Comments on the proposals in the Exposure Draft (ED), Responding to Non-compliance with Laws & Regulations, are requested by September 4, 2015. The proposals set out a new framework to guide auditors and other professional accountants in public practice and in business in how to respond when they encounter acts, or suspected acts, of non-compliance with laws and regulations in the course of their work.

All stakeholders are invited to comment, particularly preparers, those charged with governance, and investors. At a Glance: Responding to Non-compliance with Laws & Regulations has been prepared by staff to outline the key principles and objectives of the revised proposals. The IESBA will consider the significant comments received on the Exposure Draft at its December 2015 meeting.

The IESBA considered and broadly supported the general direction presented in first drafts of selected sections of the restructured Code of Ethics for Professional Accountants (the Code), which included suggestions from a plain English editor. The development of these first drafts follows the IESBA’s review of comments received on the Consultation Paper, Improving the Structure of the Code of Ethics for Professional Accountants, which closed earlier this year. The IESBA also discussed, among other matters, the following:

• ambiguity in certain pieces of guidance as to whether they require specific actions of the professional accountant (“half requirements”);
• the distinction between the Glossary and Terms Used;
• the extent of cross referencing needed;
• the overall flow and readability of the restructured Code;
• a draft Preface;
• the need for a “How to Use the Code” section; and
• terminology and numbering matters.

The IESBA will consider a revised draft of these sections as well as additional ones at its September 2015 meeting.

The IESBA further considered two issues arising from significant comments received in response to the Exposure Draft, Proposed Changes to Certain Provisions of the Code Addressing the Long Association of Personnel with an Audit or Assurance Client, namely:

• whether the existence of different regulatory safeguards, or a package of safeguards, set at the jurisdictional level might provide an alternative to elements of partner rotation requirements for audits of public interest entities (PIEs) in the Code; and
• the adjustment to the cooling-off period for the engagement quality control reviewer on PIE audits, in the light of feedback received from the IESBA Consultative Advisory Group (CAG).

In relation to the first issue, the IESBA supported the Task Force’s proposal for an alternative approach to the Code’s requirements in these particular circumstances. In relation to the second issue, the IESBA will present a new way forward to the IESBA CAG at the September CAG meeting.

The IESBA will consider a revised draft of the proposed provisions with a view to approval at its December 2015 meeting.

The IESBA progressed its consideration of the clarity, appropriateness, and effectiveness of safeguards pertaining to the application of the conceptual framework in the Code. As raised by the Safeguards Task Force, the IESBA considered issues and proposals around:

• clarifications to the conceptual framework;
• the meaning of “a reasonable and informed third party”;
• the description of, and types of, safeguards;
• the involvement of those charged with governance as a safeguard, in relation to the provision of non-assurance services;
• documentation requirements; and
• considerations based on the unique issues faced by small- and medium-sized practices.

The IESBA will consider a first draft of the proposed changes to the Code at its September 2015 meeting.

The IESBA considered significant comments received on its Exposure Draft (ED), Proposed Changes to Part C of the Code Addressing Presentation of Information and Pressure to Breach the Fundamental Principles. The meeting focused on the comments regarding proposed revised Section 320, “Presentation of Information” and included discussion of the following matters:

• the meaning of the concept of “fair and honest” and its relationship to the fundamental principles;
• the appropriateness of certain examples of misuse of discretion in preparing or presenting financial information;
• the nature and extent of guidance to be provided regarding the purpose, context and audience when information is prepared in the absence of a reporting framework;
• the nature and extent of guidance to be provided regarding “reasonable steps” the professional accountant in business (PAIB) should take when relying on work performed by others;
• the need to differentiate the guidance between “senior PAIBs” and other PAIBs; and
• the approach towards disassociation from misleading information for different levels of PAIBs.

The IESBA will next consider the ED comments regarding proposed Section 370, “Pressure to Breach the Fundamental Principles” at its September 2015 meeting, and a revised draft of Section 320 at its December 2015 meeting.

The IESBA supported a recommendation from its Planning Committee to establish a working group to initiate fact finding on fee-related issues in various jurisdictions. This development responds to a call from the Public Interest Oversight Board (PIOB) for the IESBA to revisit issues on auditor independence and non-assurance services from a broader perspective, including consideration of fee-related issues.

As a related initiative, the IESBA also agreed to commission a staff publication to raise auditors’ awareness of fee-related issues and relevant provisions in the Code. An update on the development of the publication will be presented to the IESBA at its next meeting. 

Meetings of the Ethics Board and the Ethics Board’s CAG are open to the public. The next IESBA CAG meeting will be held in New York, USA, on September 14, 2015. The next Ethics Board meeting will be held in New York, USA, on September 15–16, 2015.

For more information and to register to attend an Ethics Board or Ethics Board CAG meeting as an observer, visit Ethics Board Meetings  and Ethics Board CAG Meetings, respectively.

The 2015 edition of the Handbook of the Code of Ethics for Professional Accountants is now available. Print copies can be purchased for USD $65 with discounts available for educators, students, and purchasers from WTO developing countries.

The 2015 edition of the handbook includes the revisions addressing certain non-assurance services provisions for audit clients in Section 290, and assurance clients in Section 291. The changes will be effective on April 15, 2016, except for the changes to Section 290, which will be effective for audits of financial statements for periods commencing on or after April 15, 2016. Early adoption is permitted. See “Changes” section in Handbook for details.

For information on recent developments and pending changes to the Code issued subsequent to May 31, 2015, visit the IESBA’s website, in particular, Exposure Drafts and Standards & Pronouncements.

To access the web-based IESBA Handbook for personal use or purchase print copies, see Handbook of the Code of Ethics for Professional Accountants.  

The IESBA is recruiting at the Deputy Director and Senior Technical Manager levels for its staff team based in New York. For complete job descriptions and required skills and experience for these roles, see Working at IFAC. Qualified candidates should send their resume to jobs@ifac.org.

Last year, IFAC^® launched the Global Knowledge Gateway™, a digital hub for the global accountancy profession. The Gateway serves professional and aspiring accountants in all sectors by providing streamlined access to relevant resources, news, discussions, and thought leadership in ten different areas, including ethics. Resources in this area, designed to serve both accountants in business and in practice, include surveys and reports on business ethics issues, as well as practical guidance on implementing the IESBA Code and other codes of conduct.

We invite you to explore, contribute your views and recommendations, suggest new resources, and subscribe to The Latest to receive customized twice-monthly updates on new ethics and other content added to the Gateway. Register and subscribe to take full advantage of these features. 

Log in and visit My Subscriptions to update your preferences. You may also be interested in subscribing to The Latest from the Global Knowledge Gateway (see above), as well as news and press releases from the IAASB, IAESB, IPSASB, and IFAC Committees. You can unsubscribe or update your preferences at any time. 

By registering on the IFAC website, you can also:

• submit comments on the IESBA’s Exposure Drafts and Consultation Papers;
• submit translations and permissions requests or inquiries; and
• interact on the Global Knowledge Gateway and MOSAICwebsites, including:
  • commenting on discussions and viewpoints;
  • recommending discussions and resources; and
  • suggesting content.

En enero de 2015, el Consejo de Normas Internacionales de Auditoría y Aseguramiento^® (IAASB^®) publicó sus Estándares nuevos y revisados para los informes de auditoría. Como indicó el presidente del IAASB, el profesor Arnold Schilder, los estándares nuevos y revisados fortalecerán la auditoría conforme los auditores cambien considerablemente su conducta y la manera en que comunican su trabajo.

La mejora más significativa corresponde al nuevo requerimiento para los auditores de estados financieros de entidades cotizadas, sobre la comunicación de los "Principales Asuntos de Auditoría" —aquellos asuntos de mayor importancia a juicio del auditor para la auditoría del periodo corriente, con una explicación sobre el método utilizado en la auditoría. El IAASB se ha enfocado igualmente en mejorar la atención y comunicación del auditor frente a asuntos relacionados con el negocio en marcha en el informe del auditor. 

