Exposure Drafts and Consultation Papers
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Published: Aug 14, 2014
29 PagesEnglish
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.
Copyright © 2018 The International Federation of Accountants (IFAC). All rights reserved.
Submitted Comment Letters
1. ICAEW (United Kingdom)
October 27, 20142. Nexia Australia & New Zealand
October 28, 20143. Institut des Reviseurs d'Entreprises/ Instituut der Bedrijfsrevisoren (IBR IRE) (Belgium)
October 29, 20144. Russian Collegium of auditors (Russian Federation)
October 29, 20145. Institute of Public Accountants (IPA) (Australia)
October 31, 20146. Chartered Accountants Australia and New Zealand (New Zealand)
November 2, 20147. Jean Thiomas Giraud (Haiti)
November 3, 20148. Korean Institute of Certified Public Accountants (Korea, Republic of)
November 5, 20149. Bert T. Edwards
November 6, 201410. Office of the Auditor-General of New Zealand (New Zealand)
November 6, 201411. Pennsylvania Institute of Certified Public Accountants (PICPA) (United States)
November 6, 201412. Tuffias Sandberg KSi (South Africa)
November 6, 201413. Crowe Horwath International (United States)
November 7, 201414. Audit Oversight Board, Securities Commission Malaysia (Malaysia)
November 10, 201415. Federal Audit Oversight Authority FAOA (Switzerland)
November 10, 201416. Foreningen af Statsautoriserede Revisorer (Denmark)(FSR) (Denmark)
November 10, 201417. Fédération des Experts Comptables Européens (FEE) (Belgium)
November 10, 201418. Schwartz Levitsky Feldman LLP (Canada)
November 10, 201419. ZICA (Zambia)
November 10, 201420. Association of Chartered Certified Accountants
November 11, 201421. DFSA (United Arab Emirates)
November 11, 201422. Deloitte Touche Tohmatsu Limited (North America )
November 11, 201423. Institute of Certified Public Accountants of Kenya (Kenya)
November 11, 201424. Jon Grant (United Kingdom)
November 11, 201425. Kreston International Limited
November 11, 201426. New Zealand Auditing and Assurance Standards Board (New Zealand)
November 11, 201427. Nexia International
November 11, 201428. Pitcher Partners (Australasia/Oceania )
November 11, 201429. The Institute of Chartered Accountants [Ghana] (Ghana)
November 11, 201430. The Japanese Institute of Certified Public Accountants (Japan)
November 11, 201431. William Buck ( A Praxity Associate Firm) (Australia)
November 11, 201432. AICPA (United States)
November 12, 201433. ASSIREVI (Italy)
November 12, 201434. American Accounting Association, Standards Committee of the Auditing Section (United States)
November 12, 201435. CPA Australia (CPA Au) (Australia)
November 12, 201436. CPA Canada - Public Trust Committee (Canada)
November 12, 201437. Cayman Islands Society of Professional Accountants (CISPA) (Cayman Islands)
November 12, 201438. FAR - the Institute for the Accountancy Profession in Sweden (Sweden)
November 12, 201439. Felikar and Associates (FKA) (Kenya)
November 12, 201440. Financial Reporting Council (United Kingdom)
November 12, 201441. ICAS (United Kingdom)
November 12, 201442. Independent Regulatory Board for Auditors (IRBA) (South Africa)
November 12, 201443. Institute of Chartered Accountants of Zimbabwe (ICAZ) (Zimbabwe)
November 12, 201444. International Association of Insurance Supervisors (IAIS)
November 12, 201445. KPMG International
November 12, 201446. Keith Reilly (Australia)
November 12, 201447. Malaysian Institute of Accountants (Malaysia)
November 12, 201448. Mexican Institute of Public Accountants (Mexico)
November 12, 201449. Moscow Audit Chamber (MAC) (Russian Federation)
November 12, 201450. National Association of State Boards of Accountancy (NASBA) (United States)
November 12, 201451. PKF International Limited
November 12, 201452. PwC
November 12, 201453. RSM International Limited (United Kingdom)
November 12, 201454. South African Institute of Chartered Accountants (South Africa)
November 12, 201455. The Institute of Chartered Accountants of Bangladesh (Bangladesh)
November 12, 201456. Wirtschaftsprüferkammer (Germany)
November 12, 201457. Chartered Accountants Ireland (Ireland)
November 13, 201458. Grant Thornton International
November 13, 201459. Malta Institute of Accountants (Malta)
November 13, 201460. The Institute of Chartered Accountants of Pakistan - ICAP (Pakistan)
November 13, 201461. The Malaysian Institute of Certified Public Accountants (MICPA) (Malaysia)
November 13, 201462. BDO Global Coordination B.V. (BDO) (United States)
November 14, 201463. Dianne Azoor Hughes (Australia)
November 17, 201464. Accounting Professional & Ethical Standards Board Limited-Australia (APESB) (Australia)
November 18, 201465. Institut der Wirtschaftsprüfer e.V. (IDW) (Germany)
November 18, 201466. Institute of Directors (IOD) (New Zealand)
November 18, 201467. IFAC Small and Medium Practices (SMP) Committee
November 19, 201468. Altaf Noor Ali Chartered Accountants (Pakistan)
November 22, 201469. Ernst & Young LLP (Europe )
November 25, 201470. Hong Kong Institute of Certified Public Accountants (HKICPA) (Hong Kong (Special Administrative Region of China))
November 25, 201471. Compagnie Nationale des Commissaires aux Comptes (CNCC) (France)
November 27, 201472. Institute of Singapore Chartered Accountants (Singapore)
November 27, 201473. ASSOCIATION OF NATIONAL ACCOUNTANTS OF NIGERIA (ANAN) (Africa-Middle East )
November 28, 201474. The Netherlands Institute of Chartered Accountants (NBA) (Netherlands)
December 4, 201475. International Organization of Securities Commissions (IOSCO) (Spain)
December 6, 201476. Denise Silva Ferreira Juvenal (Brazil)
December 9, 201477. The Institute of Chartered Accountants of Sri Lanka (Sri Lanka)
December 22, 2014Related 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
- Consultation Paper, Proposed Strategy and Work Plan, 2019-2023
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