Proposed Revisions to the Non-Assurance Services Provisions of the Code
IESBA
Jan 21, 2020 | Exposure Drafts and Consultation Papers
174 Pages
English
Comments due by: Jun 04, 2020
Due to the COVID-19 pandemic the comment deadline is extended to June 4
The proposed revisions to the non-assurance services provisions of the code include:
- A prohibition on providing NAS to an audit client that is a public interest entity (PIE) if a self-review threat to independence will be created;
- Further tightening of the circumstances in which materiality may be considered in determining the permissibility of a NAS;
- Strengthened provisions regarding auditor communication with those charged with governance (TCWG), including, for PIEs, a requirement for NAS pre-approval by TCWG; and
- Stricter requirements regarding the provision of some NAS, including certain tax and corporate finance advice.
The NAS ED also includes enhanced guidance to assist firms in evaluating the level of threats to independence when providing NAS to audit clients.
To facilitate stakeholder review of the proposals, comments have been included alongside each paragraph to indicate the derivation of the proposed provisions, i.e., whether they are from particular paragraphs in the extant Code or represent new material. A staff-prepared Comparison Mapping Table supplements this ED to assist respondents in understanding the nature of the proposed revisions to the extant Code.
Copyright © 2021 The International Federation of Accountants (IFAC). All rights reserved.
Submitted Comment Letters
1. United Kingdom Financial Reporting Council (UKFRC) (United Kingdom)
March 16, 2020
2. United States Government Accountability Office (GAO) (United States)
April 28, 2020
3. Japan Institute of Certified Public Accountants (JICPA) (Japan)
May 1, 2020
4. National Board of Accountants & Auditors – Tanzania (NBAAT) (Tanzania, United Republic of)
May 4, 2020
5. Office of the Auditor General of New Zealand (AGNZ) (New Zealand)
May 4, 2020
6. SRA – Netherlands (SRA) (Netherlands)
May 4, 2020
7. Capital Market Authority- Saudi Arabia (CMA) (Saudi Arabia)
May 5, 2020
8. Committee of European Auditing Oversight Bodies (CEOAB) (France)
May 6, 2020
9. National Association of State Boards of Accountancy (NASBA) (United States)
May 6, 2020
10. Institute of Chartered Accountants in England and Wales (ICAEW) (United Kingdom)
May 7, 2020
11. International Forum of Independent Audit Regulators (IFIAR) (Japan)
May 11, 2020
12. European Federation of Accountants and Auditors for SMEs (EFAA) (Belgium)
May 13, 2020
13. New York State Society of CPAs (NYSSCPA) (United States)
May 20, 2020
14. Grant Thornton International Ltd. (GTI) (United States)
May 21, 2020
15. US Center for Audit Quality (CAQ) (United States)
May 21, 2020
16. Institute of Chartered Accountants Ghana (ICAG) (Ghana)
May 22, 2020
17. Wirtschaftsprüferhaus (WPK) (Germany)
May 25, 2020
18. Japan Audit & Supervisory Board Members Association (JASBMA) (Japan)
May 27, 2020
19. Baker Tilly International (BKTI) (United Kingdom)
June 1, 2020
20. Nexia International (NEXIA) (United Kingdom)
June 1, 2020
21. Association of the Italian Audit Firms (ASSIREVI) (Italy)
June 2, 2020
22. Institute of Certified Public Accountants of Uganda (ICPAU) (Uganda)
June 2, 2020
23. Institute of Internal Auditors (IIA) (United States)
June 2, 2020
24. Irish Auditing & Accounting Supervisory Authority (IAASA) (Ireland)
June 2, 2020
