Structure Exposure Draft closes

For more info, or to register to attend a meeting as an observer, visit Ethics Board Meetings and Ethics Board CAG Meetings.

IAASB Finalizes Changes for Auditor Reporting on Special Purpose Financial Statements

New York, New York English

The International Auditing and Assurance Standards Board® (IAASB®) today released ISA™ 800 (Revised), Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks, and ISA 805 (Revised), Special Considerations—Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement.

Reporting on special purpose financial statements is linked to the IAASB’s new and revised Auditor Reporting standards issued in January 2015, in particular ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements, and new ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report. The amendments to ISA 800 and ISA 805 are limited to auditor reporting and are not intended to substantively change the underlying premise of these engagements in accordance with the extant ISAs.

“As a result of our more general work on auditor reporting, we found it necessary in the public interest to also make changes to ISA 800 and ISA 805,” explained IAASB Chairman Prof. Arnold Schilder. “Feedback from our stakeholders has helped us finalize these proposals and provide greater clarity about how the new auditor reporting enhancements apply in the context of special purpose financial statements.”

ISA 800 (Revised) and ISA 805 (Revised) will become effective at the same time as the auditor reporting standards addressing general purpose financial statements–for audits of financial statements for periods ending on or after December 15, 2016.

"The issuance of ISA 800 (Revised) and ISA 805 (Revised) marks another significant milestone in the IAASB’s continued work on the topic of auditor reporting," noted IAASB Technical Director Kathleen Healy.

“The board and its staff remain committed to promoting awareness of its new and revised Auditor Reporting standards and facilitating their effective implementation,” Ms. Healy added.

For more information, visit www.iaasb.org/auditor-reporting.

About the International Auditing and Assurance Standards Board(IAASB)
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC).

About IFAC®
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce. 

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