The Technology Working Group of the International Ethics Standards Board for Accountants (IESBA) is pleased to announce the members of the recently established IESBA Technology Experts Group (TEG).

Experienced in using and implementing technology, TEG members will act as a “sounding board” to the IESBA’s Technology Working Group, providing advice and other input to help inform the Working Group’s fact-finding work and deliverables. 

The TEG will be chaired by IESBA Member and Chair of the Technology Working Group, Mr. Brian Friedrich. TEG members are:

• Jason Bradley, Financial Reporting Council, United Kingdom
• Mary Breslin, Verracy, North America
• Danielle Cheek, MindBridge AI, North America
• Muhammad Fahad Riaz, Maglytic, Middle East
• Clinton Firth, Ernst & Young, Middle East and North Africa
• William Gee, PricewaterhouseCoopers, Mainland China and Hong Kong
• Loreal Jiles, Institute of Management Accountants, North America
• Mario Malouin, Université du Québec en Outaouais, North America

The TEG is expected to hold its first meeting before the IESBA’s June 2022 Board Meeting. The TEG will receive technical staff support from Jon Reid, Senior Technical Manager at the Australian Accounting Professional & Ethical Standards Board (APESB), a member of the IESBA-National Standard Setters liaison group.

About the IESBA’s Technology Initiatives 

The IESBA is progressing multiple technology workstreams in a coordinated manner. This includes:

• The development of technology-related revisions to the Code so that it remains relevant and fit for purpose as technology advances (the Technology project). On February 18, 2022, the IESBA released its Exposure Draft: Proposed Technology-related Revisions to the Code with a comment period until June 20, 2022.
• Fact finding to identify and assess the potential impact of technology on the behavior of professional accountants and the applicability of the Code in relation to ethics and independence.
• The development of technology-related thought leadership and other materials in relation to ethics and independence for professional accountants and the wider stakeholder community.

Additional information about the IESBA’s technology workstreams is available on the IESBA’s website.

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The International Ethics Standards Board for Accountants (IESBA) today released for public comment the Exposure Draft Proposed Revisions to the Code Relating to the Definition of Engagement Team and Group Audits.

The proposed revisions establish provisions that comprehensively address independence considerations for firms and individuals involved in an engagement to perform an audit of group financial statements. The proposals also address the independence implications of the change in the definition of an engagement team―a concept central to an audit of financial statements―in the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Auditing (ISA) 220, Quality Management for an Audit of Financial Statements.

“Auditor independence, in fact and in appearance, is fundamental to public trust and confidence in the financial statement audit, which in turn plays a major role in safeguarding the integrity of the financial system,” said IESBA Chair Ms. Gabriela Figueiredo Dias. “These proposals bring much needed clarifications and reinforcement in an area of auditor independence that can be especially challenging, given that many audits are performed for the largest and most complex groups around the world. I wish to acknowledge the close coordination with, and support of, the IAASB in developing those proposals.”

Among other matters, the proposals:

• Establish new defined terms and revise a number of existing terms, including for application with respect to independence in a group audit context.
• Clarify and enhance the independence principles that apply to:
  • Individuals involved in a group audit.
  • Firms engaged in the group audit, including firms within and outside the group auditor firm’s network.
• More explicitly set out the process to address a breach of an independence provision at a component auditor firm, including reinforcing the need for appropriate communication between the relevant parties and with those charged with governance of the group.
• Align a number of provisions in the Code to conform to changes in the IAASB’s Quality Management standards.

The development of the proposals has benefited from close coordination with the IAASB’s group audits and quality management projects.

How to Comment 

The IESBA invites all stakeholders to comment on the ET-GA ED by visiting the IESBA’s website. Comments are requested by May 31, 2022.

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).