2021

Gabriela Figueiredo Dias to lead the IESBA

Oct 06, 2021

On October 6, 2021, the International Ethics Standards Board For Accountants (IESBA) announced that Ms. Gabriela Figueiredo Dias will become the first Chairwoman of the IESBA from January 1, 2022. Ms. Figueiredo Dias will succeed Dr. Stavros Thomadakis, who has led the IESBA since 2015.

Ms. Figueiredo Dias has extensive experience in international standard setting, legal and regulatory structure and governance, and academia. She currently serves as the President of the CMVM (Portuguese Securities Market Commission), the authority responsible for regulating and supervising the markets of financial instruments, covering listed companies, asset managers, auditors and investment firms. There, she provides strategic direction to the Board, manages the organization and represents it before International Organizations such as IOSCO and OECD, the European Commission and the European Securities and Markets Authority (ESMA), as well as the Portuguese Government, the National Council of Financial Supervisors and market stakeholders. She has also served as head of the international and regulatory policy department and of the issuers and financial information department at CMVM and has extensive experience in and understanding of financial regulatory frameworks. In addition, she has served as a member of the ESMA Board and Management Board, member of the IOSCO Board, Vice-Chair of the OECD Corporate Governance Committee, Chair of the ESMA Investment Management Standing Committee, and she will remain in office as non-executive President of the General Board of the University of Coimbra in Portugal. She holds a master’s degree in law from the Coimbra University Law School.

Review the press release on the IESBA’s website.

Glass Lewis: 2022 Approach to ESG Initiatives

Nov 17, 2021

On November 15, 2021, Glass Lewis released its Policy Guidelines on ESG Initiatives. These Guidelines identify factors Glass Lewis considers when making its case-by-case recommendations on shareholder proposals and related initiatives.

Review the guidelines on Glass Lewis' website and a summary on the Corporate Counsel's website.

Glass Lewis: New 2022 Policy Updates Cover Board Diversity & Post-SPAC Governance

Nov 15, 2021

On November 15, 2021, Glass Lewis released its 2022 Proxy Voting Policy Guidelines. These Guidelines address how the proxy advisor approaches matters that affect votes on director elections, auditor ratification, executive pay, and governance structures.

Review the guidelines on Glass Lewis' website and a summary on the Corporate Counsel's website.

Global Ethics Board Takes Major Step Forward in Strengthening Auditor Independence

Apr 28, 2021

On April 28, 2021, the International Ethics Standards Board for Accountants (IESBA) released revisions to the Non-Assurance Services (NAS) and fee-related provisions of the "International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code)".

The revised NAS and fee-related provisions significantly strengthen the guardrails around auditor independence in two important areas that have the potential to create incentives influencing auditor behavior—non-assurance services provided to audit clients and fees.

The package of new measures includes:

  • A far-reaching prohibition on audit firms from providing a NAS that might create a self-review threat to an audit client that is a public interest entity.
  • New provisions to enable and promote more robust engagement between auditors and those charged with governance of public interest entities about independence matters relating to NAS and fees.
  • Strengthened provisions to address undue fee dependency on audit clients.
  • Provisions to stimulate greater public transparency about fees paid by audit clients that are public interest entities to assist stakeholder judgments about auditor independence.
  • Comprehensive guidance to steer auditors’ threat assessments and actions in relation to NAS and fees.

The revised NAS and fee-related provisions become effective for audits of financial statements for periods beginning on or after December 15, 2022. Early adoption is permitted and encouraged.

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

How blockchain impacts financial reporting controls

Jan 06, 2021

The internal control environment will be different in a blockchain-enabled world, making it critical for finance stakeholders to understand the technology’s unique capabilities, risks, and benefits.

As blockchain becomes more mainstream, it’s important to focus on how this technology intersects with an organization’s system of controls over financial reporting. With careful implementation and integration of blockchain-enhanced tools, companies can leverage the technology’s distinctive capabilities to create more robust, reliable, effective, and efficient controls. At the same time, however, blockchain creates unique risks and the need for new or modified controls.

Review the full article.

How CFOs can lay the groundwork for AI

Jan 25, 2021

As they integrate AI into their processes, CFOs need to help employees see it as a collaborator, not a threat.

A growing number of CFOs are exploring AI technologies in an effort to yield greater business insights, enhance financial accuracy and predictability, and reduce labor-intensive processes in the finance function.

In fact, “AI’s ‘early adopter’ phase is ending,” according to the recently published third edition of Deloitte’s State of AI in the Enterprise report.

Review the full article.

IESBA Global Webinars on the Non-Assurance Services and Fee-related Provisions to the IESBA Code

Jun 17, 2021

On June 17, 2021, the International Ethics Standards Board for Accountants (IESBA) released recordings of two global webinars focused on the recently released revisions to the Non-Assurance Services (NAS) and Fee-related provisions of the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

Listen to both 60-minute webinars:

  • Fees Webinar – featuring Mr. Ian McPhee, IESBA Member and Fees Task Force Chair and Ms. Caroline Lee, IESBA Deputy Chair and Fees Task Force Member
  • NAS Webinar – featuring Mr. Richard Fleck, NAS Task Force Chair and Ms. Kim Gibson, IESBA Member and NAS Task Force member.

During each webinar, the IESBA Representatives explain key provisions of the revised NAS and fee-related independence standards that will come into effect in December 2022.

Review the press release on the IESBA's website.

IESBA initiates first phase of the post-implementation review of its long association international independence standard

Apr 01, 2021

On April 1, 2021, the International Ethics Standards Board for Accountants (IESBA) 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.

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

IESBA launches post-implementation review of long association international independence standard

Apr 14, 2021

On April 14, 2021, the International Ethics Standards Board for Accountants' (IESBA) Long Association Post-Implementation Review (LAPIR) Working Group released a questionnaire seeking stakeholder feedback on key matters relating to Phase 1 of the LAPIR. Responses are required by May 31, 2021.

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.

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

IESBA Meeting Highlights: December 2021 Meetings

Dec 23, 2021

In December 2021, the In­ter­na­tional Ethics Stan­dards Board for Ac­coun­tants (IESBA) re-leased the high­lights sum­mary of its vir­tual meet­ings held on November 30 – December 16, 2021.

The Agenda items in­cluded:

  • Definitions of Listed Entity & PIE
  • Quality Management (QM)-related Conforming Amendments
  • En­gage­ment Team – Group Au­dits In­de­pen­dence
  • Technology Project
  • Technology Fact Finding and Thought Leadership
  • Tax Plan­ning & Re­lated Ser­vices
  • Benchmarking
  • Long Association Post-Implementation Review (LAPIR) (Phase 1)
  • Strategy & Work Plan (Update and Preliminary Considerations)
  • Next Meeting

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

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