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.

At its meeting on December 4-8, 2017, the In­ter­na­tional Ethics Stan­dards Board for Ac­coun­tants (IESBA) approved its revisions to clarify the applicability of the provisions in Part C of the extant Code to professional accountants in public practice, developed under the Applicability project.

On April 9, 2018, the IESBA issued its restructured Code of Conduct [renamed the International Code of Ethics for Professional Accountants (including International Independence Standards)], which in­cludes the re­vi­sions relating to this project. Review the press release, the new Code and the related resource page on the IESBA's website.

Previously on January 24, 2017, the IESBA had is­sued an Ex­po­sure Draft, Pro­posed Re­vi­sions to Clar­ify the Ap­plic­a­bil­ity of Pro­vi­sions in Part C of the Ex­tant Code to Pro­fes­sional Ac­coun­tants in Pub­lic Prac­tice. The pro­pos­als aimed to clar­ify the ap­plic­a­bil­ity of the re­quire­ments and ap­pli­ca­tion ma­te­r­ial in ex­tant Part C of the Code of Ethics to pro­fes­sional ac­coun­tants in pub­lic prac­tice. For fur­ther de­tails see the press re­lease and the IESBA’s web­site.

Other de­vel­op­ments

April 2018

On April 9, 2018, the IESBA issued its restructured Code of Conduct (renamed the International Code of Ethics for Professional Accountants (including International Independence Standards)), which includes the revisions relating to this project.

January 2017

On January 24, 2017, the IESAB issued an Exposure Draft, Proposed Revisions to Clarify the Applicability of Provisions in Part C of the Extant Code to Professional Accountants in Public Practice. Com­ments are due by April 25, 2017.

Related Discussions

Re­vi­sions to Clar­ify the Ap­plic­a­bil­ity of Pro­vi­sions in Part C of the Code – IESBA

Dec 4, 2017

• At its meeting on December 4-8, 2017, the IESBA approved its revisions to clarify the applicability of the provisions in Part C of the extant Code to professional accountants in public practice, developed under the Applicability project. Subject to the Public Interest Oversight Board (PIOB) approval, the restructured Code, which includes these revisions, is expected to be released by early April 2018.

Revisions to Clarify the Applicability of Provisions in Part C of the Code – IESBA

Sept 19, 2017

• At its meeting on September 19-22, 2017, the IESBA further deliberated significant comments received on the Exposure Draft and related Task Force responses. The IESBA generally supported the Task Force’s proposed revisions which incorporated the feedback received from IESBA members during its June 2017 meeting. With respect to Applicability, topics discussed included matters relating to the project scope, and the nature of the examples to illustrate how the Applicability provisions in Part 2, Professional Accountants in Business, of the restructured Code would operate in the context of the work of professional accountants in public practice. At the December 2017 meeting, the IESBA will consider a final draft of the applicability provisions, with a view to approving them for inclusion in the restructured Code. The IESBA also considered revisions to the proposed restructured text of the provisions in extant Part C, Professional Accountants in Business, included in the March 2016 close-off document, in light of the comments received from respondents to Structure ED-2 and Safeguards ED-2. The IESBA was generally supportive of the Task Force’s proposals, subject to any further structure- or safeguard-related refinements. At its December 2017 meeting, the IESBA will consider a final draft of the restructured text, with a view to approval for inclusion in the restructured Code.

Re­vi­sions to Clar­ify the Ap­plic­a­bil­ity of Pro­vi­sions in Part C of the Code – IESBA

Dec 12, 2016

• At its meeting on December 12-15, 2016, the IESBA approved for exposure revised provisions clarifying how extant Part C applies to Professional Accountants in Public Practice (Applicability ED).