Objective

(a)     The objective of this project is to develop conforming amendments to the Code so that the Code is aligned and interoperable with IAASB’s ISQM 1 and ISQM 2.

(b)     The project is focused on relevant provisions of the Code that refer to ISQM 1 or ISQM 2, or terms and concepts used or defined in those two quality

          management standards.

The International Ethics Standards Board for Accountants (IESBA) today released for public comment the Exposure Draft, Proposed Quality Management-related Conforming Amendments to the Code.

The proposals aim to align the Code with the International Auditing and Assurance Standards Board's (IAASB's) suite of quality management standards, especially ISQM 1 and ISQM 2, through conforming amendments so that the Code is consistent and interoperable with these IAASB standards. The review has encompassed the recent revisions to the Code pertaining to Role & Mindset and the Non-assurance Services and Fee-related provisions of the Code.

This project falls under the umbrella of IAASB-IESBA coordination, a strategic commitment of the two Boards, and builds on their overarching commitment for enhanced connectivity and coordination to better serve the public interest.

For more information about IAASB's suite of quality management standards, please click here.

How to Comment

The IESBA invites all stakeholders to comment on the Exposure Draft by visiting the IESBA website. Comments are requested by October 5, 2021.

Richard Fleck served as Board Member of the International Ethics Standards Board for Accountants from 2015-2020, and as Deputy Chair and Member of the Planning Committee from 2016-2020.  He is currently Chair of the Long Association Post-Implementation Review (LAPIR) Working Group (WG).  He previously served as Task Force Chair of NOCLAR, Long Association, Role and Mindset, and NAS.  

Mr. Fleck is a consultant with the UK law firm, Herbert Smith Freehills LLP, having been a partner from 1980 until 2009. His practice embraced international corporate transactions, competition and regulation, and dispute resolution.

His external appointments include member of the UK Financial Reporting Council (2003-2015); chair of the UK Auditing Practices Board (2003-2012, having been a member of the board and its predecessor bodies since 1986); chair of the UK Financial Reporting Review Panel (2012-2015); chair of the IESBA Consultative Advisory Group (2006-2013); and non-executive director of the National Audit Office (2009-2012).

On June 16, 2021 the IESBA hosted a webinar on the fee-related revisions to the IESBA Code. In this 60-minute webinar the IESBA’s Deputy Chair and Fees Task Force member, Ms. Caroline Lee and IESBA member and the Fees Task Force Chair, Mr. Ian McPhee explain the key changes to the fee-related provisions of the Code. The revisions, which can be found here, will come into effect in December 2022.

The topics covered will include:

On June 17, 2021 the IESBA hosted a webinar on the Non-Assurance Services revisions to the IESBA Code. In this 60-minute webinar the IESBA’s Non-Assurance Services (NAS) Task Force Chair, Mr. Richard Fleck and IESBA member and NAS Task Force Member, Ms. Kim Gibson explain the key changes to the revised NAS provisions of the Code. The revisions, which can be found here, will come into effect in December 2022.

Topics covered include the: