Small and Medium Practices (SMP) Committee Response to the Exposure Draft: Proposed Amendments to the IAASB’s International Standards – Responding to Non-Compliance or Suspected Non-Compliance with Laws and Regulations

The IFAC SMP Committee is pleased to respond to the IAASB Exposure Draft: Proposed Amendments to the IAASB’s International Standards—Responding to Non-Compliance or Suspected Non-Compliance with Laws and Regulations. The Committee supports the IAASB and IESBA working together to consider amendments to International Standards in response to the IESBA project on NOCLAR. However, in principle, it does not support alignment of ISA 250 with the IESBA NOCLAR proposals, since these have not been finalised and, in its opinion, cannot be considered entirely uncontentious. The SMP Committee raised a number of concerns with the proposed changes to the IESBA Code, which are explained in its comment letter response to the IESBA ED.

Overall, the Committee is concerned that the proposed changes to the ISAs are not appropriately balanced as they do not acknowledge the possibility that national law and regulation may preclude the professional accountant from acting on such ethical aspects.

For specific comments, read the full comment letter below.