IESBA Proposed Phase 2 Revisions Pertaining to Safeguards in the Code and Related Conforming Amendments [ED]
Comment period ends: |
Comments on the Exposure Draft are due by April 25, 2017 |
Last updated: |
September 2017 |
Overview
On January 24, 2017, the International Ethics Standards Board for Accountants (IESBA) issued an Exposure Draft, Proposed Revisions Pertaining to Safeguards in the Code—Phase 2 and Related Conforming Amendments.
The proposals address safeguards-related provisions in the independence sections of the Code of Ethics for Professional Accountants pertaining to non-assurance services provided to audit and other assurance clients. The document also explains the rationale for the revisions to the non-assurance services section of the extant Code (Proposed Section 600, Provision of Non-assurance Services to an Audit Client and Section 950, Provision of Non-assurance Services to an Assurance Client);
For further details see the press release and on the IESBA’s website.
Other developments
January 2017
On January 24, 2017, the IESAB issued an Exposure Draft, Proposed Revisions Pertaining to Safeguards in the Code—Phase 2 and Related Conforming Amendments. Comments are due by April 25, 2017.
Related Discussions
Phase 2 Revisions Pertaining to Safeguards in the Code - IESBA
Sept 19, 2017
- At its meeting on September 19-22, 2017, the IESBA further deliberated significant comments received on Safeguards ED-2, and related Task Force responses. The IESBA also was briefed on the outcome of the Task Force’s July 2017 teleconferences with representatives of regulatory stakeholders who responded to Safeguards ED-2, and the IFAC Small and Medium Practices (SMP) Committee. As part of its deliberations, the IESBA considered a first draft of revisions to proposed Section 600, Provision of Non-assurance Services to an Audit Client, and conforming and consistency changes to safeguards-related provisions in other sections of the proposed restructured Code. Among other matters, the IESBA discussed the adequacy and appropriateness of the provisions for evaluating and addressing advocacy threats; and whether additional guidance is needed in the Code to explain (a) the meaning of the term “appropriate professional” used in examples of actions that might be safeguards; and (b) how professional accountants and firms should determine whether an action is effective in reducing a threat to an acceptable level, and therefore qualify as a safeguard. The IESBA broadly supported the direction of the Task Force’s proposals. At its December 2017 meeting, the IESBA will consider a final draft of the safeguards provisions and related conforming amendments, with a view to approving them for inclusion in the restructured Code.
Dec 12, 2016
- At its meeting on December 12-15, 2016, the IESBA approved for exposure Phase 2 of its Safeguards project, which includes proposed revisions to the non-assurance services sections of the extant Code (i.e., proposed restructured Section 600, Provision of Non-assurance Services to an Audit Client and restructured Section 950, Provision of Non-assurance Services to an Assurance Client). The IESBA also approved proposed conforming amendments to other areas of the Code arising from the Safeguards project.