IESBA Revisions to Clarify the Applicability of Provisions in Part C of the Extant Code to Professional Accountants in Public Practice (Amendments to Harmonized Rule of Professional Conduct, Rule 204) [Completed]
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Effective date: |
Parts 1, 2 and 3 of the restructured Code of Conduct will be effective as of June 15, 2019; Part 4A relating to independence for audit and review engagements will be effective for audits and reviews of financial statements for periods beginning on or after June 15, 2019; and Part 4B relating to independence for assurance engagements with respect to subject matter covering periods of time will be effective for periods beginning on or after June 15, 2019; otherwise, it will be effective as of June 15, 2019. |
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Last updated: |
April 2018 |
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).