Exposure Drafts and Consultation Papers

• 

  Published: Aug 14, 2014
  29 Pages

  English

   

  Comments due by:
  Nov 12, 2014

• Proposed Changes to Certain Provisions of the Code Addressing the Long Association of Personnel with an Audit or Assurance Client

  The proposals in the Exposure Draft respond to stakeholder concern about the appearance of independence and the need to ensure that the threats created by the long association of audit firm personnel with an audit client are appropriately addressed on all audit engagements.

  The proposals aim to strengthen the independence provisions in the Code of Ethics for Professional Accountants (the Code). Among the proposed changes are:

  • Strengthened general provisions applicable to all audit engagements regarding the threats created by long association;
  • With respect to partner rotation, an increase in the mandatory “cooling-off” period, from two to five years, for the engagement partner on the audit of a public interest entity;
  • Strengthened restrictions on the type of activities that can be undertaken with respect to the audit client and audit engagement by any former key audit partner during the cooling-off period; and
  • A requirement to obtain the concurrence of those charged with governance regarding the application of certain exceptions to the rotation requirements.
   
  

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  Copyright © 2017 The International Federation of Accountants (IFAC). All rights reserved.

  Submitted Comment Letters

  1. ICAEW (United Kingdom)
  October 27, 2014

  2. Nexia Australia & New Zealand
  October 28, 2014

  3. Institut des Reviseurs d'Entreprises/ Instituut der Bedrijfsrevisoren (IBR IRE) (Belgium)
  October 29, 2014

  4. Russian Collegium of auditors (Russian Federation)
  October 29, 2014

  5. Institute of Public Accountants (IPA) (Australia)
  October 31, 2014

  6. Chartered Accountants Australia and New Zealand (New Zealand)
  November 2, 2014

  7. Jean Thiomas Giraud (Haiti)
  November 3, 2014

  8. Korean Institute of Certified Public Accountants  (Korea, Republic of)
  November 5, 2014

  9. Bert T. Edwards
  November 6, 2014

  10. Office of the Auditor-General of New Zealand (New Zealand)
  November 6, 2014

  11. Pennsylvania Institute of Certified Public Accountants (PICPA) (United States)
  November 6, 2014

  12. Tuffias Sandberg KSi (South Africa)
  November 6, 2014

  13. Crowe Horwath International (United States)
  November 7, 2014

  14. Audit Oversight Board, Securities Commission Malaysia (Malaysia)
  November 10, 2014

  15. Federal Audit Oversight Authority FAOA (Switzerland)
  November 10, 2014

  16. Foreningen af Statsautoriserede Revisorer (Denmark)(FSR) (Denmark)
  November 10, 2014

  17. Fédération des Experts Comptables Européens (FEE) (Belgium)
  November 10, 2014

  18. Schwartz Levitsky Feldman LLP (Canada)
  November 10, 2014

  19. ZICA (Zambia)
  November 10, 2014

  20. Association of Chartered Certified Accountants
  November 11, 2014

  21. DFSA (United Arab Emirates)
  November 11, 2014

  22. Deloitte Touche Tohmatsu Limited (North America )
  November 11, 2014

  23. Institute of Certified Public Accountants of Kenya (Kenya)
  November 11, 2014

  24. Jon Grant (United Kingdom)
  November 11, 2014

  25. Kreston International Limited
  November 11, 2014

  26. New Zealand Auditing and Assurance Standards Board (New Zealand)
  November 11, 2014

  27. Nexia International
  November 11, 2014

  28. Pitcher Partners (Australasia/Oceania )
  November 11, 2014

  29. The Institute of Chartered Accountants [Ghana] (Ghana)
  November 11, 2014

  30. The Japanese Institute of Certified Public Accountants (Japan)
  November 11, 2014

  31. William Buck ( A Praxity Associate Firm) (Australia)
  November 11, 2014

  32. AICPA (United States)
  November 12, 2014

  33. ASSIREVI (Italy)
  November 12, 2014

  34. American Accounting Association, Standards Committee of the Auditing Section (United States)
