Exposure Drafts and Consultation Papers

• 

  Published: Aug 14, 2014
  29 Pages

  English

   

  Comments due by:
  Nov 12, 2014

  Find more publications & resources related to:
  independence, IESBA, Code of Ethics

• 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.

  Copyright © 2015 The International Federation of Accountants (IFAC). All rights reserved.

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  Proposed Changes to Certain Provisions of the Code Addressing the Long Association of Personnel with an Audit or Assurance Client (PDF | 311K)
  Date: Aug 14, 2014

   

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

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

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

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

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

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

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

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

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

  18. ZICA (Zambia)
  November 10, 2014

  19. Association of Chartered Certified Accountants
  November 11, 2014

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

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

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

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

  24. Kreston International Limited
  November 11, 2014

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

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

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

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

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

  30. AICPA (United States)
  November 12, 2014

  31. ASSIREVI (Italy)
  November 12, 2014

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

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

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

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

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

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

  38. ICAS (United Kingdom)
  November 12, 2014

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

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

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

  42. KPMG International
  November 12, 2014

  43. Keith Reilly (Australia)
  November 12, 2014

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

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

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

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

  48. PKF International Limited
  November 12, 2014

  49. PwC
  November 12, 2014

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

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

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

  53. Wirtschaftsprüferkammer (Germany)
  November 12, 2014

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

  55. Grant Thornton International
  November 13, 2014

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  Related Resources

  • 2014 Handbook of the Code of Ethics for Professional Accountants
  • IFAC SMP Committee Response to IESBA Exposure Draft: Non-Assurance Services for Audit Clients
  • Improving the Structure of the Code of Ethics for Professional Accountants
  • Proposed Changes to Certain Provisions of the Code Addressing Non-Assurance Services for Audit Clients
  • Proposed Changes to Part C of the Code Addressing Presentation of Information and Pressure to Breach the Fundamental Principles