IESBA Proposed Quality Management-related Conforming Amendments to the Code (Potential Amendments to Harmonized Rule of Professional Conduct, Rule 204) [Completed]
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Effective date: |
The conforming amendments will be effective as of December 15, 2022. |
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Last updated: |
April 2022 |
Overview
Harmonized provincial Rule 204 sets out the Canadian profession’s standards that ensure Chartered Professional Accountants (CPAs) maintain auditor independence during engagements they undertake or participate in. It sets the standards and requirements CPAs must maintain as part of their professional conduct. Ethics standards adopted by Canadian provincial bodies are created in alignment with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA). Hence, changes to the IESBA Code of Ethics will need to be reflected in Rule 204.
On August 5, 2021, the IESBA released for public comment the Exposure Draft, "Proposed Quality Management-related Conforming Amendments to the Code". Comments are requested by October 5, 2021.
The proposals aim to align the Code with the International Auditing and Assurance Standards Board's (IAASB's) suite of quality management standards, especially ISQM 1 and ISQM 2, through conforming amendments so that the Code is consistent and interoperable with these IAASB standards. The review has encompassed the recent revisions to the Code pertaining to Role & Mindset and the Non-assurance Services and Fee-related provisions of the Code.
Review the press release and exposure draft on the IESBA's website.
Recent developments
April 2022
At its meeting on April 4-5, 2022, the Public Interest Oversight Board (PIOB) reviewed and approved the IESBA’s Quality Management - Related Conforming Amendments to the Code.
August 2021
On August 5, 2021, the IESBA released for public comment the Exposure Draft, "Proposed Quality Management-related Conforming Amendments to the Code". Comments are requested by October 5, 2021.
Related Discussions
Proposed Quality Management-related Conforming Amendments to the Code – IESBA
December 2021
At its meetings on November 30 – December 16, 2021, the IESBA unanimously approved conforming amendments to Code arising from the finalization of the IAASB’s Quality Management (QM) Standards. The QM conforming amendments were developed in close coordination with the IAASB within the established coordination framework of the two Boards. Subject to Public Interest Oversight Board (PIOB) approval, the final pronouncement is expected to be released by April 2022. The conforming amendments will be effective as of December 15, 2022.
June 2021
At its meetings on June 9-11, 14 & 25, 2021 the IESBA unanimously approved an Exposure Draft of proposed conforming amendments arising from the finalization of the IAASB’s Quality Management Standards. The Exposure Draft is expected to be issued by early August 2021 with a 60-day comment period. The proposals were developed in close coordination with the IAASB within the established coordination framework of the two Boards.