• Ethics Board Chair Jörgen Holmquist in Conversation with APESB Technical Director

    Jörgen Holmquist
    Chair, Ethics Board
    APESB
    Sydney, Australia English

    International Ethics Standards Board for Accountants (IESBA, the Ethics Board) Chair Jörgen Holmquist in conversation with Accounting Professional & Ethical Standards Board (APESB) Technical Director Channa Wijesinghe following the September 2013 Ethics Board meeting in Sydney, Australia.

    Used with permission from APESB.

    Discussion topics include:

    Opening remarks (0:00 - 0:40)

    The IESBA Code's global coverage (0:40 - 5:30)

    Suspected illegal acts (5:30 - 10:25)

    Long association of senior personnel and rotation of key audit partners (10:25 - 15:30)

    Structure of the IESBA Code (15:30 - 21:10)

    Role of National Standard Setters (21:10 - 23:25)

    Closing remarks (23:25 - 24:50)

  • IESBA Plans Roundtables—Enhancing Ethics Standards for Professional Accountants

    New York, New York English

    The International Ethics Standards Board for Accountants (IESBA, the Ethics Board) is holding a series of three global roundtables to gain additional feedback on its project to address professional accountants’ responsibilities regarding the disclosure to an appropriate authority of suspected non-compliance with laws and regulations (formerly called suspected illegal acts) by a client or employer:

    • Hong Kong S.A.R, China, on May 20, 2014;
    • Brussels, Belgium, on June 13, 2014; and
    • Washington DC, USA, on July 10, 2014.

    The Ethics Board initiated the project in response to regulatory concerns that the current confidentiality provisions in the Code of Ethics for Professional Accountants (the Code) are an impediment to whistleblowing in relation to non-compliance or suspected non-compliance with laws and regulations. The issues revolve around how to balance professional accountants’ responsibility to act in the public interest against confidentiality, one of the five fundamental principles in the Code. At the heart of the debate is what is reasonable to ask of auditors and other professional accountants within their public interest mandate.

    These events are a follow-up to the board’s August 2012 Exposure Draft, which described the circumstances in which a professional accountant would be required or expected to breach confidentiality and disclose the matter to an appropriate authority. The roundtables will bring together representatives from a broad range of stakeholder groups around the world, including regulators, investors, preparers, audit committee members, IFAC member bodies, firms and national standard setters, to share their perspectives on the Ethics Board’s indicative direction of its revised proposals on the topic.

    As space is limited, attendance is by invitation only, which will follow shortly. If you are interested in participating, we invite you to submit your expression of interest via email to KaushalGandhi@ethicsboard.org by January 31, 2014, indicating your name, job title, organization and preferred location.

    About the IESBA
    The International Ethics Standards Board for Accountants (IESBA, the Ethics Board) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the Ethics Board develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the Ethics Board are facilitated by IFAC. Please visit www.ethicsboard.org for more information.

    About IFAC
    IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

     

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    Save the Date

  • IESBA eNews: December 2013

    New York, New York English

    Thank you for signing up to receive eNews from the International Ethics Standards Board for Accountants (IESBA, the Ethics Board). This edition provides a summary of topics discussed and decisions made at the Ethics Board’s meeting held December 4-6, 2013, in New York, New York, USA. See the Meeting Page for the meeting highlights, including a podcast summary and agenda papers. Visit our podcast channel in iTunes to subscribe.

    Did you know IFAC publishes additional sector-specific electronic newsletters? Sign up for additional publications in My Subscriptions and follow us on Twitter and Facebook for additional news.

    IESBA Strategy and Work Plan 2014-2018 - Comment Period Open

    The IESBA approved for issuance its Consultation Paper, Proposed IESBA Strategy and Work Plan, 2014–2018. The IESBA invites comment from all stakeholders by February 28, 2014.

