IESBA Proposed Quality Management-related Conforming Amendments to the Code (Potential Amendments to Harmonized Rule of Professional Conduct, Rule 204) [ED]

The com­ment pe­riod ends on October 5, 2021

 Next steps: 

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.

 Last up­dated: 

December 2021

 

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

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.

 

 

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