Exposure Draft, Limited Re-exposure of Proposed Changes to the Code Addressing the Long Association of Personnel with an Audit Client

Feb 04, 2016 | Exposure Drafts and Consultation Papers

All available Translations: Japanese

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Comments due by: May 09, 2016

The Exposure Draft relates to the IESBA’s project to develop more robust and comprehensive provisions dealing with the long association of personnel with an audit or assurance client. It contains a basis for conclusions regarding proposals that have been finalized, as well as the limited re-exposure of three remaining issues, including:

  • An increase from two to five years in the cooling-off period for the engagement quality control reviewer (EQCR) on the audit of a listed entity, and to three years on the audit of a public interest entity (PIE) other than a listed entity;
  • An alternative approach to the cooling-off requirements for PIE audits in the Code of Ethics for Professional Accountants (the Code) where jurisdictions have established different but robust legislative or regulatory safeguards  to address the threats to auditor independence created by long association; and
  • A revised approach to determining how long an individual should cool off after having served either as an engagement partner (EP) or as an EQCR, or in a combination of roles, for only part of the seven-year period they have served as a Key Audit Partner.

The issues being exposed build on feedback on the first exposure draft issued in August 2014.


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Submitted Comment Letters

1. Crowe Horwath International
March 4, 2016

2. JICPA  (Japan)
April 25, 2016

3. Federation of European Accountants  (Belgium)
May 2, 2016

4. FSR - danske revisorer  (Denmark)
May 4, 2016

5. Financial Reporting Council (UK)  (United Kingdom)
May 4, 2016

6. ICAEW  (United Kingdom)
May 5, 2016

7. Audit Oversight Board, Securities Commission Malaysia  (Malaysia)
May 6, 2016

8. RSM International Limited  (United Kingdom)
May 6, 2016

9. PricewaterhouseCoopers International Ltd
May 6, 2016

10. KMPG (UK)  (United Kingdom)
May 8, 2016

11. New Zealand Auditing and Assurance Board of the Extrenal Reporting Board  (New Zealand)
May 8, 2016

12. Chartered Accountants Australia and New Zealand
May 9, 2016

13. The Malaysian Institute of Certified Public Accountants  (Malaysia)
May 9, 2016

14. ICAS  (United Kingdom)
May 9, 2016

15. Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW)  (Germany)
May 9, 2016

16. IFAC SMP Committee
May 9, 2016

17. Royal NBA, the Netherlands Institute of Chartered Accountants  (Netherlands)
May 9, 2016

18. Wirtschaftsprueferkammer  (Germany)
May 9, 2016

19. South African Institute of Chartered Accountatns  (South Africa)
May 9, 2016

20. Independent Regulatory Board for Auditors (IRBA)  (South Africa)
May 9, 2016

21. Deloitte Touche Tohmatsu Limited
May 9, 2016

22. BDO  (United Kingdom)
May 9, 2016

23. Institute of Chartered Accountants of Zimbabwe  (Zimbabwe)
May 9, 2016

24. FAR - the Institute for the Accountancy Profession in Sweden  (Sweden)
May 9, 2016

25. Institute of Certified Public Accountants of Kenya
May 9, 2016

26. Association of Chartered Certified Accountants
May 9, 2016

27. Chartered Professional Accountants of Canada  (Canada)
May 10, 2016

28. Office of the Auditor-General of New Zealand  (New Zealand)
May 11, 2016

29. Hong Kong Institute of Certified Public Accountants  (Hong Kong (Special Administrative Region of China))
May 11, 2016

30. Nexia International  (United Kingdom)
May 13, 2016

31. Grant Thornton International (GTI)  (United Kingdom)
May 13, 2016

32. Ernst & Young Global Limited
May 13, 2016

33. American Institute of CPAs  (United States)
May 15, 2016

34. Accounting Professional & Ethical Standards Board (APESB)  (Australia)
May 17, 2016

35. CPA Australia  (Australia)
May 24, 2016

36. Denise Silva Ferreira Juvenal  (Brazil)
June 5, 2016

July 8, 2016

38. Institute of Singapore Chartered Accountants (ISCA)  (Singapore)
July 18, 2016


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