Earlier today, the IESBA’s Long Association Post-Implementation Review (LAPIR) Working Group released a questionnaire seeking stakeholder feedback on key matters relating to Phase 1 of the LAPIR.

The questionnaire forms part of the Working Group’s information gathering and will help inform the IESBA’s review of the implementation of the five-year cooling-off requirement for engagement partners on audits of public interest entities. This review is being undertaken before the “jurisdictional provision” in the standard expires for audits of financial statements for periods beginning on or after December 15, 2023. The jurisdictional provision permits jurisdictions to apply a cooling-off period less than five years subject to specified conditions.

Click here to download an update of the LAPIR released in March 2021.

How to Participate in the Questionnaire

Click here to access the questionnaire. Please provide your response by May 31, 2021.

If you have any queries about the questionnaire or Phase 1 of the LAPIR, please contact Geoff Kwan, Principal, IESBA, at geoffkwan@ethicsboard.org.

The IESBA today released an update on its Long Association Post-Implementation Review (LAPIR). This update provides an overview of Phase 1 of the LAPIR which will review the implementation of a specific partner rotation provision for engagement partners around the world with respect to audits of public interest entities. Phase 1 commences with information gathering activities. Phase 2 is due to commence in Q2 2023.

Click here to download this update.

This update provides an overview of Phase 1 of IESBA's Long Association Post-Implementation Review (LAPIR) which will review the implementation of a specific partner rotation provision for engagement partners around the world with respect to audits of public interest entities.

Phase 1 commences with information gathering activities. Phase 2 is due to commence in Q2 2023.

The IESBA’s Rollout initiative is intended to promote awareness of, and support the adoption and effective implementation of the proposed changes to the International Independence Standards arising from the IESBA’s NAs and Fees projects. The Working Group will release materials that facilitate this initiative, such as but not limited to

The Long Association Post-Implementation Review (LAPIR) is to be carried out in two phases:

Phase 1

This phase will review the implementation status of the five-year cooling-off requirement for EPs on audits of PIEs, and any issues arising from the implementation of such requirement before the expiry of the transition period for the jurisdictional provision. 

Phase 2

The IESBA today released a new staff publication providing additional context to the Board’s recently proposed revisions to the definition of a public interest entity (PIE). This staff publication supplements the guidance material in the explanatory memorandum of the Exposure Draft Proposed Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code (PIE ED), which was released in January.

This staff publication will assist local regulators, national standard setters or other relevant local bodies in considering and planning adoption of the revised PIE definition when finalized and issued by the IESBA. The IESBA recognizes that there may be refinements to the proposals as a result of the comments received on exposure.

In addition to the staff publication, the IESBA will provide two opportunities on March 25 and 29 for stakeholders to attend a webinar to learn more about the proposals in the PIE ED. Register for either one of the webinars here.

Click here to download the staff publication.

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve 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 Code).

This publication provides additional context to the Board’s recently proposed revisions to the definition of a public interest entity (PIE) and supplements the guidance material in the explanatory memorandum of the Exposure Draft Proposed Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code (PIE ED), which was released in January.