Proposed Revisions to International Independence Standards

The International Ethics Standards Board for Accountants (IESBA) has announced the dates for two webinars which focus on the recently released Exposure Drafts, with proposals relating to Non-assurance services (NAS) and fees that further reinforce auditor independence.

 Please click below to register for each 60-minute webinar event.

Tuesday, March 17, 2020 from 8:30 a.m. to 9:30 a.m. EST; Overview of Proposed Revisions to the Non-Assurance Services Provisions of the Code

Thursday, March 19, 2020 from 10:00 a.m. – 11:00 a.m. EST; Overview of Proposed Revisions to the Fee-Related Provisions of the Code   

During the March 17 webinar, the NAS Task Force Chair, Mr. Richard Fleck, will explain the key NAS proposals, including:

A prohibition on providing NAS to an audit client that is a public interest entity (PIE) if a self-review threat to independence will be created;

 Further tightening of the circumstances in which materiality may be considered in determining the permissibility of a NAS;

Strengthened provisions regarding auditor communication with those charged with governance (TCWG), including, for PIEs, a requirement for NAS pre-approval by TCWG; and

Stricter requirements regarding the provision of some NAS, including certain tax and corporate finance advice.

 During the March 19 webinar, the Fees Task Force Chair Mr. Ian McPhee, will explain the significant aspects of the fee-related proposals which include:

A prohibition on firms allowing the audit fee to be influenced by the provision of services other than audit to the audit client;

In the case of PIEs, a requirement to cease to act as auditor if fee dependency on the audit client continues beyond a specified period; and

Communication of fee-related information to TCWG and to the public to assist their judgments about auditor independence.

 Do not miss out on this unique opportunity to engage with representatives of the IESBA and learn more about the NAS and fee-related proposals.

The IESBA welcomes feedback on the NAS and Fees EDs from all stakeholders, including investors and other users of financial statements, the corporate governance community, the regulatory and audit oversight community, preparers, firms, national standard setters, IFAC member bodies, academics and others.

The comment deadline for the NAS and Fees Exposure Drafts is May 4, 2020.  If you have any questions, please email Szilvia Sramko at szilviasramko@ethicsboard.org.



2 Comments

Leave a Reply