Earlier last month, the IESBA’s Technology Task Force launched two online surveys to seek stakeholder input on key ethical questions arising from technology developments in relation to:

• Technology and complexity in the professional environment; and
• The impact of technology on auditor independence.

Responses to the surveys will help guide the IESBA’s consideration of next steps in relation to these two topics at its December 2020 Board meeting.

Review the press release on the IESBA's website.

The revisions explicitly recognize that the accountancy profession is entrusted with public confidence in the wide-ranging roles it plays in society and that such confidence is based on the skills and values it brings to its professional activities. Importantly, they reaffirm the profession’s responsibility to act in the public interest and the fundamental role of the Code in meeting that responsibility.

Among other matters, the revisions:

• Reinforce aspects of the principles of integrity, objectivity and professional behavior;
• Raise behavioral expectations of all professional accountants through requiring them to have an inquiring mind as they undertake their professional activities;
• Emphasize the importance of accountants being aware of the potential influence of bias in their judgments and decisions; and
• Highlight the supportive role the right organizational culture can play in promoting ethical conduct and business.

The “role and mindset” revisions will become effective on December 31, 2021.

Review the press release and revisions on the IESBA's website.

The EDs are aimed at strengthening the non-assurance services (NAS) and the fee-related independence provisions of the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code). The EDs represent a key milestone in two major strategic commitments of the IESBA in its current strategy and workplan.

Among the key changes proposed to the NAS provisions are:

• 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.

The NAS ED also includes enhanced guidance to assist firms in evaluating the level of threats to independence when providing NAS to audit clients. 

Among the key proposed changes to the fee-related provisions are:

•  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.

The Fees ED also includes enhanced guidance on identifying, evaluating and addressing threats to independence in relation to other fee-related matters, including the proportion of fees for services other than audit to the audit fee.

Review the press release and exposure drafts on the IESBA's website.

The report is the culmination of the first phase of fact-finding work the global ethics standard-setting board initiated in recognition of the pace and magnitude of change caused by disruptive technological innovations. The initial phase of the initiative was led by the IESBA’s Technology Working Group (TWG).

In its findings, the TWG concluded that, generally, the IESBA’s International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) currently provides high level, principles-based guidance for most technology-related ethics issues that professional accountants and firms might encounter. However, the report cites various findings and sets out recommendations grouped into five key topical areas where material in the Code could be enhanced.

The report also includes other recommendations for the next phase of the initiative, including that the IESBA conducts additional information gathering with respect to the ethical implications of other technological developments such as blockchain, cybersecurity and Internet of Things.

Review the press release and report on the IESBA's website.

The report includes:

• Chapter 1: Global financial stability overview: Markets in the time of Covid-19
• Chapter 2: Risky credit markets: Interconnecting the dots
• Chapter 3: Emerging and frontier markets: Managing volatile portfolio flows
• Chapter 4: Banking sector: Low rates, low profits?
• Chapter 5: Climate change: Physical risk and equity prices

Review the full report on the IMF's website.

The new comment deadline is June 4, 2020. Stakeholders who are able to submit their feedback by May 4, 2020, the original comment deadline, are encouraged to do so. 

The EDs were released on January 21, 2020 and include proposals aimed at strengthening the non-assurance services (NAS) and fee-related independence provisions of the International Code of Ethics for Professional Accountants (including International Independence Standards).

Review the press release on the IESBA's website.

The Report includes an update on the IESBA’s current projects and initiatives, and highlights the Board’s extensive efforts in promoting awareness, adoption, and implementation of the International Code of Ethics for Professional Accountants (including International Independence Standards).  The Report also touches on the outreach activities undertaken by the Board to extend and deepen its dialogue with stakeholders about issues relevant to elevating global ethics and building public trust in the accounting profession.

Re­view the press re­lease and related report on the IESBA's web­site.

Dis­cus­sion points in­cluded:

• Role and Mind­set
• Tax Plan­ning
• IAASB-IESBA Coordination
• Definitions of Listed Entity and Public Interest Entity (PIE)
• Tech­nol­ogy
• eCode Phase 2

Re­view the high­lights and pod­cast on the IESBA's web­site.

Discussion points included:

• Role and Mindset
• IFAC Accountancy Education Initiative
• Tax Planning and Related Services
• eCode Phase 2
• Engagement Team-Group Audits Independence
• IAASB-IESBA Coordination
• Technology
• PIE

Review the highlights and podcast on the IESBA's website.

Dis­cus­sion points in­cluded:

• Engagement Quality Reviewer Objectivity
• Non-assurance Services (NAS)
• Fee-related Provisions of the Code (Fees)
• De­f­i­n­i­tions of Listed En­tity and Pub­lic In­ter­est En­tity
• Tech­nol­ogy
• Engagement Team – Group Audits Independence
• eCode Phase 2

Re­view the high­lights and pod­cast on the IESBA's web­site.