25. Malaysian Institute of Certified Public Accountants (MICPA) (Malaysia)
June 2, 2020
26. Crowe Global (CROWE) (United States)
June 3, 2020
27. Deloitte Touche Tohmatsu Limited (DTTL) (United States)
June 3, 2020
28. Hong Kong Institute of Certified Public Accountants (HKICPA) (Hong Kong (Special Administrative Region of China))
June 3, 2020
29. Institute of Certified Public Accountants of Rwanda (ICPAR) (Rwanda)
June 3, 2020
30. KPMG IFRG Limited (KPMG) (United Kingdom)
June 3, 2020
31. Malaysia Audit Oversight Board, Securities Commission (MAOB) (Malaysia)
June 3, 2020
32. South African Institute of Professional Accountants (SAIPA) (South Africa)
June 3, 2020
33. The Institute of Chartered Accountants of India (ICAI) (India)
June 3, 2020
34. Accountancy Europe (AE) (Belgium)
June 4, 2020
35. American Institute of Certified Public Accountants Professional Ethics Executive Committee (AICPA) (United States)
June 4, 2020
36. Auditor-General of South Africa (AGSA) (South Africa)
June 4, 2020
37. BDO International Limited (BDO) (United States)
June 4, 2020
38. Botswana Institute of Chartered Accountants (BICA) (Botswana)
June 4, 2020
39. CPA Australia (CPAA) (Australia)
June 4, 2020
40. CPA Canada Public Trust Committee (CPAC) (Canada)
June 4, 2020
41. Chartered Accountants Ireland (CAI) (Ireland)
June 4, 2020
42. Ernst & Young Global Limited (EY) (United Kingdom)
June 4, 2020
43. FAR- Institute for the Accountancy Profession in Sweden (FAR) (Sweden)
June 4, 2020
44. IFAC SMP Committee (SMPC) (United States)
June 4, 2020
45. Institut der Wirtschaftspruefer in Deutschland e.V. (IDW) (Germany)
June 4, 2020
46. Institute of Chartered Accountants of Bangladesh (ICAB) (Bangladesh)
June 4, 2020
47. Institute of Chartered Accountants of Scotland (ICAS) (United Kingdom)
June 4, 2020
48. International Organizations of Securities Commissions (IOSCO) (Spain)
June 4, 2020
50. Korean Institute of Certified Public Accountants (KICPA) (Korea, Republic of)
June 4, 2020
51. Malaysian Institute of Accountants (MIA) (Malaysia)
June 4, 2020
52. Mazars Group (MAZARS) (France)
June 4, 2020
53. Moore Global (MOORE) (United Kingdom)
June 4, 2020
54. New Zealand Auditing and Assurance Standards Board (XRB) (New Zealand)
June 4, 2020
55. Pricewaterhousecoopers International (PWC) (United Kingdom)
June 4, 2020
56. RSM International (RSM) (United Kingdom)
June 4, 2020
57. Zambia Institute of Chartered Accountants (ZICA) (Zambia)
June 4, 2020
58. Accounting Professional & Ethical Standards Board Limited (APESB) (Australia)
June 6, 2020
59. Independent Regulatory Board for Auditors (IRBA) (South Africa)
June 9, 2020
60. Inter-American Accounting Association (IAA) (Latin America)
June 9, 2020
61. South African Institute of Chartered Accountants (SAICA) (South Africa)
June 9, 2020
62. Compagnie Nationale des Commissaires aux Comptes (CNCC) (France)
June 10, 2020
63. Institute of Singapore Chartered Accountants (ISCA) (Singapore)
June 10, 2020
64. Netherlands Institute of Chartered Accountants (NBA) (Netherlands)
June 11, 2020
65. Institute of Public Accountants (IPA) (Australia)
June 16, 2020
66. Mexican Institute of Public Accountants (IMCP) (Mexico)
June 16, 2020
Related Resources
- 2015 Handbook of the Code of Ethics for Professional Accountants
- IESBA Global Webinar on the Fee-related Revisions to the IESBA Code
- IESBA Global Webinar on the Non-Assurance Services Revisions to the IESBA Code
- IESBA eNews 2021 Q2
- June 2021 IESBA Working Group Briefing Paper
