Proposed Changes to Certain Provisions of the Code Addressing the Long Association of Personnel with an Audit or Assurance Client

IESBA
Aug 14, 2014 | Exposure Drafts and Consultation Papers
29 Pages
English

Comments due by: Nov 12, 2014

The proposals in the Exposure Draft respond to stakeholder concern about the appearance of independence and the need to ensure that the threats created by the long association of audit firm personnel with an audit client are appropriately addressed on all audit engagements.

The proposals aim to strengthen the independence provisions in the Code of Ethics for Professional Accountants (the Code). Among the proposed changes are:

  • Strengthened general provisions applicable to all audit engagements regarding the threats created by long association;
  • With respect to partner rotation, an increase in the mandatory “cooling-off” period, from two to five years, for the engagement partner on the audit of a public interest entity;
  • Strengthened restrictions on the type of activities that can be undertaken with respect to the audit client and audit engagement by any former key audit partner during the cooling-off period; and
  • A requirement to obtain the concurrence of those charged with governance regarding the application of certain exceptions to the rotation requirements.
 

Copyright © 2021 The International Federation of Accountants (IFAC). All rights reserved.

Submitted Comment Letters

1. ICAEW  (United Kingdom)
October 27, 2014

2. Nexia Australia & New Zealand
October 28, 2014

3. Institut des Reviseurs d'Entreprises/ Instituut der Bedrijfsrevisoren (IBR IRE)  (Belgium)
October 29, 2014

4. Russian Collegium of auditors  (Russian Federation)
October 29, 2014

5. Institute of Public Accountants (IPA)  (Australia)
October 31, 2014

6. Chartered Accountants Australia and New Zealand  (New Zealand)
November 2, 2014

7. Jean Thiomas Giraud  (Haiti)
November 3, 2014

8. Korean Institute of Certified Public Accountants  (Korea, Republic of)
November 5, 2014

9. Bert T. Edwards
November 6, 2014

10. Office of the Auditor-General of New Zealand  (New Zealand)
November 6, 2014

11. Pennsylvania Institute of Certified Public Accountants (PICPA)  (United States)
November 6, 2014

12. Tuffias Sandberg KSi  (South Africa)
November 6, 2014

13. Crowe Horwath International  (United States)
November 7, 2014

14. Audit Oversight Board, Securities Commission Malaysia  (Malaysia)
November 10, 2014

15. Federal Audit Oversight Authority FAOA  (Switzerland)
November 10, 2014

16. Foreningen af Statsautoriserede Revisorer (Denmark)(FSR)  (Denmark)
November 10, 2014

17. Fédération des Experts Comptables Européens (FEE)  (Belgium)
November 10, 2014

18. Schwartz Levitsky Feldman LLP  (Canada)
November 10, 2014

19. ZICA  (Zambia)
November 10, 2014

20. Association of Chartered Certified Accountants
November 11, 2014

21. DFSA  (United Arab Emirates)
November 11, 2014

22. Deloitte Touche Tohmatsu Limited  (North America )
November 11, 2014

23. Institute of Certified Public Accountants of Kenya  (Kenya)
November 11, 2014

24. Jon Grant  (United Kingdom)
November 11, 2014

25. Kreston International Limited
November 11, 2014

26. New Zealand Auditing and Assurance Standards Board  (New Zealand)
November 11, 2014

27. Nexia International
November 11, 2014

28. Pitcher Partners  (Australasia/Oceania )
November 11, 2014

29. The Institute of Chartered Accountants [Ghana]  (Ghana)
November 11, 2014

30. The Japanese Institute of Certified Public Accountants  (Japan)
November 11, 2014

31. William Buck ( A Praxity Associate Firm)  (Australia)
November 11, 2014

32. AICPA  (United States)
November 12, 2014

33. ASSIREVI  (Italy)
November 12, 2014

34. American Accounting Association, Standards Committee of the Auditing Section  (United States)
November 12, 2014

35. CPA Australia (CPA Au)  (Australia)
November 12, 2014

36. CPA Canada - Public Trust Committee  (Canada)
November 12, 2014

37. Cayman Islands Society of Professional Accountants (CISPA)  (Cayman Islands)
November 12, 2014

38. FAR - the Institute for the Accountancy Profession in Sweden  (Sweden)
November 12, 2014

39. Felikar and Associates (FKA)  (Kenya)
November 12, 2014

40. Financial Reporting Council  (United Kingdom)
November 12, 2014

41. ICAS  (United Kingdom)
November 12, 2014

42. Independent Regulatory Board for Auditors (IRBA)  (South Africa)
November 12, 2014

43. Institute of Chartered Accountants of Zimbabwe (ICAZ)  (Zimbabwe)
November 12, 2014

44. International Association of Insurance Supervisors (IAIS)
November 12, 2014

45. KPMG International
November 12, 2014

46. Keith Reilly  (Australia)
November 12, 2014

47. Malaysian Institute of Accountants  (Malaysia)
November 12, 2014

48. Mexican Institute of Public Accountants  (Mexico)
November 12, 2014

49. Moscow Audit Chamber (MAC)  (Russian Federation)
November 12, 2014

50. National Association of State Boards of Accountancy (NASBA)  (United States)
November 12, 2014

51. PKF International Limited
November 12, 2014

52. PwC
November 12, 2014

53. RSM International Limited  (United Kingdom)
November 12, 2014

54. South African Institute of Chartered Accountants  (South Africa)
November 12, 2014

55. The Institute of Chartered Accountants of Bangladesh  (Bangladesh)
November 12, 2014

56. Wirtschaftsprüferkammer  (Germany)
November 12, 2014

57. Chartered Accountants Ireland  (Ireland)
November 13, 2014

58. Grant Thornton International
November 13, 2014

59. Malta Institute of Accountants  (Malta)
November 13, 2014

60. The Institute of Chartered Accountants of Pakistan - ICAP  (Pakistan)
November 13, 2014

61. The Malaysian Institute of Certified Public Accountants (MICPA)  (Malaysia)
November 13, 2014

62. BDO Global Coordination B.V. (BDO)  (United States)
November 14, 2014

63. Dianne Azoor Hughes  (Australia)
November 17, 2014

64. Accounting Professional & Ethical Standards Board Limited-Australia (APESB)  (Australia)
November 18, 2014

65. Institut der Wirtschaftsprüfer e.V. (IDW)  (Germany)
November 18, 2014

66. Institute of Directors (IOD)  (New Zealand)
November 18, 2014

67. IFAC Small and Medium Practices (SMP) Committee
November 19, 2014

68. Altaf Noor Ali Chartered Accountants  (Pakistan)
November 22, 2014

69. Ernst & Young LLP  (Europe )
November 25, 2014

70. Hong Kong Institute of Certified Public Accountants (HKICPA)  (Hong Kong (Special Administrative Region of China))
November 25, 2014

71. Compagnie Nationale des Commissaires aux Comptes (CNCC)  (France)
November 27, 2014

72. Institute of Singapore Chartered Accountants  (Singapore)
November 27, 2014

73. ASSOCIATION OF NATIONAL ACCOUNTANTS OF NIGERIA (ANAN)  (Africa-Middle East )
November 28, 2014

74. The Netherlands Institute of Chartered Accountants (NBA)  (Netherlands)
December 4, 2014

75. International Organization of Securities Commissions (IOSCO)  (Spain)
December 6, 2014

76. Denise Silva Ferreira Juvenal  (Brazil)
December 9, 2014

77. The Institute of Chartered Accountants of Sri Lanka  (Sri Lanka)
December 22, 2014

 

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