This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Conforming Amendments to the IAASB’s International Auditing Standards as a Result of the Revised IESBA Code [ED]

IAASB: Comment period ended January 10, 2020

AASB: Comment are requested by March 27, 2020

Next Steps:

Both the IAASB and the AASB are reviewing the comments on their respective Exposure Drafts

Last up­dated:

January 2020

Overview

    The IAASB's International Standards (the ISAs) refer to the IESBA Code in various ways, ranging from simple references to the title of the IESBA Code to detailed references to specific paragraphs in the IESBA Code as it existed before April 2018.

    The revised IESBA Code was issued and is effective from June 15, 2019. The IESBA's Basis for Conclusions, Improving the Structure of the Code of Ethics for Professional Accountants, indicates that the IESBA was careful to not inadvertently change the meaning of the IESBA Code or weaken it.

    A project to update the IAASB Handbook for the revised IESBA Code is necessary to address inconsistencies between the International Standards in the Handbook and the revised IESBA Code. The purpose of making the revisions is solely to align the extant wording with the revised IESBA Code and not to re-evaluate or discuss the merits of each reference, thus ensuring that the International Standards can continue to be applied effectively together with the revised IESBA Code. Hence, these amendments are limited in nature, as developing them does not involve re-consideration of the objectives, requirements and application material of the International Standards, in their own right. The amendments generally involve little or no judgment in preparing them as there are no, or very limited, options for amending the wording.

    On November 15, 2019, the IAASB issued an Exposure Draft of the conforming amendments to the ISAs re the Revised IESBA Code.

    Given the limited nature of the amendments proposed and because the conforming amendments do not create any new obligations, the IAASB is proposing that the conforming amendments become effective approximately 90 days after the approval of the due process by the Public Interest Oversight Board. Such a timeframe is considered necessary to allow jurisdictions sufficient time for translation of the final text of the International Standards, for national adoption processes to occur, and for practitioners to update templates and associated internal materials. The IAASB considered whether a longer effective date would be in the public interest, but concluded that it would prolong the nonalignment between the IAASB International Standards and the revised IESBA Code, would delay the production of the IAASB Handbook, and that a longer effective date is unnecessary due to the limited nature of the conforming amendments. As part of the Exposure Draft process, the IAASB is seeking comments on the effective date of the conforming amendments.

    Once the amendments to the ISAs are finalized, the AASB will make similar changes to its CSAs.

     

    Other developments

    January 2020

    On January 17, 2020, the AASB issued an Exposure Draft proposing to adopt, with appropriate amendments, proposed revisions to International standards issued by the International Auditing and Assurance Standards Board (IAASB). Comments are requested by March 27, 2020.

    November 2019

    On November 15, 2019, the IAASB issued an Exposure Draft of the conforming amendments to the ISAs re the Revised IESBA Code. Comments are requested by January 10, 2020.

     

    Correction list for hyphenation

    These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.