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

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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 © 2020 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

49. Joint Submission by Chartered Accountants Australia and New Zealand and the Association of Chartered Certified Accountants (ACCA&CAANZ) (Australia & New Zealand)
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

 

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