Proposed Revisions Pertaining to Safeguards in the Code—Phase 1

IESBA

Dec 21, 2015 | Exposure Drafts and Consultation Papers

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Comments due by: Mar 21, 2016

This Exposure Draft (ED) includes enhanced requirements and application material pertaining to the application of the conceptual framework in the Code of Ethics for Professional Accountants (the Code), including safeguards.

Key enhancements proposed in the Safeguards ED, which is presented in accordance with the new structure and drafting conventions, include:

More robust and prominent requirements related to the application of the conceptual framework, including a required overall assessment of the judgments made and conclusions reached;
A clearer and more robust description of the concept of safeguards, and clarified and streamlined examples of safeguards; and
New guidance regarding the application of the concept of a “reasonable and informed third party” that is essential to properly applying the conceptual framework.