Definitions of Listed Entity and Public Interest Entity
The objectives of the IESBA’s Definitions of Listed Entity and PIE Project are:
(a) To review, in coordination with the IAASB, the definitions of the terms “listed entity” and “PIE” in the Code with a view to revising them as necessary so that they
remain relevant and fit for purpose; and
(b) In doing so, to:
(i) Establish agreement between the IESBA and IAASB on a common revised definition of the term “listed entity” that would be operable for both Boards’
(ii) Develop a pathway that would achieve convergence between the concepts underpinning the definition of a PIE in the Code and the description of an
ESPI in the IAASB standards to the greatest extent possible.
The project is focused on audits of financial statements and auditor independence.
- Michael Ashley, Chair, IESBA Member
- Liesbet Haustermans, IESBA Member
- Ian McPhee, IESBA Member
- Andrew Mintzer, IESBA Member
IESBA March 2020 Meeting Highlights
The IESBA considered issues and a strawman draft outlining the Task Force’s initial views and a possible approach to redefining the concept of a public interest entity (PIE) in the Code. Among other matters, the IESBA considered a proposed overarching objective for requiring more stringent independence requirements for certain entities; a proposed expanded list of categories of entities within the PIE umbrella, subject to further calibration by national regulators or other authorities; and a strengthened role for firms in evaluating whether entities should be treated as PIEs.
The IESBA will continue to work closely with the International Auditing and Assurance Standards Board (IAASB) to achieve a common revised definition of “listed entity” in both Boards’ standards and, as far as possible, convergence between the concepts of PIE in the Code and “entity of significant public interest” in the IAASB standards.
At its June 2020 meeting, the IESBA will continue its deliberations on the issues and consider revised proposals from the Task Force.