En conjunto con la publicación de estos estándares, el IAASB creó un Grupo de Implementación de Estándares para los Informes de Auditoría con el fin de crear consciencia y promover la implementación efectiva de los estándares. Hasta la fecha, el Grupo de Implementación ha trabajado en el desarrollo de una serie de Instrumentos para los Informes de Auditoría, los cuales figuran en el sitio web “The New Auditor’s Report” (Nuevo Informe del Auditor), actualmente compuesto por una Ficha Técnica, una publicación titulada At a Glance (incluido un informe ilustrativo del auditor) y una presentación de diapositivas. Se han desarrollado igualmente publicaciones sobre temas específicos: Principales Asuntos de Auditoría y Negocio en Marcha, siendo la publicación más reciente Ejemplos Ilustrados de los Principales Asuntos de Auditoría.

En diciembre de 2014, el IAASB publicó su Estrategia para 2015–2019: Cumplimiento con Nuestro Mandato a Favor del Interés Público en un Mundo Cambiante y su Plan de Trabajo para 2015–2016: Mejorando la Calidad de la Auditoría y Preparación para el Futuro. Desarrolladas luego de un exhaustivo proceso de consulta pública, estas publicaciones refuerzan el compromiso del IAASB en el fortalecimiento de la confianza pública frente a la información financiera y en la contribución a la relevancia de la auditoría de estados financieros, manteniéndose al día en desarrollos emergentes. Su objetivo es garantizar un trabajo enfocado en los principales asuntos de interés público para su amplia gama de grupos de interés.

Se ha comenzado a trabajar sobre control de calidad, auditorías de grupo y consideraciones especiales relativas a los instrumentos financieros, los cuales fueron debatidos en la última reunión del IAASB.

La última junta del IAASB se llevó a cabo en Bruselas en marzo de 2015. Los puntos destacados de la junta y un podcast resumen de los principales resultados de la reunión se encuentran disponibles en la página de Juntas del IAASB.

En esta reunión, el IAASB aprobó unánimemente los cambios a sus Normas Internacionales de Auditoría™ (NIA™) para abarcar las revelaciones en las auditorías de los estados financieros. Las NIA revisadas están sujetas a confirmación del Consejo de Supervisión del Interés Público (PIOB) sobre el debido proceso, y su publicación está prevista para julio de 2015. Una publicación del equipo sobre cómo las NIA abordan las revelaciones será emitida junto con los cambios a las mismas.

El IAASB aceptó igualmente que es necesario realizar cambios a ciertos de sus estándares como resultado del proyecto del Consejo de Estándares Internacionales de Ética para Contadores: Incumplimiento de leyes y regulaciones (NOCLAR por sus siglas en inglés).

El IAASB ha continuado su programa de amplio alcance, contemplado en su Estrategia. Además ha elaborado una lista detallada de sus actividades de alcance. Entre sus más recientes actividades destacadas figuran:

• Reuniones con el Grupo de Monitoreo al igual que sus organizaciones miembros, por ejemplo: 
• Mayor diálogo con el Foro Internacional de Reguladores de Auditoría Independientes , su Grupo de Trabajo de Coordinación de Normas, y la Organización Internacional de Comisiones de Valores sobre los informes del auditor y los nuevos proyectos.
• Inicio de conversaciones con supervisores internacionales y reguladores prudenciales en las industrias bancaria y de seguros para comunicar el proyecto sobre consideraciones especiales de auditoría relativas a instituciones financieras.
• Diálogo continuo con el PIOB, incluida la participación en una reunión conjunta con el PIOB, los directores del IAASB, el IESBA, el Consejo de Normas Internacionales de Educación Contable y sus Grupos Consultivos Asesores (CAG).
• Reunión semestral con el CAG del IAASB para recibir aportes sobre los temas incluidos en el plan del IAASB desde una perspectiva técnica y estratégica.
• Alcance específico al Reino Unido, incluyendo reuniones con inversores, reguladores, firmas contables, organizaciones profesionales de contabilidad y otros líderes de opinión.
• Junto con la Federación de Expertos Contables Europeos (FEE), alcance a los miembros del comité de auditoría en Europa para debatir sobre los efectos de las mejoras resultantes del proyecto, correspondientes a los informes del auditor frente a los comités de auditoría y los asuntos relacionados con la calidad de la auditoría en general.
• Contacto con el Consejo de Normas Internacionales de Contabilidad (IASB) para considerar dificultades que surjan a partir de los nuevos estándares de información financiera y las posibles implicaciones de estos cambios en los estándares de auditoría.
• Comunicación continúa con las firmas contables, mediante reuniones con el Comité Global de Políticas Públicas (GPPC), el Foro de Firmas y el Comité de Firmas Pequeñas y Medianas sobre asuntos estratégicos y técnicos. 

El 30 de marzo de 2015 el IAASB, junto con el Instituto de Contadores Certificados de Escocia (ICAS) y la Asociación Internacional para la Educación e Investigación en Contabilidad (IAAER), anunció un nuevo llamado global a la investigación con el fin de reunir evidencia académica independiente para alimentar su proceso de emisión de normas. La fecha límite para el envío de las propuestas es octubre 1 de 2015. 

El IAASB celebra que 105 territorios han adoptado o están comprometidos con la adopción de las NIA clarificadas. Cabe resaltar que el presidente del IAASB, el profesor Arnold Schilder, fue el principal conferencista en la ceremonia del 4 de marzo de 2015 en Roma, Italia, donde oficializó la adopción de las NIA clarificadas en esta nación. Encontrará disponible mayor información en la última edición del Consiglio Nazionale dei Dottori Commercialisti e Degli Esperti Contabili journal Press.

El 1 de abril de 2015, Mathew Waldron, un defensor del inversionista, y el actual Director del Grupo de Políticas de Información Financiera del Instituto CFA, asumió la dirección del CAG del IAASB —sucede a la profesora Linda de Beer, quien ocupaba la dirección del CAG del IAASB desde septiembre de 2010. El señor Waldron ha sido el representante del Instituto CFA para el CAG del IAASB desde 2008, además de haber trabajado para KPMG y PwC, y la Corporación Federal de Préstamos Hipotecarios.

La próxima junta del Consejo se llevará a cabo en Nueva York, Estados Unidos, del 15 al 19 de junio de 2015. El plan y el material de la reunión serán publicados con 3 o 4 semanas de antelación en la página de las Reuniones del IAASB. Los miembros del público pueden registrarse para observar las reuniones y el proceso de registro cierra una semana antes del primer día de la reunión.

La próxima reunión del CAG del IAASB está programada para los días 15 y 16 de septiembre de 2015, en Nueva York, EE.UU.

Updates to the two International Federation of Accountants^® (IFAC^®)  Intellectual Property (IP) Policy Statements, Policy for Reproducing, or Translating and Reproducing, Publications of the International Federation of Accountants, and the Policy for Translating and Reproducing Standards Published by the International Federation of Accountants were recently posted on the IFAC website.

There have been no changes in policy. A table of contents has been added and, to reflect current practice, the updated policy statements include new sections on:

• Trademarks, service marks, and logos; 
• Adoption, especially the implications of adoption for use of copyrighted material and trademarks; and
• IFAC’s new Online Permission Request and Inquiry system (OPRI). (See below.)

The reproduction policy is mandatory in all circumstances when a party is interested in reproducing or translating any IFAC publication (except for translation of final standards). Translation of final standards is covered by the translations policy which outlines the requirements for parties that wish to translate and reproduce final standards issued by independent standard-setting boards supported by IFAC.

The IberAm project is beginning to produce results, as illustrated by several recent examples. The Executive Committee recently approved close to a dozen final translations, including International Framework: Good Governance in the Public Sector, and Competent and Versatile: How Professional Accountants in Business Drive Sustainable Success.

