Proposed Revisions to the Code Relating to the Definition of Engagement Team and Group Audits

IESBA
| Exposure Drafts and Consultation Papers
English
All available Translation:
Comments due by:

The proposed revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) establish provisions that comprehensively address independence considerations for firms and individuals involved in an engagement to perform an audit of group financial statements. The proposals also address the independence implications of the change in the definition of an engagement team―a concept central to an audit of financial statements―in the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Auditing (ISA) 220, Quality Management for an Audit of Financial Statements.

Among other matters, the proposals:

  • Establish new defined terms and revise a number of existing terms, including for application with respect to independence in a group audit context.
  • Clarify and enhance the independence principles that apply to:
    • Individuals involved in a group audit.
    • Firms engaged in the group audit, including firms within and outside the group auditor firm’s network.
  • More explicitly set out the process to address a breach of an independence provision at a component auditor firm, including reinforcing the need for appropriate communication between the relevant parties and with those charged with governance of the group.
  • Align a number of provisions in the Code to conform to changes in the IAASB’s Quality Management standards.

Comments requested by May 31, 2022.
Download (780.19 KB)
Copyright © 2025 The International Federation of Accountants (IFAC). All rights reserved.

Submitted Comment Letters

  1.  ()
  2.  (Ireland)
  3.  (Australia)
  4.  (United States of America)
  5.  ()
  6.  (Germany)
  7.  (Australia)
  8.  ()
  9.  (United Kingdom)
  10. MNP LLP (MNP) (151.86 KB)
     (Canada)
  11.  (Uganda)
  12.  (Thailand)
  13.  (Singapore)
  14.  ()
  15.  (United Kingdom)
  16.  (Brazil)
  17.  (Korea)
  18.  (Hong Kong, Special Administrative Region of China)
  19.  (Botswana)
  20.  (Kosovo)
  21.  (Japan)
  22.  ()
  23.  (Botswana)
  24.  ()
  25.  (Italy)
  26.  ()
  27.  (South Africa)
  28.  (South Africa)
  29.  (United States of America)
  30.  ()
  31.  (South Africa)
  32.  (United Kingdom)
  33.  ()
  34.  ()
  35.  ()
  36.  (Canada)
  37.  ()
  38.  (Argentina)
  39.  (Argentina)
  40.  (New Zealand)
  41.  ()
  42.  (Germany)
  43.  (United States of America)
  44.  ()
  45.  (Australia)
  46.  (South Africa)
  47.  (France)
  48.  ()
  49.  (Netherlands)
  50.  (Malaysia)