Changes to the Code Addressing Certain Non-Assurance Services Provisions for Audit and Assurance Clients

IESBA
Apr 14, 2015 | Handbooks, Standards, and Pronouncements
17 Pages
ISBN 978-1-60815-214-8
English

All available Translations: Danish Spanish

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The changes in the pronouncement enhance the independence provisions in the Code of Ethics for Professional Accountants™ (the Code) by, in particular, no longer permitting auditors to provide certain prohibited non-assurance services to public interest entity (PIE) audit clients in emergency situations, and ensuring that they do not assume management responsibility when providing non-assurance services to audit clients. 

The revisions include the removal of provisions that permitted an audit firm to provide certain bookkeeping and taxation services to PIE audit clients in emergency situations, as these were susceptible to being interpreted too generally. In addition, the revised provisions include:

  • New and clarified guidance regarding what constitutes management responsibility; and
  • Clarified guidance regarding the concept of “routine or mechanical” services relating to the preparation of accounting records and financial statements for audit clients that are not PIEs.

The revisions also include corresponding changes to the Code’s non-assurance services provisions with respect to other assurance clients.

The changes will be effective April 15, 2016, with early adoption permitted. See the pronouncement below for details. See also the Basis for Conclusions

 

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