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

Feb 28, 2022 | Exposure Drafts and Consultation Papers

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Comments due by: May 31, 2022

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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.


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Submitted Comment Letters

1. European Federation of Accountants and Auditors for SMEs (EFAA) (Europe)
May 16, 2022

2. Chartered Accountants Ireland (CAI)  (Ireland)
May 18, 2022

3. Certified Practising Accountant Australia (CPAA)  (Australia)
May 20, 2022

4. New York State Society of CPAs (NYSSCPA)  (United States)
May 23, 2022

5. IFAC Small and Medium Practices Advisory Group (IFAC SMPAG) (International)
May 23, 2022

6. Wirtschaftsprüferkammer (WPK)  (Germany)
May 24, 2022

7. Pitcher Partners (Pitcher)  (Australia)
May 26, 2022

8. Financial Reporting Council (UKFRC)  (United Kingdom)
May 27, 2022

9. International Organization of Securities Commissions (IOSCO)
May 27, 2022

10. MNP LLP (MNP)  (Canada)
May 27, 2022

11. Institute of Certified Public Accountants of Uganda (ICPAU)  (Uganda)
May 28, 2022

12. Committee of European Auditing Oversight Bodies (CEOAB) (Europe)
May 30, 2022

13. Federation of Accounting Professions (TFAC)  (Thailand)
May 30, 2022

14. Institute of Chartered Accountants in England and Wales (ICAEW)  (United Kingdom)
May 30, 2022

15. Institute of Singapore Chartered Accountants (ISCA)  (Singapore)
May 30, 2022

16. Instituto dos Auditores Independentes do Brasil (IBRACON)  (Brazil)
May 30, 2022

17. Accountancy Europe (AE)
May 31, 2022

18. Association of Italian Audit Firms (ASSIREVI)  (Italy)
May 31, 2022

19. BDO International Limited (BDO)
May 31, 2022

20. Botswana Accountancy Oversight Authority (BAOA)  (Botswana)
May 31, 2022

21. Botswana Institute of Chartered Accountants (BICA)  (Botswana)
May 31, 2022

22. Chartered Professional Accountants Canada Public Trust Committee (CPAC)  (Canada)
May 31, 2022

23. Deloitte Touche Tohmatsu Limited (DTTL) (International)
May 31, 2022

24. Hong Kong Institute of Certified Public Accountants (HKICPA)  (Hong Kong (Special Administrative Region of China))
May 31, 2022

25. Independent Regulatory Board for Auditors (IRBA)  (South Africa)
May 31, 2022

26. Institute of Chartered Accountants of Scotland (ICAS)  (United Kingdom)
May 31, 2022

27. Japan Institute of Certified Public Accountants (JICPA)  (Japan)
May 31, 2022

28. Joint Submission by Chartered Accountants Australia and New Zealand and the Association of Chartered Certified Accountants (ACCA&CAANZ) (International)
May 31, 2022

29. KPMG IFRG Limited (KPMG) (International)
May 31, 2022

30. Korean Institute of Certified Public Accountants (KICPA)  (Korea, Republic of)
May 31, 2022

31. Mazars Group (MAZARS) (International)
May 31, 2022

32. National Association of State Boards of Accountancy (NASBA)  (United States)
May 31, 2022

33. PKF International Limited (PKFI)
May 31, 2022

34. Society of Certified Accountants and Auditors of Kosovo (SCAAK)  (Kosovo)
May 31, 2022

35. South African Institute Of Professional Accountants (SAIPA)  (South Africa)
May 31, 2022

36. Pricewaterhousecoopers International (PWC)
June 1, 2022

37. Federación Argentina de Consejos Profesionales de Ciencias Económicas  (Argentina)
June 1, 2022

38. New Zealand Auditing & Assurance Standard Board (NZAuASB)  (New Zealand)
June 2, 2022

39. Ernst & Young Global Limited (EY) (International)
June 6, 2022

40. Institut der Wirtschaftspruefer in Deutschland e.V. (IDW)  (Germany)
June 7, 2022

41. United States Government Accountability Office (GAO)  (United States)
June 7, 2022

42. Accounting Professional & Ethical Standards Board (APESB)  (Australia)
June 8, 2022

43. International Forum of Independent Audit Regulators (IFIAR)
June 8, 2022

44. Compagnie Nationale des Commissaires aux Comptes (CNCC)  (France)
June 10, 2022

45. South African Institute of Chartered Accountants (SAICA)  (South Africa)
June 10, 2022

46. Grant Thornton International Ltd. (GTIL)
June 13, 2022

47. Royal Netherlands Institute of Chartered Accountants (NBA)  (Netherlands)
June 14, 2022

48. Malaysian Institute of Accountants (MIA)  (Malaysia)
June 17, 2022

49. AICPA Professional Ethics Executive Committee (PEEC)  (United States)
July 15, 2022


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