IESBA proposes significant revisions to international independence standards and guidance on the objectivity of an engagement quality reviewer
The International Ethics Standards Board for Accountants (IESBA) released three exposure drafts (ED) for public comment. These propose significant revisions to the provisions of the IESBA Code of Ethics.
1- ED on Non-Assurance Services (NAS): The proposals introduce several new requirements that expressly prohibit firms and network firms from providing certain types of NAS to their audit clients. There are also new requirements to strengthen firm communication with those charged with governance Read more
2- ED on Fees: The proposals articulate and address the issue of threats to independence created when fees are negotiated with and paid by the audit or assurance client. The revision also aims to enhance transparency with regard to fee-related information for PIE audit clients Read more
3- ED on Engagement Quality Reviewers: The IESBA is proposing new application material to explain the different types of threat to objectivity that might be created in circumstances where an individual is being considered for appointment as an Engagement Quality Reviewer (EQR) for a particular engagement Read more
IFAC’s points of view on achieving high-quality audits
The International Federation of Accountants (IFAC) published its official position on achieving high quality audits. The “right” process, people, governance, regulation and measurement are described in this analysis. IFAC calls all participants in the audit and assurance ecosystem to action for improving audit quality. Read more
IFIAR emphasises the importance of continued improvement in audit quality
The International Forum of Independent Audit Regulators (IFIAR), a global membership organisation of 55 independent audit regulators, announced the results of an initiative begun in 2015 to measure the frequency of inspection findings.
The results indicate that there has been a 21% reduction between years 2015 and 2019 in the frequency of audits inspected with findings.
IFIAR conducts annual surveys about the findings from its members’ individual inspections of audit firms. They plan to publish a comprehensive report on the 2019 survey in early 2020 Read more