In addition, the Executive Committee unanimously agreed that IberAm project translations (including Spanish-language handbooks of international standards) will be published following the same process IFAC uses for its English-language publications–in pdf format on the IFAC website, at no charge for individual, noncommercial use. This is a significant development for IFAC’s adoption and implementation objectives and we are grateful to the IberAm partners for their significant investments in producing these quality translations and for the important contribution represented by this decision.

Please note: any organization wishing to reproduce or disseminate the materials in any way, whether for purposes of internal use, adoption, commercial reproduction, training, etc., must have a written agreement with IFAC. (See “Online Permission Request & Inquiry System” below.)

Although IFAC expects to have electronic versions available on its website soon, we would like to gauge interest in print copies of the most recent Spanish-language translation of the International Auditing and Assurance Standards Board^® (IAASB^®)’s Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements Volumes I and 2 (2013 Edition).

Please send expressions of interest to permissions@ifac.org by June 30, 2015. Based on expressions of interest received, IFAC will consider the size of the possible print run and the related selling price.

Following a meeting at IFAC’s New York offices in March, several French translating bodies are progressing their efforts to produce a cooperation framework for French-language translations of IFAC’s publications, including international standards. Representatives of IFAC member bodies from France, Belgium, and Canada, and a representative of the Fédération International des Experts-comptables Francophones (FIDEF) attended. FIDEF represents professional accountancy organizations from 36 French-speaking countries and supports the proposed collaboration as an important initiative to further facilitate effective global adoption and implementation of international standards. Participants agreed on an objective of signing the framework agreement within the year.

IFAC is looking for qualified individuals or organizations to regularly translate select content from its Global Knowledge Gateway. Launched last year, the Global Knowledge Gateway now includes nearly 200 original articles and brings together thousands of staff-selected resources and news items from over 450 sources, including many IFAC member organizations and firms.

The Gateway aims to add value to IFAC membership by serving the 2.8 million professional accountants that belong to IFAC member bodies. It attracts thousands of visitors each month; IFAC hopes all member bodies will actively, consistently engage and make the Gateway an invaluable tool and global community for their members.

Send queries regarding translation interest to permissions@ifac.org.

IFAC’s recently introduced “IFAC Translator Forum” continues to grow. The Forum, a subgroup of IFAC’s LinkedIn group, has more than 100 members and is targeted to IFAC-designated translating body contacts and related stakeholders as a way to share best practices, collaborate, submit questions, stimulate discussion, and offer responses on topics related to the translation of standards, handbooks, guides, and tools.

Join the IFAC Translator Forum on LinkedIn.

IFAC has identified numerous examples of governmental entities posting the International Public Sector Accounting Standards Board’s^® International Public Sector Accounting Standards™ (IPSASs™) (in English or translated versions) on their websites or including extracts of IPSASs in their relevant national standards, without having an appropriate agreement in place with IFAC for use of this copyrighted content.

Please help us raise awareness by informing the relevant governmental entities in your jurisdiction about the need for an appropriate agreement with IFAC for IPSAS adoption or convergence. You may direct them to our FAQs  or ask them to contact us at permissions@IFAC.org for further information. An agreement is also required for use of the other international standards published by IFAC (e.g., pronouncements of the IAASB, the International Ethics Standards Board for Accountants^®, and the International Accounting Education Standards Board™.

IFAC encourages stakeholders to utilize the new Online Permission Request and Inquiry  (OPRI) system, which is designed to streamline the process for submitting requests for reproductions, translations, and information. OPRI allows registered users to submit inquiries or requests for reproduction or translation, as well as manage all requests in one place, duplicate existing requests to save time when placing new ones, and view the status of pending requests.

To submit a request via OPRI, please register on our website and then visit the Intellectual Property, Translations and Permissions page. We recommend reading the Frequently Asked Questions (FAQs) and relevant policy statements prior to submitting requests. 

IFAC appreciates the efforts of its designated translating bodies which have recently finalized the following translations:

Arabic (IASCA): 2014 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements and 2014 Handbook of the Code of Ethics for Professional Accountants

Bulgarian (ICPAB): 2014 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements and 2014 Handbook of the Code of Ethics for Professional Accountants

Danish (FSR): selected updates 2014 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements

Estonian (MoF): Guide to Review Engagements

Finnish (Suomen Tilintarkastajat ry):  2014 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements and 2014 Handbook of the Code of Ethics for Professional Accountants

In French (FIDEF): Professional Accountancy Organization Global Development Report, MOSAIC: The Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration

Greek (ELTE): International Standard on Assurance Engagement (ISAE) 3420, Assurance Engagements to Report on the Compilation of Pro Forma Financial Information Included in a Prospectus

Hungarian (CHA): A Framework For Audit Quality – Key Elements That Create An Environment For Audit Quality

Korean (KICPA): International Education Standard (IES) 8, Professional Competence for Engagement Partners Responsible for Audits of Financial Statements (Revised)

Polish (KIBR): Change to the Definition of “Those Charged with Governance” in, and Related Changes to, the Code of Ethics for Professional Accountants

Spanish (FACPCE): International Framework: Good Governance in the Public Sector, Executive Summary

Spanish (FACPCE): International Framework: Good Governance in the Public Sector

Spanish (FACPCE): Competent and Versatile: How Professional Accountants in Business Drive Sustainable Success

Spanish (FACPCE): Competent and Versatile: How Professional Accountants in Business Drive Sustainable Success BROCHURE

Spanish (IFAC): 2014 IFAC Global SMP Survey: Executive Summary

Spanish (ICJCE):

IESBA Staff Q&A - Implementing the Code of Ethics—Part I

IESBA Staff Q&A - Implementing the Code of Ethics—Part II

Staff Q&A - Applying ISQC 1 Proportionately with the Nature and Size of a Firm

Staff Q&A - Applying ISAs Proportionately with the Size and Complexity of an Entity  

Spanish (IMCP): Proposed International Standards on Auditing (ISAs), ISA 800 (Revised) and ISA 805 (Revised)

Spanish (INCP): Various IFAC newsletters, press releases

Spanish (UoZ): Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities

Spanish (UoZ): 2014 Handbook of International Public Sector Accounting Pronouncements

Spanish (INCP): Proposed IFAC Member Compliance Program Strategy, 2016-2018

The 2015 edition of the Handbook of the Code of Ethics for Professional Accountants is now available. Print copies can be purchased for USD $65 with discounts available for educators, students, and purchasers from WTO developing countries.

The 2015 edition of the handbook includes the revisions addressing certain non-assurance services for audit clients in Section 290, and assurance clients in Section 291. The changes will be effective on April 15, 2016, except for the changes to Section 290, which will be effective for audits of financial statements for periods commencing on or after April 15, 2016. Early adoption is permitted. See “Changes” section in Handbook for details.

For information on recent developments and pending changes to the Code issued subsequent to May 31, 2015, visit the IESBA’s website, in particular, Exposure Drafts and Standards & Pronouncements.

To access the web-based IESBA Handbook for personal use or purchase print copies, see Handbook of the Code of Ethics for Professional Accountants.

The IESBA unanimously approved for exposure revised proposals regarding professional accountants’ response to identified or suspected acts of non-compliance with laws and regulations. The revised proposals set out a new framework to guide auditors, professional accountants in public practice, and professional accountants in business (PAIBs) in deciding how best to act in the public interest in such situations.

Comments on the revised proposals in the Exposure Draft are requested by September 4, 2015. All stakeholders are invited to comment, particularly preparers, those charged with governance, and investors. An At-a-Glance document has been prepared by staff to outline the key principles and objectives of the revised proposals. The IESBA will consider the comments received on the Exposure Draft at its December 2015 meeting.

The IESBA considered comments received on the Consultation Paper, Improving the Structure of the Code of Ethics for Professional Accountants, and related Task Force recommendations. The IESBA broadly agreed on an approach to restructuring the Code, subject to reconsideration of the titles of certain components within the new structure. The IESBA also discussed, among other matters: how to give appropriate prominence to compliance with the fundamental principles and application of the conceptual framework; rebranding of the Code as standards; distinguishing requirements from guidance; the risk of unintended changes in meaning due to restructuring; and numbering conventions. The IESBA agreed to seek early engagement with stakeholders as the restructuring work progresses.

The IESBA will consider a first draft of a selection of restructured sections of the Code at its June-July 2015 meeting.

To enhance accessibility and navigability, the Code is now available in a new web-based format. Enhancements to the web-based Code are being considered in tandem with the restructuring.

The IESBA completed its consideration of comments received on the Exposure Draft, Proposed Changes to Certain Provisions of the Code Addressing the Long Association of Personnel with an Audit or Assurance Client. Topics discussed included: restrictions on the activities of key audit partners with respect to the audited entity during the cooling-off period; obtaining the concurrence of those charged with governance with respect to the application of certain exceptions to rotation requirements; and enhancements to the general provisions regarding the threats created by long association.

The IESBA also discussed issues concerning audits of public interest entities (PIEs):

• Whether the existence of different regulatory safeguards, or a package of safeguards, set at the jurisdictional level might provide an alternative to elements in the Code regarding rotation requirements for PIE audits; and
• The approach to the cooling-off period for the engagement quality control reviewer on PIE audits.

The IESBA will continue its deliberation of the issues at its June-July 2015 meeting, taking into account further input to be received from the IESBA Consultative Advisory Group (CAG).

The IESBA considered preliminary issues in relation to the clarity, appropriateness, and effectiveness of the safeguards pertaining to the application of the conceptual framework in the Code, including:

• the approach to describing the meaning of a safeguard;
• characteristics of a reasonable and informed third party;
• the meaning of materiality in evaluating the significance of threats;
• evaluating the effectiveness of safeguards; and
• the nature and extent of involvement of those charged with governance regarding the provision of non-assurance services by the auditor.

In addition, the IESBA considered the approach to coordination between this project and the Structure of the Code project. The IESBA agreed that any changes to the Code proposed as a result of the Safeguards project should be issued for exposure in the format and under the drafting conventions of the restructured Code.

The IESBA will continue its deliberation of the issues at its June-July 2015 meeting.

The IESBA discussed a number of matters regarding Phase II of its project to enhance Part C of the Code, which deals with PAIBs. The Task Force presented its preliminary analysis of Section 350 of the Code, which identified where potential improvements could be made to provide more robust and comprehensive guidance to PAIBs on the topic of inducements.

At its June-July 2015 meeting, the IESBA will consider comments received on the Exposure Draft of Phase I of the project, addressing PAIBs’ responsibilities with respect to the presentation of information, and pressure to breach the fundamental principles. The IESBA will continue its deliberation of the issues on Phase II of the project in due course.

Following the Public Interest Oversight Board’s approval that due process had been followed, the IESBA released in April 2015 the final pronouncement, Changes to the Code Addressing Certain Non-Assurance Services Provisions for Audit and Assurance Clients. The changes strengthen the independence provisions in the Code by, in particular, no longer permitting auditors to provide certain prohibited non-assurance services to PIE audit clients in emergency or other unusual situations, and ensuring that they do not assume management responsibility when providing non-assurance services to audit clients.

In addition, the revised provisions include:

• New and clarified guidance regarding what constitutes management responsibility; and
• Clarified guidance regarding the concept of “routine or mechanical” services relating to the preparation of accounting records and financial statements for audit clients that are not PIEs.

See the staff-prepared Basis for Conclusions. The revised pronouncement is included in the 2015 IESBA Handbook; see above. 

Last year, the International Federation of Accountants^® (IFAC)^® launched the Global Knowledge Gateway™, a digital hub for the global accountancy profession. The Gateway serves professional and aspiring accountants in all sectors by providing streamlined access to relevant resources, news, discussions, and thought leadership in ten different areas, including ethics. Resources in this area, designed to serve both accountants in business and in practice, include surveys and reports on business ethics issues, as well as practical guidance on implementing the IESBA Code and other codes of conduct.

We invite you to explore, contribute your views and recommendations, suggest new resources, and subscribe to The Latest to receive customized twice-monthly updates on new ethics and other content added to the Gateway. Register and subscribe to take full advantage of these features. 

Meetings of the Ethics Board and the Ethics Board’s CAG are open to the public. The next Ethics Board meeting will be held in New York, USA, on June 29–July 1, 2015. The next physical IESBA CAG meeting will be held in New York, USA, on September 14, 2015.

For more information and to register to attend an Ethics Board or Ethics Board CAG meeting as an observer, visit Ethics Board Meetings  and Ethics Board CAG Meetings, respectively.

The IESBA is recruiting at the Deputy Director and Senior Technical Manager levels for its staff team based in New York. For complete job descriptions and required skills and experience for these roles, see Working at IFAC. Qualified candidates should send their resume to jobs@ifac.org.

Register or log in to the IFAC website and visit My Subscriptions to update your preferences. You may also be interested in subscribing to The Latest from the Global Knowledge Gateway, which includes discussions, resources, and news on ethics, audit & assurance, and related topics, as well as subscribing to receive updates from the IAASB, IAESB, IPSASB, and IFAC Committees. You can unsubscribe or update your preferences at any time. 

By registering on the IFAC website, you can also:

• submit comments on the IESBA’s Exposure Drafts and Consultation Papers;
• submit translations and permissions requests or inquiries;
• interact on the Global Knowledge Gateway and MOSAIC websites, including:
  • commenting on discussions and viewpoints;
  • recommending discussions and resources; and
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In January 2015, the International Audit and Assurance Standards Board^® (IAASB^®) released its new and revised Auditor Reporting standards. As noted by IAASB Chairman Prof. Arnold Schilder, the new and revised standards will reinvigorate the audit, as auditors substantively change their behavior and how they communicate about their work.

The most significant enhancement is the new requirement for auditors of financial statements of listed entities to communicate “Key Audit Matters” – those matters that the auditor judges to be of most significance in the current period audit, with an explanation of how they were addressed in the audit. The IAASB has also focused efforts on enhancing auditor attention and communication on matters related to going concern in the auditor’s report. 

In conjunction with the release of the standards, the IAASB established an Auditor Reporting Implementation Working Group (WG) to promote the awareness and effective implementation of the standards. The WG’s work to date includes the development of an Auditor Reporting Toolkit, featured on “The New Auditor’s Report” webpage, currently comprised of a Fact Sheet, an At a Glance (including an illustrative auditor’s report) and a slide presentation. Topic-specific publications on Key Audit Matters and Going Concern have also been developed, the most recent of which includes illustrated examples of Key Audit Matters.

In December 2014, the IAASB released its five-year Strategy for 2015–2019: Fulfilling Our Public Interest Mandate in an Evolving World and its Work Plan for 2015–2016: Enhancing Audit Quality and Preparing for the Future. Developed after extensive public consultation, these publications reinforce the IAASB’s commitment to strengthening public confidence in financial reporting and contributing to the ongoing relevance of the financial statement audit, while staying abreast of emerging developments to ensure its work addresses pertinent public interest matters relevant to its wide range of stakeholders.

Work on the topics of quality control, group audits and special considerations related to financial instruments has commenced and was discussed at the IAASB’s most recent meeting.

The IAASB last met in Brussels in March 2015. Meeting highlights and a podcast  summary of key meeting outcomes can be found on the IAASB’s Meetings page.

At this meeting, the IAASB unanimously approved changes to its International Standards on Auditing™ (ISAs™) to address disclosures in audits of financial statements. The revised ISAs are subject to confirmation by the Public Interest Oversight Board (PIOB) of due process followed and are expected to be released in July 2015. A staff publication explaining how the ISAs address disclosures will be released concurrently with the changes to the ISAs.

The IAASB also agreed that amendments to certain of its standards may be necessary as a result of the International Ethics Standards Board for Accountants’ project on Non-Compliance with Laws and Regulations (NOCLAR).

