IESBA eNews - July 2019
Jul 18, 2019 | English
- Speaking Out in the Public Interest
- Role and Mindset Expected of Professional Accountants
- Non-Assurance Services
- Coordination with IAASB
- Supporting Adoption and Implementation of the Code
- Upcoming IESBA Meetings
- Want to know more?
- Upcoming Outreach and Stakeholder Engagement Activities
- The IESBA CAG Corner
1. Speaking Out in the Public Interest
Recognition as Global Leader
In the special July edition of the Institute of Chartered Accountants of India’s Journal, IESBA Chairman Dr. Stavros Thomadakis was recognized as one of the seven Global Accounting Leaders in celebration of the special Chartered Accountant Day in India. He joins the list of six other rarefied individuals who are commended for their relentless efforts to emphasize the public interest perspective that should guide the work of all professional accountants worldwide.
The International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) is critical to reinvigorating public trust in the work of professional accountants especially in the post-crisis world we live in. The continuing spate of corporate scandals in jurisdictions around the world have created or added to a trust deficit in businesses and financial and government institutions, and to some extent the profession. The Code establish the standards of behavior expected of professional accountants – the fundamental principles reflect professional accountants' commitment to act in the public interest.
The IESBA congratulates India on honoring Chartered Accountants (CAs) with a special CA Day.
Responding to Brydon Review
Together with Former International Auditing and Assurance Standards Board (IAASB) Chair, Prof. Arnold Schilder, Dr. Thomadakis submit a response to the independent report of Sir Donald Brydon based on his review of the quality and effectiveness of UK audits.
In addition to responding to the proposals in the report, the joint response letter highlights how the IESBA and the IAASB act in the public interest to support public confidence in audits of financial statements and other assurance engagements and serve to reinforce the important ethical responsibilities of professional accountants in business (PAIBs) in the external reporting ecosystem.
2. Role and Mindset Expected of Professional Accountants
The Board approved for exposure proposed revisions to the Code aimed at promoting the role, mindset and behavioral characteristics expected of all professional accountants.
The Exposure Draft is expected to be released by the end of July 2019 and will be open for public comment for 90 days.
Read more >>
The IESBA received an update on the Technology Working Group’s Q2 2019 information gathering activities and the Working Group’s preliminary observations from its analysis to date.
The IESBA will receive a further update from the Working Group at its September 2019 meeting and will consider the Working Group’s final report in December 2019.
Read more >>
4. Non-Assurance Services
The IESBA considered a first-read draft of proposed revisions to Section 600, Provision of Non-Assurance Services to an Audit Client, including the subsections.
At its September 2019 meeting, the IESBA will consider a revised set of proposals with a view to approving an exposure draft.
At its March meeting, the IESBA also considered initial proposals for possible revisions to the fee-related provisions in the Code, in particular International Independence Standards Section 410, Fees.
The IESBA will progress these deliberations at its June 2019 meeting as well, including proposed changes to fee-related provisions in the Code.
Read more >>
6. Coordination with IAASB
The IESBA was briefed on recent IAASB-IESBA coordination activities. Under the leadership of the Boards’ Coordination Liaisons, staff of the IAASB and IESBA jointly developed and implemented a more systematic way to record, inventory and monitor the various coordination work streams. IESBA members exchanged views about the progress made over the last three years with respect to coordination with the IAASB.
The IESBA also received an update on the joint IAASB-IESBA-National Standard Setters (NSS) session which was held in May 2019 in Paris, France. Among other matters, the discussion with the NSS explored how the two Boards might furtherincrease collaboration with the NSS.
The third joint meeting with the IAASB has been scheduled for September 2019.
7. Supporting Adoption and Implementation of the Code
Revised and Restructured Code Rollout
The 2018 International Code of Ethics which was revised and restructured is now effective. The IESBA received an update on the “rollout” initiatives aimed at promoting awareness and adoption and implementation of the Code, including webinars (March and April 2019) and other significant outreach activities conducted in Q2 2019.
IESBA Collaboration with IFAC
The IESBA was briefed by senior Staff of the International Federation of Accountants (IFAC) and the IESBA on efforts to strengthen and deepen the collaboration between the IFAC and the IESBA to promote adoption and implementation of the Code. Similar efforts are being pursued by IFAC staff with the staff of the other standard-setting Boards that are supported by IFAC.
Just days before launch, the IESBA received a final report on Phase 1 of the eCode initiative.The eCode is a web-based tool which includes features and functionalities that emphasize the “building blocks” approach of the Code and its scalability.
The eCode is available free-of-charge at www.IESBAeCode.org. Click here to access tutorial-styled video on the features of the eCode. Read more about the objectives of the eCode initiative, in the April 2019 publication, Preparing for the IESBA eCode. Email us with your views about the eCode at: IESBAeCode@ethicsboard.org.
Stay tuned to learn more about the scope and approach to Phase 2 of the eCode at future IESBA meetings.
8. Upcoming IESBA Meetings
September 16 - 19 | AICPA Offices, New York
December 3 - 6, 2019 | IFAC Offices, New York
Register to attend the IESBA Meeting
9. Want to know more?
Read the minutes and working papers for all our IESBA meetings. They’re a great information source about project progress and how we support and protect the public interest.
10. Upcoming Outreach and Stakeholder Engagement Activities
August 2019 | San Francisco | American Accounting Association (AAA) Conference
August 2019 | Cape Town | South Africa Institute of Professional Accountants (SAIPA) Conference
August 2019 | Singapore | Institute of Singapore Chartered Accountants (ISCA) Ethics Seminar
August 2019 | Colombia | Instituto Nacional de Concurso Público (INCP) Conference
September 2019 | Baku | Eurasian Accountants and Auditors Forum
October 2019 | China | Meeting with representatives of all stakeholders, including regulators and firms
November 2019 | Romania | Meeting with the Committee of European Auditing Oversight Bodies (CEAOB)
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11. The IESBA CAG Corner
The IESBA’s multi-stakeholder Consultative Advisory Group (CAG) is an integral and important part of the IESBA's formal process of consultation. Representatives of CAG member organizations provide advice on numerous areas, including the IESBA’s agenda, project timetable, priorities, and technical advice on projects and other matters of relevance to the activities of the IESBA.
Newly appointed CAG Chair, Gaylen R. Hansen, who has served on the CAG representing the US National Association of State Boards of Accountancy (NASBA) since 2010, will chair the next CAG meeting. The next CAG meeting will be held at the IFAC Offices in New York on September 9, 2019. Visit the CAG webpage to register as an observer and to access the minutes and working papers for all the CAG meetings.