Skip to main content

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

Feb 4, 2016 | Exposure Drafts and Consultation Papers
All available Translation:
Comments due by:

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.

Copyright © 2023 The International Federation of Accountants (IFAC). All rights reserved.

Submitted Comment Letters

  1.  ()
  2. JICPA (248.81 KB)
  3.  (Belgium)
  4.  (Denmark)
  5.  (United Kingdom)
  6. ICAEW (255.74 KB)
     (United Kingdom)
  7.  (Malaysia)
  8.  (United Kingdom)
  9.  ()
  10.  (New Zealand)
  11. KMPG (UK) (35.83 KB)
     (United Kingdom)
  12.  ()
  13.  (Malaysia)
  14. ICAS (355.97 KB)
     (United Kingdom)
  15.  (Germany)
  16.  (Netherlands)
  17.  (Germany)
  18.  (South Africa)
  19.  (South Africa)
  20.  ()
  21. BDO (244.53 KB)
     (United Kingdom)
  22.  (Zimbabwe)
  23.  (Sweden)
  24.  ()
  25.  ()
  26. IFAC SMP Committee (61.56 KB)
  27.  (Canada)
  28.  (New Zealand)
  29.  (Hong Kong, Special Administrative Region of China)
  30.  ()
  31.  (United Kingdom)
  32.  (United Kingdom)
  33.  (United States of America)
  34.  (Australia)
  35. CPA Australia (1.11 MB)
  36.  (Brazil)
  37. IOSCO (640.4 KB)
  38.  (Singapore)