The IAASB has continued its extensive outreach program contemplated in its Strategy. It has compliled a detailed listing of its outreach activities. Recent activity of note includes:

• Meetings with the Monitoring Group as a whole as well as its member organizations, for example: 
  • Increasing dialogue with the International Forum of Independent Audit Regulators and its Standards Coordination Working Group, and the International Organizations of Securities Commissions on auditor reporting and new projects.
  • Commencing discussions with international supervisors and prudential regulators in the banking and insurance industries to inform the project relating to special audit considerations relating to financial institutions.
• Continued dialogue with the PIOB, including participating in a joint meeting with the PIOB, the Chairs of the IAASB, IESBA and International Accounting Education Standards Boards and their Consultative Advisory Groups (CAGs).
• Semi-annual meeting with the IAASB CAG to obtain their input on the topics on the IAASB’s agenda from both a strategic and technical perspective.
• Country-specific outreach to the UK, including meetings with investors, regulators, accounting firms, professional accountancy organizations and other thought leaders.
• Together with the Fédération des Experts Comptables Européens (FEE), outreach to audit committee members in Europe to discuss the effects of the enhancements arising from the Auditor Reporting project on audit committees and matters related to audit quality more generally.
• Liaison with the International Accounting Standards Board to consider challenges arising from new financial reporting standards and the potential implications of these changes on the auditing standards.
• Continued engagement with accounting firms, through meetings with the Global Public Policy Committee (GPPC), Forum of Firms, and Small and Medium Practices Committee, on both strategic and technical matters.

Together with the Institute of Chartered Accountants of Scotland (ICAS) and the International Association for Accounting Education and Research (IAAER), on March 30, 2015 the IAASB announced a new global call for research to gather independent academic evidence to inform its standard-setting process. The deadline for submission of proposals is October 1, 2015. 

The IAASB is pleased that 105 jurisdictions have either adopted or are committed to adopting the clarified ISAs. Of note, IAASB Chairman Prof. Arnold Schilder was the keynote speaker at a March 4, 2015 ceremony in Rome, Italy, marking the nation’s official adoption of the clarified ISAs. More information can be found in the latest edition of the Consiglio Nazionale dei Dottori Commercialisti e Degli Esperti Contabili journal Press.

Matthew Waldron, an investor advocate and current Director of the Financial Reporting Policy Group at the CFA Institute, assumed the role of chair of the IAASB CAG on April 1, 2015. He succeeds Prof. Linda de Beer, who had served as IAASB CAG Chair since September 2010. Mr. Waldron had been the CFA Institute’s representative to the IAASB CAG since 2008 and his prior experience includes working for KPMG, PwC, and the Federal Home Loan Mortgage Corporation.

The next IAASB meeting will be held in New York, USA, on June 15-19, 2015. The agenda and meeting materials are posted approximately three to four weeks in advance on the IAASB Meetings page. Members of the public may register to observe the meetings and registration closes one week before the first day of the meeting.

The next IAASB CAG meeting is scheduled for September 15-16, 2015 in New York, USA.

Following a review of comments received on its Exposure Draft, as well as consultation with the IESBA Consultative Advisory Group, the IESBA unanimously approved changes to the Code of Ethics for Professional Accountants™ (the Code) regarding the provision of non-assurance services (NAS) to audit and assurance clients. Subject to approval from the Public Interest Oversight Board (PIOB), the revised provisions will be published by early April. Changes to the Code will include:

• The withdrawal of the exception provisions that permit an audit firm to provide certain bookkeeping and taxation services to public interest entity (PIE) audit clients in emergency situations;
• Additional guidance and clarification regarding what constitutes management responsibility; and
• Enhanced guidance and clarification regarding the concept of “routine or mechanical” services relating to the preparation of accounting records and financial statements for non-PIE audit clients.

The IESBA also approved corresponding and conforming changes to Section 291 of the Code pertaining to the provision of NAS to assurance clients that are not audit clients. The changes will be effective approximately one year after the release of the final pronouncement.

The IESBA discussed a number of topics, including the possibility of rebranding the Code and aligning certain definitions of terms used in the Code with those of the International Auditing and Assurance Standards Board^® (IAASB^®).

In addition, the IESBA received a brief progress report on the project’s background work, including the possibility of using a plain English editor and refining the drafting guidelines for the restructuring work.

At its next meeting in April, the IESBA will consider responses to its Structure of the Code Consultation Paper, which closed on February 4. The board is also expected to consider a preliminary draft of sections of the restructured Code.

To enhance accessibility and navigability, the Code is now available in a new web-based format. Enhancements to the web-based Code are being considered in tandem with the restructuring.

The IESBA approved a new project to review the clarity, appropriateness, and effectiveness of the safeguards in Sections 100 and 200 of the Code and those safeguards that pertain to non-assurance services in Section 290.

The IESBA will consider preliminary issues at its April 2015 meeting, including the approach to co-ordination between this project and the Structure of the Code project.

The IESBA considered a revised draft of the proposed provisions on responding to non-compliance or suspected non-compliance with laws & regulations (NOCLAR). Topics discussed included:

• The factors to consider in determining whether or not to disclose NOCLAR or suspected NOCLAR to an appropriate authority;
• A draft rationale for the proposed response framework, which outlines the framework’s strengths in guiding professional accountants in assessing the implications of NOCLAR or suspected NOCLAR and the possible courses of action in responding to it; and
• Illustrations of how the proposed standard can be applied.

The IESBA will consider a revised draft of the standard with a view to approval for re-exposure at its April 2015 meeting.

The IESBA considered comments received on its Exposure Draft concerning the long association of personnel with an audit or assurance client. Among other matters, the IESBA discussed, with respect to audits of public interest entities (PIEs):

• the length of the time-on period for all key audit partners (KAPs);
• the length of the cooling-off period for other KAPs, including the engagement quality control reviewer;
• the length of the cooling-off period for the engagement partner; and
• the proposed provision that a KAP, who at any time during the seven-year time-on period served as an engagement partner, be required to cool off for five years.

The IESBA will consider significant comments on other aspects of the Exposure Draft and a revised draft of the pronouncement at its April 2015 meeting.

The IESBA discussed preliminary matters regarding Phase 2 of its project to enhance Part C of the Code, which deals with professional accountants in business (PAIBs). Topics discussed included the scope and objectives of this second phase, and use of terminology, including translatability of terms. The IESBA will consider revised proposals regarding the approach to Phase 2 and its scope in due course.

Transparency International (TI) UK attended this portion of the meeting and gave a presentation to the board on the role of accountants in relation to corruption and bribery, which is particularly relevant to Part C of the Code.

Meanwhile, the IESBA’s Exposure Draft, which comprises Phase 1 of the project, is open for comment until April 15, 2015. All stakeholders are encouraged to comment on the proposed changes, which include:

• Section 320—revisions dealing, in particular, with misuse of discretion when preparing or presenting financial information. The revisions include enhanced guidance on how discretion can be misused in a manner intended to mislead, and the PAIB’s actions when faced with misleading information.
• Section 370—a new section to guide PAIBs on responding to pressure from superiors or others to breach the fundamental principles, and on not placing pressure on others that would result in a breach of the fundamental principles.

Learn more and submit a comment.

Last year, the International Federation of Accountants^® (IFAC^®) launched the Global Knowledge Gateway™, a digital hub for the global accountancy profession: www.ifac.org/global-knowledge-gateway. The Gateway serves professional and aspiring accountants in all sectors by providing streamlined access to relevant resources, news, discussions, and thought leadership in ten different areas, including ethics. Resources in this area, designed to serve both accountants in business and in practice, include surveys and reports on business ethics issues, as well as practical guidance on implementing the IESBA Code and other codes of conduct.

We invite you to explore, contribute your views and recommendations, suggest new resources, and subscribe to receive customized bi-monthly updates on new ethics and other content added to the Gateway. Register and subscribe to take full advantage of these features. 

Meetings of the Ethics Board and the Ethics Board’s Consultative Advisory Group (CAG) are open to the public. The next IESBA CAG meeting will be held in New York, USA, on March 10–11, 2015. The next board meeting will be held in New York, USA, on April 13–15, 2015.

