Proposed Changes to Certain Provisions of the Code Addressing the Long Association of Personnel with an Audit or Assurance Client
IESBA
| Exposure Drafts and Consultation Papers
English
Comments due by:
The proposals in the Exposure Draft respond to stakeholder concern about the appearance of independence and the need to ensure that the threats created by the long association of audit firm personnel with an audit client are appropriately addressed on all audit engagements.
The proposals aim to strengthen the independence provisions in the Code of Ethics for Professional Accountants (the Code). Among the proposed changes are:
- Strengthened general provisions applicable to all audit engagements regarding the threats created by long association;
- With respect to partner rotation, an increase in the mandatory “cooling-off” period, from two to five years, for the engagement partner on the audit of a public interest entity;
- Strengthened restrictions on the type of activities that can be undertaken with respect to the audit client and audit engagement by any former key audit partner during the cooling-off period; and
- A requirement to obtain the concurrence of those charged with governance regarding the application of certain exceptions to the rotation requirements.
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Submitted Comment Letters
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CPA Australia (CPA Au) (54.4 KB)(Australia)
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Moscow Audit Chamber (MAC) (35.44 KB)(Russian Federation)
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National Association of State Boards of Accountancy (NASBA) (292.34 KB)(United States of America)
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Keith Reilly (27.58 KB)(Australia)
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American Accounting Association, Standards Committee of the Auditing Section (39.84 KB)(United States of America)
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Felikar and Associates (FKA) (51.26 KB)(Kenya)
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The Institute of Chartered Accountants of Pakistan - ICAP (503.88 KB)(Pakistan)
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Chartered Accountants Ireland (498.01 KB)(Ireland)
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Malta Institute of Accountants (209.68 KB)(Malta)
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Grant Thornton International (330.38 KB)()
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The Malaysian Institute of Certified Public Accountants (MICPA) (143.08 KB)(Malaysia)
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BDO Global Coordination B.V. (BDO) (59.03 KB)(United States of America)
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Dianne Azoor Hughes (170.65 KB)(Australia)
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Institut der Wirtschaftsprüfer e.V. (IDW) (115.71 KB)(Germany)
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Accounting Professional & Ethical Standards Board Limited-Australia (APESB) (158.33 KB)(Australia)
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Institute of Directors (IOD) (469.75 KB)(New Zealand)
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IFAC Small and Medium Practices (SMP) Committee (93.06 KB)()
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Altaf Noor Ali Chartered Accountants (357.14 KB)(Pakistan)
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Ernst & Young LLP (309.2 KB)(Europe & Central Asia)
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Hong Kong Institute of Certified Public Accountants (HKICPA) (73.17 KB)(Hong Kong, Special Administrative Region of China)
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Institute of Singapore Chartered Accountants (525.78 KB)(Singapore)
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Compagnie Nationale des Commissaires aux Comptes (CNCC) (291.3 KB)(France)
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ASSOCIATION OF NATIONAL ACCOUNTANTS OF NIGERIA (ANAN) (285.52 KB)()
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The Netherlands Institute of Chartered Accountants (NBA) (87.98 KB)(Netherlands)
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International Organization of Securities Commissions (IOSCO) (381.22 KB)(Spain)
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Denise Silva Ferreira Juvenal (87.79 KB)(Brazil)
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The Institute of Chartered Accountants of Sri Lanka (29.9 KB)(Sri Lanka)