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 June 2020 Meeting Highlights
The IESBA considered issues and revised Task Force proposals reflecting input from the IESBA’s March 2020 discussion as well as feedback from the CAG and NSS. Among other matters, the IESBA considered: a revised overarching objective clarifying that there is public interest in the financial condition of certain entities that is relevant to those entities being classified as PIEs; possible terms that might replace the term “listed entity;” a draft list of PIE categories as well as other possible categories considered by the Task Force; And the role of firms, including a proposal for a firm to include in its audit report whether the audit client has been treated as a PIE.
The IESBA will continue its deliberations on the issues and consider revised Task Force proposals in September 2020.