    Responding to Non-Compliance with Laws and Regulations (formerly Responding to a Suspected Illegal Act)

    Pursuant to its Exposure Draft, Responding to a Suspected Illegal Act, the Ethics Board considered revised proposals regarding a professional accountant’s responsibilities relating to responding to non-compliance with laws and regulations. Among other matters, the board discussed:

    • The approach to disclosure of non-compliance with laws and regulations to an appropriate authority;
    • The application of a materiality filter when responding to such a matter;
    • Communication between a proposed accountant and an existing accountant when there is a change in professional appointment; and
    • Documentation.

    The Ethics Board agreed on a draft of the proposed changes to the Code as a basis for further consultation with stakeholders through three roundtables to be held in Asia-Pacific, Europe, and North America (see dates/locations below). The board will consider the input received from the roundtables and a possible re-Exposure Draft at its October 2014 meeting.

    Structure of the Code

    The Ethics Board considered the preliminary report and recommendations of its Structure of the Code Working Group regarding ways to improve the usability of the Code. Among other matters, the board discussed the Working Group’s recommendations with respect to enhancing the visibility of the Code’s requirements; clarifying responsibility for compliance with the Code’s requirements; simplifying the wording in the Code; repackaging parts of the Code; and developing a web-based Code. The board also considered examples of a possible approach to restructuring the Code. The Ethics Board will receive the Working Group’s final report and recommendations at its April 2014 meeting.

    Long Association of Senior Personnel (Including Partner Rotation) with an Audit Client

    The Ethics Board considered issues and Task Force proposals with respect to possible enhancements to the long association provisions in Section 290, Independence – Audit and Review Engagements, to ensure that those provisions continue to provide robust and appropriate safeguards against the familiarity and self-interest threats arising from long association with an audit client. Among other matters, the board considered:

    • Proposed improvements to the overall framework of principles addressing long association;
    • Communication with those charged with governance;
    • With respect to the rotation decision, time served prior to becoming a key audit partner on the audit engagement; and
    • The duration of the cooling-off period and permissible activities during that period.

    The Ethics Board will continue its deliberation of the issues and Task Force proposals at its April 2014 meeting.

    Review of Part C of the Code

    The Ethics Board considered issues and Task Force proposals regarding a revised Section 320 of the Code addressing the preparation and reporting of information. Among other matters, the board discussed a proposal to strengthen the requirement to prepare or present information fairly, honestly, and in accordance with relevant professional standards; whether to deal separately with management information and external information in Section 320; and whether to prohibit professional accountants in business from preparing or presenting misleading financial information that complies with the applicable reporting framework.

    The Ethics Board will further discuss issues and Task Force proposals with respect to Section 320, as well as with respect to proposed Section 370 addressing pressure from superiors and others to engage in unethical or illegal acts, at its April 2014 meeting.

    Non-Assurance Services

    The Ethics Board considered issues and Task Force proposals with respect to:

    • The emergency exception provisions for bookkeeping and taxation services in Section 290 of the Code;
    • Clarification of the “Management Responsibilities” subsection of Section 290; and
    • Clarification of the provisions in the “Preparing Accounting Records and Financial Statements” subsection of Section 290 dealing with services of a “routine or mechanical” nature.

    The board will consider a further draft of proposed changes to the relevant subsections of the Code, and a draft paper setting out its views and positions on non-assurance services and related matters, at its April 2014 meeting.

    Emerging Issues and Outreach

    The Ethics Board approved the working process for its Emerging Issues and Outreach initiative and the Terms of Reference for its Emerging Issues and Outreach Committee to oversee the initiative going forward. The board will receive the first report from the Committee at its April 2014 meeting.

    Next Meetings and Upcoming Roundtables

    Meetings of the Ethics Board and the Ethics Board’s Consultative Advisory Group (CAG) are open to the public. The next meeting of the board will be held in Toronto, Canada, on April 7-9, 2014. The next meeting of the CAG will be held on March 10, 2014, in New York, USA.

    For more information and to register to attend an Ethics Board or Ethics Board CAG meeting as an observer, visit Ethics Board Meetings  and Ethics Board CAG Meetings respectively.

