IFAC Small and Medium Practices (SMP) Committee Response to the International Ethics Standards Board for Accountants (IESBA) Exposure Draft

While the SMPC is generally supportive of the IESBA’s proposals and believes that the engagement partner objectively stepping immediately into an engagement quality review role is a critical consideration. Strict prohibition of such individual (unless a cooling-off period is served) may not be appropriate in all circumstances. We believe that the Code should continue to remain principles-based and any prohibition or limitation should apply the conceptual framework relevant to the specific circumstances.