For more information and to register to attend an Ethics Board or Ethics Board CAG meeting as an observer, visit Ethics Board Meetings  and Ethics Board CAG Meetings respectively.

The IESBA is recruiting at the Deputy Director and Senior Technical Manager levels for its staff team based in New York. For complete job descriptions and required skills and experience for these roles, see Working at IFAC. Qualified candidates should send their resume to jobs@ifac.org.

At the World Congress of Accountants (WCOA) 2014 in Rome, the session “Translating International Standards and Guidance: Best Practices and Tools to Achieve Quality Translation” offered an opportunity to share best practices, technical tools, and IFAC^® policies on translation. Interest in this session ran high and WCOA 2014 officials had to relocate it to accommodate a larger audience.

Chaired by Kelly Anerud, IFAC Deputy Director, Intellectual Property, it provided a comprehensive overview of resources and competencies required to achieve high-quality and widely accepted translations of international standards and related guidance.

In addition to the Chair’s presentation, “Translating International Standards and Guidance,” the session included presentations by Hilde Blomme, Deputy CEO of the Federation of European Accountants (FEE), who focused on the challenges of representing one region with many languages, by Javier Quintana, Secretary of the Ibero-American Cooperation Framework (IberAm Project) and CEO of the Instituto de Censores Jurados de Cuentas de España, who discussed the experiences of the IberAm Project in working with several regions and numerous countries represented by one language; and by Mariarita Cafulli, Head of the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabli Translation Department, who shared useful tools and resources, such as computer software, for translating international standards.

IFAC's Intellectual Property, Translations, & Permissions Department recently introduced the “IFAC Translator Forum,” a subgroup of IFAC’s LinkedIn group. The “IFAC Translator Forum,” which has nearly 100 members, is targeted to IFAC-designated translating body contacts and related stakeholders as a way to share best practices, collaborate, submit questions and offer responses on topics related to the translation of standards, handbooks, guides, and tools. To request membership, click “Join” and the request will be reviewed by the group manager. Membership in the IFAC LinkedIn group, which is open to all, is required to join the IFAC Translator Forum. 

Following a meeting at WCOA 2014 between 10 organizations representing 30 Francophone nations, the French translating bodies are progressing in their efforts to produce a more formal structure for collaboration on high-quality French translations of international standards and other IFAC publications. Representatives from a subgroup of the French translating bodies will meet with IFAC in March to work on a draft cooperation framework and to prepare a preliminary Memorandum of Understanding. 

In December, the IberAm Project published the authorized Spanish translation of IFAC’s Statements of Membership Obligations (SMOs). IFAC officials called this a “milestone development” for the IberAm Project, as it represents the first document to have undergone the complete IberAm process, which includes translation, transfer to translation memory software, review, approval, formatting, and publication. The IberAm Project Memorandum of Understanding was signed on October 2, 2012, at IFAC’s New York offices with the goal of developing single, high-quality Spanish language translations of international standards and other IFAC publications.

The IberAm Project Executive Committee recently approved the final translation of the International Auditing and Assurance Standards Board^® (IAASB^®) 2013 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, Volume I, and other documents, including publications from the IAASB, the International Ethics Standards Board for Accountants^® (IESBA^®), the Professional Accountants in Business (PAIB) and Professional Accountancy Organization (PAO) Development committees, and a summary of IFAC Policy Position Papers 1-8. These translations will now proceed to be published in various formats over the coming months. Other documents, such as IAASB Exposure Drafts, IAASB video modules, Small and Medium Practices (SMP) guidance, toolkits from the PAO Development Committee, and publications from the PAIB Committee are in various stages of the IberAm process and will be published over the coming months.

IFAC’s Intellectual Property, Translations & Permissions department encourages stakeholders to utilize the recently launched Online Permission Request and Inquiry (OPRI) Management system, which is designed to streamline the process of submitting requests for reproduction, translation, and information. OPRI allows registered users to submit new requests by type (reproduction, translation of international standards, translation of other publications, or inquiry) as well as manage all their requests in one place, duplicate existing requests to save time when placing new ones, and view the status of pending requests.

IFAC is now using social media to update stakeholders on recently translated publications and resources, via IFAC’s @IFAC_Update handle on Twitter. Here are the latest translated publications:

• In Danish (FSR): International Standard on Assurance Engagements (ISAE) 3000, (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information;
• In Kazakh (MoF): Handbook of International Public Sector Accounting Pronouncements, 2014 Edition
• In Romanian (CFAR): IFAC SMP Quick Poll: 2013 Year-End Round-Up;
• In Slovak (SKAU): Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition;
• In Ukrainian (AAU): Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition;
• In Ukrainian (AchU): Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements; 2013 Edition;
• In Bulgarian (ICPAB): Handbook of International Education Pronouncements, 2014 Edition; and
• In Arabic (IASCA): Handbook of International Public Sector Accounting Pronouncements, 2014 Edition

IFAC has recently revised and updated the Frequently Asked Questions (FAQs) section of the Intellectual Property, Translations & Permissions web page. This section includes 50 responses related to areas of interest such as IFAC’s relevant policies and processes, performing quality translations, the process for obtaining an agreement with IFAC to perform or reproduce translations, terminology used in translations, and use of IFAC logos, trademarks, and graphics. The FAQs are a useful resource for a range of stakeholders, including IFAC member bodies, national standard-setting bodies, adopting authorities, training providers, and commercial publishers. 

IFAC’s Translations Database is adding new enhancements, including an improved search/sort function, publication title in the language of translation, and links from the translated publications to the original English-language documents. The publicly available Translations Database lists authorized translations of IFAC publications, including the international standards, and the ongoing enhancements are aimed at improving user-friendliness and expanding its search functionality. These new features are expected to be available during the second quarter of 2015.

The Ethics Board approved the Consultation Paper, Improving the Structure of the IESBA Code of Ethics for Professional Accountants (the Code). The paper consults on approaches that could be taken to improve the clarity and usability of the Code through revising its structure, thereby facilitating its adoption, effective implementation, and consistent application. Among other matters, the consultation is seeking stakeholders’ input on:

• restructuring the Code by more clearly distinguishing requirements from guidance;
• reorganizing the content of the Code, including rebranding it, or parts of it, as international standards;
• using simpler language and shorter sentences; and
• identifying a firm’s or an individual’s responsibility for compliance with the Code in particular circumstances to facilitate compliance and enforcement.

The paper also includes illustrative examples to show how the restructured Code might be presented. The Consultation Paper will be released in the coming week and open for public comment through early-February 2015. In connection with this project, a web-based version of the Code—to enhance accessibility and navigability—is currently in development and is expected to go live in the coming weeks.

The Ethics Board approved for exposure the following proposed changes to Part C of the Code, which addresses professional accountants in business (PAIBs):

• Section 320—revisions dealing, in particular, with misuse of discretion when preparing or presenting financial information. The revisions include enhanced guidance on how discretion can be misused in a manner intended to mislead, and the PAIB’s actions when faced with misleading information.
• Section 370—a new section to guide PAIBs on responding to pressure from superiors or others to breach the fundamental principles, and on not placing pressure on others that would result in a breach of the fundamental principles.

Conforming changes have been proposed to other sections of Part C of the Code.

The Exposure Draft is expected to be issued by mid-November 2014. Comments will be requested by mid-February 2015. As part of Phase 2 of this project, the Ethics Board will consider preliminary issues pertaining to a review of Section 350, addressing inducements, at its January 2015 meeting.

In September, following approval by the Public Interest Oversight Board that due process had been followed, the Ethics Board released its Strategy and Work Plan, 2014-2018.

The IESBA Strategy & Work Plan, 2014-2018 highlights the board’s priorities and planned actions toward achieving its objective of setting high-quality ethics standards for professional accountants that are widely adopted around the world. The Strategy and Work Plan lays out four inter-connected strategic themes that articulate the board’s vision over the medium to longer term:

• maintaining a high-quality Code for application by professional accountants globally;
• promoting and facilitating the adoption and effective implementation of the Code;
• evolving the Code for continued relevance in a changing global environment; and
• increasing engagement and cooperation with key stakeholders.

