The International Ethics Standards Board for Accountants (IESBA) today released Revisions to Part 4B of the Code to Reflect Terms and Concepts Used in ISAE 3000 (Revised). Part 4B of the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) comprises the independence standards for assurance engagements other than audit and review engagements.

The revision fulfills a commitment the IESBA announced in its Strategy and Work Plan, 2019-2023 to review and change Part 4B of the Code to make the part’s provisions  consistent with the revised assurance terms and concepts in the International Auditing and Assurance Standards Board’s (IAASB’s) International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

The main revisions, developed in coordination with the IAASB, include:

• Changes in key terminology, including a revised definition of the term “assurance client”;
• Amendments to certain independence requirements in light of the revised assurance client definition;
• Greater clarity as to the parties to an assurance engagement and their roles and responsibilities, and the related independence requirements that apply; and
• A clearer distinction between the types of assurance engagement covered in Parts 4A (addressing independence for audit and review engagements) and 4B of the Code.

“It is in the public interest that Part 4B of the Code is consistent with ISAE 3000 (Revised), clear on the applicable independence requirements and, most importantly, sufficiently robust and practicable for assurance practitioners in the field,” said IESBA Chairman Dr. Stavros Thomadakis. “The successful completion of this project reflects the IESBA’s strong commitment towards enhanced communication and coordination with the IAASB, to better serve the needs of stakeholders in today’s global economy.”

About the IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

Part 4B of the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) comprises the independence standards for assurance engagements other than audit and review engagements.

Laurie C. Endsley joined as a Member of IESBA in January 2020, after being nominated by PwC. Ms. Endsley is a partner with PwC and has worked for more than 30 years as an auditor and attorney. Laurie is based in the New York office and serves as Deputy Global General Counsel and Global Chief Ethics & Compliance Officer for the PwC network. Laurie is a member of the PwC Network Risk & Quality Executive and in that capacity leads the PwC Network Monitoring Group. Laurie is also a member of the Global Regulatory Policy Board.

Laurie previously served as the general counsel for the PwC Network Assurance LOS, as the PwC Central & Eastern European Regional General Counsel & Chief Risk Officer, as well as a member of the PwC CEE Management Board. Before these assignments, she served as the Chief of Staff in the Office of the Global CEO and Global Managing Partners. Laurie also worked for PwC in Russia as General Counsel, Chief Risk & Operating Officer, and as a member of the PwC Russia leadership and board.

Laurie is a CPA and lawyer, and holds an honours undergraduate degree in accounting from Wayne State University, a J.D. cum laude from The University of Michigan Law School, and an MBA cum laude from the University of Chicago.

Richard J. Huesken joined the International Ethics Standards Board in January 2020. Rich is retired from EY, where he most recently served as the Global Independence Leader for the Ernst & Young Global Limited network, leading a multi-national team of professionals responsible for establishing independence policy, processes, and systems, monitoring of regulatory and standard setting developments, and consulting on independence matters. Rich was a member of EY’s Global Risk Management Executive Committee, Global Practice Group and Global Professional Practice Committee.

Rich has more than 42 years of audit experience in a variety of industries. He previously served as the U.S. Independence Leader and as the Professional Practice Director for two EY regions. Rich graduated summa cum laude from the University of Cincinnati with a Bachelor’s in Business Administration. He is a Certified Public Accountant.

Objective

The objectives of the IESBA’s Definitions of Listed Entity and PIE Project are:

(a)       To review, in coordination with the IAASB, the definitions of the terms “listed entity” and “PIE” in the Code with a view to revising them as necessary so that they

    remain relevant and fit for purpose; and

(b)       In doing so, to:

Highlights from the IESBA's December, 2019 meeting in New York, NY.

• 00:10 - Introduction: Diane Jules, IESBA Deputy Technical Director
• 01:04 - Highlights & Key Developments: Stavros Thomadakis, IESBA Chairman
• 04:51 - Non-Assurance Services: Richard Fleck, IESBA Deputy Chair
• 07:01 - Fees: Ian McPhee, IESBA Member
• 09:45 - Technology: Patricia Mulvaney, IESBA Member
• 14:00 - IAASB/IESBA Coordination: Sylvie Soulier, IESBA Member
• 16:08 - Final thoughts: Stavros Thomadakis, IESBA Chairman
• 16:51 - Closing Remarks: Diane Jules, IESBA Deputy Technical Director

Consistent with the SWP strategic theme “Elevating Ethics in a Dynamic and Uncertain World,” the objectives of the Task Force (TF) are to:

(a)         Gather an understanding of regulatory, practice and other developments in corporate and individual tax planning by PAIBs and PAPPs.

(b)         Identify and analyze the ethical implications of those developments and determine whether there is a need for enhancements to the Code or further actions.

A global search has begun for highly qualified volunteers to join the International Ethics Standards Board for Accountants (IESBA) as board members for an initial term of up to 3 years, commencing January 1, 2021. The search, being conducted by a nominating committee, is for five non-practitioner and public members and one practitioner member.

Candidates should have experience with issues relating to ethics and independence and sufficient knowledge of the subject matters considered by the IESBA to contribute effectively to the board’s work.

Anyone, including the general public, is invited to apply or nominate candidates. For practitioner vacancies, nominations of candidates from small- and medium-sized practices (SMPs) are strongly encouraged. For non-practitioner vacancies, the nominating committee is particularly interested in applications from: 

• preparers of financial statements;
• users of audited financial statements or assurance reports, including investor representatives;
• members of the corporate governance community;
• regulators;
• policy makers; and
• academics.

English proficiency is essential, and an emphasis will be placed on nominations from the Asia, Latin America-Caribbean and Africa-Middle East regions. Additionally, gender balance remains an area of focus for the board.

The IESBA is an independent standard-setting body that serves the public interest by setting high-quality, internationally appropriate ethics standards for professional accountants. The nominations process, with public interest oversight, aims to select the most suitable candidates for the available positions, while also aiming to achieve gender, regional and professional balance.

Deadline for submitting applications is January 31, 2020. Please visit the nominating committee’s web page for more information about the vacancies and to learn how to submit an application via our online database.