Using the Work of an External Expert

The IESBA is committed to developing revisions to the Code to address the specific ethics and independence issues that might arise when experts work alongside professional accountants (PAs) in business (PAIBs) and in public practice (PAPPs), including in tax planning, technology-related activities and sustainability reporting and assurance. The objectives of the projects are to address:

• Ethics and independence provisions considerations for the use of an external expert in audit and assurance engagements;
• Ethics considerations regarding the involvement of an expert (both internal or external to the employing organization or firm) in the preparation and presentation of financial and non-financial information, including sustainability information, and other activities; and
• Ethics considerations regarding the involvement of an expert (both internal or external to the employing organization or firm) in the provision of other services (such as tax planning and technology-related activities). 

Although the scope of this project is broad, it will be progressed broadly in tandem with IESBA’s Sustainability Project given that the use of experts is critical in the preparation and presentation of sustainability information, including the assurance and audit of such information.

PROJECT CONTACT

Kam Leung

Joanna Bernard

TASK FORCE

Laurie Endsley, Chair, IESBA Vice Chair

Saadiya Adam, IESBA Member

Andrew Mintzer, IESBA Member

Luigi Nisoli, IESBA Member

IESBA December 2024 Meeting Highlights 

The IESBA considered an overview of the Task Force’s outreach activities since the release of the ED and discussed the preliminary key themes raised by respondents in their comment letters and by stakeholders during outreach, which included a series of meetings with investors and other users. The IESBA also considered the preliminary key themes from the comment letters, including the consistency of relevant definitions between the ED and the IAASB’s standards, the approach to evaluating competence, capabilities and objectivity for the external expert, as well as the additional objectivity requirements in relation to using the work of an external expert in an audit or other assurance (including sustainability assurance) engagement.

The IESBA will receive a full analysis of the respondents’ comments on the ED and the Task Force’s proposed revisions to the ED at its September 2024 meeting.