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IESBA Update


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Presentation by Ken Siong, IESBA Technical Director, for American Accounting Association, International Accounting Section, Midyear Meeting, February 19, 2016 in New Orleans, LA, USA

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IESBA Update

  1. 1. Page 1 | Proprietary and Copyrighted Information IESBA Update Ken Siong, IESBA Technical Director American Accounting Association, International Accounting Section, Midyear Meeting New Orleans, February 19, 2016
  2. 2. Page 2 | Proprietary and Copyrighted Information Committed to adopt (1) India Converging (4) Canada Indonesia Germany USA (unlisted entities) Adopted/Based on (12) Australia South Africa Brazil Saudi Arabia China South Korea Italy Mexico Japan Turkey Russia UK • Adopted or converged, or used as basis for national ethical requirements in 120+ countries • G-20 countries: Global Adoption of IESBA Code
  3. 3. Page 3 | Proprietary and Copyrighted Information • Importance of evidence-based standard setting recognized in Strategy and Work Plan • Role of academic community • Lead time needed for research • IESBA commitment to explore closer links with the academic community IESBA Strategy and Work Plan 2014-2018
  4. 4. Page 4 | Proprietary and Copyrighted Information IESBA – Current Priority Projects • Responding to non-compliance with laws and regulations – Re-ED issued May 2015; new response framework proposed – Anticipated finalization Q2 2016 • Improving structure of IESBA Code – Enhancing usability to facilitate adoption and implementation – ED Phase 1 issued Dec 2015 • Review of safeguards in the Code – Clarity, appropriateness and effectiveness of safeguards – ED Phase 1 issued Dec 2015 • Long association (partner rotation) – Re-ED issued Feb 2016; anticipated finalization Q3 2016
  5. 5. Page 5 | Proprietary and Copyrighted Information • Independence and ethics issues re fees paid to auditors – Level of audit fees for particular audit engagements (downward pressure) – Fee dependency (partner and firm levels) – Ratio of non-audit services fees to audit fees (client and firm levels) • NOCLAR – post-implementation review – Auditors and other professional accountants in public practice – PAIBs • Mandatory audit firm rotation • Collective investment vehicles Research Topics Relevant to IESBA’s Future Work
  6. 6. The Ethics Board