  November 12, 2014

  35. CPA Australia (CPA Au) (Australia)
  November 12, 2014

  36. CPA Canada - Public Trust Committee (Canada)
  November 12, 2014

  37. Cayman Islands Society of Professional Accountants (CISPA) (Cayman Islands)
  November 12, 2014

  38. FAR - the Institute for the Accountancy Profession in Sweden (Sweden)
  November 12, 2014

  39. Felikar and Associates (FKA) (Kenya)
  November 12, 2014

  40. Financial Reporting Council (United Kingdom)
  November 12, 2014

  41. ICAS (United Kingdom)
  November 12, 2014

  42. Independent Regulatory Board for Auditors (IRBA) (South Africa)
  November 12, 2014

  43. Institute of Chartered Accountants of Zimbabwe (ICAZ) (Zimbabwe)
  November 12, 2014

  44. International Association of Insurance Supervisors (IAIS)
  November 12, 2014

  45. KPMG International
  November 12, 2014

  46. Keith Reilly (Australia)
  November 12, 2014

  47. Malaysian Institute of Accountants (Malaysia)
  November 12, 2014

  48. Mexican Institute of Public Accountants (Mexico)
  November 12, 2014

  49. Moscow Audit Chamber (MAC) (Russian Federation)
  November 12, 2014

  50. National Association of State Boards of Accountancy (NASBA) (United States)
  November 12, 2014

  51. PKF International Limited
  November 12, 2014

  52. PwC
  November 12, 2014

  53. RSM International Limited (United Kingdom)
  November 12, 2014

  54. South African Institute of Chartered Accountants (South Africa)
  November 12, 2014

  55. The Institute of Chartered Accountants of Bangladesh (Bangladesh)
  November 12, 2014

  56. Wirtschaftsprüferkammer (Germany)
  November 12, 2014

  57. Chartered Accountants Ireland (Ireland)
  November 13, 2014

  58. Grant Thornton International
  November 13, 2014

  59. Malta Institute of Accountants (Malta)
  November 13, 2014

  60. The Institute of Chartered Accountants of Pakistan - ICAP (Pakistan)
  November 13, 2014

  61. The Malaysian Institute of Certified Public Accountants (MICPA) (Malaysia)
  November 13, 2014

  62. BDO Global Coordination B.V. (BDO) (United States)
  November 14, 2014

  63. Dianne Azoor Hughes (Australia)
  November 17, 2014

  64. Accounting Professional & Ethical Standards Board Limited-Australia (APESB) (Australia)
  November 18, 2014

  65. Institut der Wirtschaftsprüfer e.V. (IDW) (Germany)
  November 18, 2014

  66. Institute of Directors (IOD) (New Zealand)
  November 18, 2014

  67. IFAC Small and Medium Practices (SMP) Committee
  November 19, 2014

  68. Altaf Noor Ali Chartered Accountants (Pakistan)
  November 22, 2014

  69. Ernst & Young LLP (Europe )
  November 25, 2014

  70. Hong Kong Institute of Certified Public Accountants (HKICPA) (Hong Kong (Special Administrative Region of China))
  November 25, 2014

  71. Compagnie Nationale des Commissaires aux Comptes (CNCC) (France)
  November 27, 2014

  72. Institute of Singapore Chartered Accountants (Singapore)
  November 27, 2014

  73. ASSOCIATION OF NATIONAL ACCOUNTANTS OF NIGERIA (ANAN) (Africa-Middle East )
  November 28, 2014

  74. The Netherlands Institute of Chartered Accountants (NBA) (Netherlands)
  December 4, 2014

  75. International Organization of Securities Commissions (IOSCO) (Spain)
  December 6, 2014

  76. Denise Silva Ferreira Juvenal (Brazil)
  December 9, 2014

  77. The Institute of Chartered Accountants of Sri Lanka (Sri Lanka)
  December 22, 2014

   

  Related Resources

  • 2016 Handbook of the Code of Ethics for Professional Accountants
  • Exposure Draft, Limited Re-exposure of Proposed Changes to the Code Addressing the Long Association of Personnel with an Audit Client
  • IESBA Staff Draw Auditors’ Attention to Key Ethics Code Provisions When Facing Downward Pressure on Audit Fees
  • Spanish Translation of IESBA Staff Publication on Ethical Considerations Relating to Audit Fee Setting Available
  • Exposure Draft, Proposed Revisions to the Code Pertaining to the Offering and Accepting of Inducements

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