A separate Basis for Conclusions has been prepared by staff to accompany the Strategy and Work Plan. 

The Ethics Board considered the feedback received from its three global roundtables, held in Hong Kong, Brussels, and Washington DC earlier this year, on its project addressing professional accountants’ responsibilities to respond to suspected non-compliance with laws and regulations (NOCLAR). It also considered Task Force proposals regarding a revised framework for how auditors, professional accountants in public practice providing non-assurance services, senior-level PAIBs, and other PAIBs could respond to suspected NOCLAR.

The Ethics Board will discuss a revised draft of the proposed new sections (225 and 360), and related changes to other sections of the Code, at its January 2015 meeting in preparation for re-exposure by mid-2015. 

The Ethics Board considered significant comments received on its Exposure Draft, Proposed Changes to Certain Provisions of the Code Addressing Non-Assurance Services for Audit Clients, and related Task Force proposals, aimed at enhancing the independence provisions in Section 290 (Independence—Audit and Review Engagements). The discussion focused on the three areas covered by the Exposure Draft:

• the proposed withdrawal of the emergency exception provisions pertaining to bookkeeping and taxation services provided to audit clients that are public interest entities (PIEs);
• additional guidance on safeguards on and clarification regarding what constitutes management responsibility; and
• enhanced guidance and clarification on the concept of “routine or mechanical” services relating to the preparation of accounting records and financial statements for non-PIE audit clients.

The Ethics Board will seek input from its Consultative Advisory Group in November 2014 regarding the significant comments received on the Exposure Draft and the board’s indicative direction forward on the key issues. The Ethics Board will consider a revised draft of the proposed changes to the Code with a view to approval at its January 2015 meeting.

The 2014 editions of the handbooks from the following boards supported by the International Federation of Accountants^® (IFAC^®) are now available:

• International Auditing and Assurance Standards Board^® (IAASB^®);
• International Accounting Education Standards Board™ (IAESB™);
• International Ethics Standards Board for Accountants^® (IESBA^®); and
• International Public Sector Accounting Standards Board^® (IPSASB^®).

To access electronic copies of the handbooks for personal use, purchase print copies, or find information on recent developments and outstanding Exposure Drafts and Consultation Papers from each of the boards, visit their respective web pages: www.iaasb.org, www.iaesb.org, www.ethicsboard.org, and www.ipsasb.org.

The 2014 Handbook of the Code of Ethics for Professional Accountants incorporates several revised pronouncements that are now effective—addressing a breach of a requirement of the Code, conflicts of interest, and the definition of “those charged with governance.” It also contains the revised definition of “engagement team” (effective for audits of financial statements for periods ending on or after December 15, 2014). In connection with the Structure of the Code project (see above), a web-based version of the Code—with enhanced accessibility and navigability—is currently in development and expected to go live in the coming weeks. 

Earlier this year, the International Federation of Accountants (IFAC) launched the Global Knowledge Gateway™, a new digital hub for the global accountancy profession: www.ifac.org/global-knowledge-gateway. The Gateway serves professional and aspiring accountants in all sectors by providing streamlined access to relevant resources, news, discussions, and thought leadership in nine different areas, including ethics. Resources in this area, designed to serve both accountants in business and in practice, include surveys and reports on business ethics issues, as well as practical guidance on implementing the IESBA Code and other codes of conduct.

We invite you to explore and contribute your views to the discussions, recommend content that you find the most useful, suggest new resources, and subscribe to receive customized updates on new content added to the Gateway. Register to take full advantage of all of these features. 

Several months ago, the Ethics Board launched a Twitter handle to increase engagement with the public and with professional accountants worldwide, enhance its profile and brand, and increase the transparency and timeliness of its communications. Stay current on the Ethics Board’s projects, publications, and meeting decisions, as well as the latest accounting and business ethics news, trends, and resources from around the world. We hope you’ll stay connected and join us: @Ethics_Board.

Meetings of the Ethics Board and the Ethics Board’s Consultative Advisory Group (CAG) are open to the public. The next meeting of the board will be held in London, United Kingdom, on January 12–14, 2015. The next CAG teleconference will be held on November 18, 2014, and the next physical CAG meeting will be held in New York, New York, USA, on March 10–11, 2015.

For more information and to register to attend an Ethics Board or Ethics Board CAG meeting as an observer, visit Ethics Board Meetings and Ethics Board CAG Meetings respectively.

The 2014 World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy, November 10-13. Themed 2020 Vision: Learning from the Past, Building the Future, the WCOA 2014 will be held at the Auditorium Parco della Musica. Almost 4,000 professionals from around the world will convene at this quadrennial IFAC event. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will shape its future. Days 2 and 3 feature sessions on ethics: “Fighting Corruption and Fraud: The Role of Professional Accountants” and “Code of Ethics: Shaping Behavior.” View the full agenda and register here.

Online registration closes October 31, 2014. If you are unable to register on the website, please contact the WCOA Secretariat: wcoa2014@adriapoint.it.

To streamline the process for submitting requests for reproduction, translation, and information, IFAC has launched its new Online Permission Request and Inquiry Management (OPRI) system. The new online function allows registered users to submit new requests by type (reproduction, translation of international standards, translations of other publications, and inquiry) as well as manage all their requests in one place, duplicate existing requests to save time when placing new ones, and view the status of pending requests.

Typical users of the system include:

• Relevant staff of IFAC’s designated translating bodies (or organizations wishing to become a designated translating body) seeking permission to translate IFAC’s copyrighted publications, including the international standards;
• Relevant staff of IFAC’s member bodies and associates, or other relevant organizations seeking permission to modify, adapt, reproduce, or adopt all or part of IFAC’s copyrighted publications, including the international standards;
• Those seeking permission to reproduce illustrations or extracts from IFAC’s content (for example in textbooks or other publications);
• Commercial publishers;
• Training providers; and
• Other organizations or individuals seeking information or wishing to use IFAC’s intellectual property.

To better reflect the breadth of activities under its purview, IFAC’s Translations & Permissions department has changed its name to “Intellectual Property.” The activities provided by the department, across IFAC and the independent standard-setting boards, include not only matters related to translations of IFAC publications and reproduction permissions for use of copyrighted content, but also to the administration of IFAC’s numerous trademarks.  

The World Congress of Accountants (WCOA) 2014 will explore the evolution of the accountancy profession and showcase the innovations that will shape its future. WCOA 2014 features a workshop session entitled “Translating International Standards and Guidance: Best Practices and Tools to Achieve Quality Translations” on Wednesday, November 12, from 11:15 a.m. to 12:45 p.m.  The workshop will be informative as well as interactive, with opportunities for discussion, questions and answers. Thanks to all who completed the survey, the responses to which will be shared during the workshop. View the WCOA 2014 event program.

IFAC is now using social media to update stakeholders on recently translated publications and resources. Via IFAC’s @IFAC_Update on Twitter, it has recently shared news about the following translations:

• Russian (CPARK): Tools and Resources to Support the Development of the Accounting Profession
• Bulgarian (ICPAB): Guide to Review Engagements
• Persian (IACPA): Handbook of the Code of Ethics for Professional Accountants

IFAC will use social media to provide updates about other translations as they become available.

IFAC is currently working on enhancing its Translations Database, which lists authorized translations of IFAC publications, including the international standards, with the aim of improving user-friendliness and expanding its search functionality. The Translations Database is a publicly available resource that helps IFAC serve the public interest and promote adoption and implementation of international standards.