    The board will also hold three roundtables in 2014 to obtain additional stakeholder input regarding its project on responding to non-compliance with laws and regulations. The roundtables are scheduled as follows:

    • Hong Kong – May 20, 2014
    • Brussels, Belgium – June 3, 2014
    • Washington DC, USA – July 10, 2014
    2013 Handbook of the Code of Ethics

    The 2013 Handbook of the Code of Ethics for Professional Accountants is available to download or purchase. The 2013 edition contains the final revised pronouncements addressing a breach of a requirement of the Code and conflicts of interest, and the revised definition of “engagement team.” These changes will be effective in 2014; see the individual pronouncements for details. To download an electronic copy of the handbook for personal use or to purchase print copies, see Handbook of the Code of Ethics for Professional Accountants.  

  • Ethics Board Consults on Future Strategy and Work Plan

    New York, New York English

    The International Ethics Standards Board for Accountants (IESBA, the Ethics Board) today released for public consultation its Proposed Strategy and Work Plan, 2014-2018. The proposed Strategy and Work Plan builds on the strong base established by the revised Code of Ethics for Professional Accountants (the Code) issued in July 2009, which clarified requirements for all professional accountants and significantly strengthened independence requirements for auditors.

    The Consultation Paper was developed with input from a survey conducted earlier this year and other consultative activities. It lays out four proposed strategic themes to reflect the Ethics Board’s vision for the medium to longer term and to guide its work plan over the five-year period: maintaining a high-quality Code for application by professional accountants globally; promoting and facilitating the adoption and effective implementation of the Code; evolving the Code for continued relevance in a changing global environment; and increasing engagement and cooperation with key stakeholders.

    “The board’s mandate is to develop high-quality ethics standards for the profession worldwide. Therefore, the board’s primary strategic priority should be to ensure that the Code continues to be a robust set of standards in the public interest,” said Jörgen Holmquist, chair of the Ethics Board. “The board also recognizes the strategic importance of advancing adoption and effective implementation of the Code to further contribute to public trust and confidence in the profession, and of broadening and deepening stakeholder engagement as an essential ingredient to the quality of its standards and their global acceptance. It is critical that the board hears from stakeholders as to whether the actions and activities it is proposing to prioritize appropriately support these objectives.”

    The Consultation Paper includes four work streams that the Ethics Board agreed to pursue in early 2012 in response to a strategic review of external developments: a review of the Code provisions addressing long association of senior personnel with an audit client, and non-assurance services, both with respect to independence;  a review of the structure of the Code with a view to enhancing its usability and accessibility; and a review of Part C of the Code addressing professional accountants in business.

    “The proposed Strategy and Work Plan reflects the Ethics Board’s goal of further reinforcing and promoting the Code as a leading set of ethics standards for the global profession,” noted IESBA Technical Director Ken Siong, adding, “Ultimately, this consultation aims to ensure that the board’s proposed strategic priorities are aligned with the needs of its stakeholders and that it is best utilizing and directing its resources to achieve its objectives.”

    How to Comment
    The Ethics Board invites all those with an interest in international ethics standards for the accountancy profession to respond to the Consultation Paper, which includes specific questions to guide responses. To access the Consultation Paper and submit a comment, please visit the Ethics Board website at www.ethicsboard.org. Comments are requested by February 28, 2014. The Ethics Board encourages national and regional professional accountancy organizations to share the Consultation Paper with and encourage participation from their members and employees.

    About the IESBA
    The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC. Please visit www.ethicsboard.org for more information.

    About IFAC
    IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

     

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  • IESBA's Proposed Strategy and Work Plan, 2014-2018

    The IESBA invites comment from all stakeholders on its Proposed Strategy and Work Plan, 2014-2018.

    The Consultation Paper was developed with input from a survey conducted in 2013 and other consultative activities. It lays out four proposed strategic themes to reflect the Ethics Board’s vision for the medium to longer term and to guide its work plan over the five-year period:

    Published:
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  • IESBA December 2013 Meeting Highlights

    English

    Highlights from the IESBA's December 4-6, 2013 meeting in New York, New York.

    00:33 Overview 

    1:03 Long Association 

    2:50 Structure of the Code

    6:14 Non-Compliance with Laws and Regulation

    10:16 Future Strategy and Work Plan

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    IESBA December 2013 Meeting Highlights
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