• Bosnian-Croatian-Serbian (CEF):  Policy Paper, Process for Considering GFS Reporting Guidelines during Development of IPSASs
• Estonian (MoF): ISRE 2400 (Revised): Engagements to Review Historical Financial Statements
• Polish (AAP): Review Engagements-A Value-Adding Client Service
• Russian (CEF):  Policy Paper, Process for Considering GFS Reporting Guidelines during Development of IPSASs
• Russian (AAS): Development and Management of Written Examinations. Information Paper (Revised)
• Spanish (INCP):
  • Monthly Update, May 2014
  • IESBA press release, May 20
  • Global Digest, June 2014
  • IAESB press release, July 23
  • IESBA eNews, August 2014
  • IPSASB eNews, August 2014
  • IAESB press release, Aug 13
  • IAESB eNews, August 2014
  • IAESB press release, August 25
  • IPSASB press release, August 27
• Turkish (POAASA): International Standard on Review Engagements (ISRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity; International Standards on Related Services (ISRS) 4400, Engagements to Perform Agreed-Upon Procedures Regarding Financial Information

In mid-July, the IESBA^® launched a Twitter handle to increase engagement with the public and with professional accountants worldwide, enhance its profile and brand, and increase the transparency and timeliness of its communications. Stay current on the IESBA’s projects, publications, and meeting decisions, as well as the latest accounting and business ethics news, trends, and resources from around the world. We hope you’ll stay connected and join us at @Ethics_Board.

The 2014 Handbook of the Code of Ethics for Professional Accountants™ is now available. The 2014 edition incorporates several revised pronouncements that were published previously and are now effective—addressing a breach of a requirement of the Code, conflicts of interest, and the definition of “those charged with governance.” It also contains the revised definition of “engagement team” (effective for audits of financial statements for periods ending on or after December 15, 2014).

To access the handbook for personal use or to purchase print copies (US $65.00, plus shipping & handling), see Handbook of the Code of Ethics for Professional Accountants.  In connection with the Structure of the Code project (see below), a web-based version of the Code—with enhanced accessibility and navigability—is currently in development and expected to go live in Q4. 

The Ethics Board approved, subject to confirmation by the Public Interest Oversight Board (PIOB) that due process has been followed, its Strategy and Work Plan, 2014-2018, expected for publication by early October 2014. As part of its due process to seek stakeholder input in the plan’s development, the board previously issued a draft of the strategy and work plan for public consultation. View the Consultation Paper and 38 comment letters.

The Ethics Board approved for public comment changes to the provisions in Section 290 of the Code of Ethics for Professional Accountants (the Code) dealing with long association of senior personnel with an audit client. The Exposure Draft (ED) responds to several issues raised by stakeholders, including issues of independence in appearance. The ED broadly covers the following areas:

• Strengthening the general provisions that apply to all audit engagements;
• Increasing the mandatory cooling-off period for the engagement partner on the audit of a client that is a public interest entity;
• Strengthening the restrictions on the type of activities that can be undertaken by any former key audit partner during the cooling-off period; and
• Ensuring the concurrence of those charged with governance with respect to the application of certain exception paragraphs.

The ED also includes corresponding changes to Section 291 of the Code dealing with long association of senior personnel with an assurance client. The ED is expected for release in mid-August with a 90-day comment period.

The Ethics Board considered the Task Force’s preliminary draft Consultation Paper, setting out proposals for improving the clarity and usability of the Code. Among other matters, the board discussed:  

• The approach to coordinating a review of safeguards in the Code (see non-assurance services below) with the work on restructuring the Code;
• The approach to clarifying responsibility for compliance with the Code in particular circumstances;
• Alignment of the timing of deliverables on other projects in progress with the restructuring work; and
• General structure and reorganization matters.

In connection with this project, a web-based version of the current 2014 Code is currently being developed to improve its accessibility and navigability. The IESBA will consider a revised draft of the Consultation Paper with a view to approval at its October 2014 meeting.

The Ethics Board considered and provided input on proposed changes to the following sections of Part C—Professional Accountants in Business of the Code:

• Section 320—an existing section addressing the preparation and reporting of information; and
• Section 370—a proposed new section addressing the topic of pressure by superiors and others to breach the fundamental principles.

Among other matters, the board also discussed Task Force proposals addressing the misuse of discretion under the applicable reporting framework in order to mislead. At its October 2014 meeting, the board will consider revised drafts of the proposed changes to Part C with a view to approval for public exposure.

In May, the Ethics Board released an Exposure Draft (ED), Proposed Changes to Certain Provisions of the Code Addressing Non-Assurance Services for Audit Clients, aimed at enhancing the independence provisions in Section 290 (Independence—Audit and Review Engagements) by:

• Giving auditors providing non-assurance services to an audit client additional guidance and clarification on what constitutes management responsibility, including enhanced guidance on how auditors can better satisfy themselves that client management will make all the judgments and decisions that are its responsibility;
• With respect to the preparation of accounting records and financial statements for non-public interest entity (non-PIE) audit clients, offering better guidance and clarification regarding the concept of “routine or mechanical” services; and
• Removing the provision that permits an audit firm to provide certain bookkeeping and taxation services to PIE audit clients in emergency situations.

The ED also includes proposed enhancements to corresponding non-assurance services provisions in Section 291 of the Code with respect to assurance clients. Comments are requested by August 18.

Please note: An editorial correction has been made to the ED. The mark-up section now shows the proposed deletion of paragraphs, 290.164, 290.174, and 291.145, which had inadvertently been omitted in the original file.

In advance of the final pronouncement addressing non-assurance services, the Ethics Board had considered developing a position paper on the topic, but agreed at its July meeting that a work stream on safeguards should be completed before determining the nature, scope, and timing of such a paper. The board asked the Task Force to present a project proposal on safeguards for board consideration as soon as possible. The board will consider the significant comments received on the ED at its October 2014 meeting.

In May and June, the Ethics Board held its first two global roundtables, in Hong Kong and Brussels, and met with its national standard setter liaison group to gain feedback from stakeholders on the project addressing professional accountants’ responsibilities regarding suspected non-compliance with laws and regulations. The roundtables were very successful, with active participation and engagement from over 50 invited senior-level delegates at each event.

At its July meeting, the board received an update on these discussions and it will receive an update on the third and final global roundtable (Washington, DC on July 10) at its next meeting in October. Based on the input received and other considerations, the board will decide whether to produce and issue a revised Exposure Draft on responding to suspected non-compliance with laws and regulations in 2015.

Earlier this year, the International Federation of Accountants (IFAC) launched the Global Knowledge Gateway, a new digital hub for the global accountancy profession: www.ifac.org/gateway. The Gateway serves professional and aspiring accountants in all sectors by providing streamlined access to relevant resources, news, discussions, and thought leadership in nine different areas, including ethics. Resources in this area, designed to serve both accountants in business and in practice, include surveys and reports on business ethics issues, as well as practical guidance on implementing the IESBA Code and other codes of conduct.

We invite you to explore and contribute your views to the discussions, recommend content that you find the most useful, suggest new resources, and subscribe to receive customized updates on new content added to the Gateway. Register to take full advantage of all of these features. 

Meetings of the Ethics Board and the Ethics Board’s Consultative Advisory Group (CAG) are open to the public. The next meeting of the board will be held in New York, New York, USA, on October 13-15, 2014. The next CAG meeting will be held in New York, New York, USA, on September 9-10, 2014.

For more information and to register to attend an Ethics Board or Ethics Board CAG meeting as an observer, visit Ethics Board Meetings  and Ethics Board CAG Meetings respectively.

The 2014 World Congress of Accountants (WCOA) will be hosted by the Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) in Rome, Italy, later this year. Themed 2020 Vision: Learning from the Past, Building the Future, the WCOA 2014 will be held November 10-13 at the Auditorium Parco della Musica. More than 4,000 professionals from around the world will convene at this quadrennial IFAC event. WCOA 2014 will look back to explore the evolution of the accountancy profession and forward to showcase the innovations that will shape its future. Day 3 features a session on ethics: “Code of Ethics: Shaping Behavior.”  View the full agenda and register here.

The WCOA also provides a global platform for organizations and firms to share their projects and visions via various sponsorship opportunities. For more information, please contact info@wcoa2014rome.com or Dimarco@wcoa2014rome.com.