Presentation by Ken Siong, IESBA Technical Director, for American Accounting Association, International Accounting Section, Midyear Meeting, February 19, 2016 in New Orleans, LA, USA
Boost the utilization of your HCL environment by reevaluating use cases and f...
IESBA Update
1. Page 1 | Proprietary and Copyrighted Information
IESBA Update
Ken Siong, IESBA Technical Director
American Accounting Association,
International Accounting Section,
Midyear Meeting
New Orleans, February 19, 2016
2. Page 2 | Proprietary and Copyrighted Information
Committed to adopt (1)
India
Converging (4)
Canada
Indonesia
Germany
USA (unlisted entities)
Adopted/Based on (12)
Australia South Africa
Brazil Saudi Arabia
China South Korea
Italy Mexico
Japan Turkey
Russia UK
• Adopted or converged, or used as basis for national ethical
requirements in 120+ countries
• G-20 countries:
Global Adoption of IESBA Code
3. Page 3 | Proprietary and Copyrighted Information
• Importance of evidence-based standard setting recognized
in Strategy and Work Plan
• Role of academic community
• Lead time needed for research
• IESBA commitment to explore closer links with the
academic community
IESBA Strategy and Work Plan 2014-2018
4. Page 4 | Proprietary and Copyrighted Information
IESBA – Current Priority Projects
• Responding to non-compliance with laws and regulations
– Re-ED issued May 2015; new response framework proposed
– Anticipated finalization Q2 2016
• Improving structure of IESBA Code
– Enhancing usability to facilitate adoption and implementation
– ED Phase 1 issued Dec 2015
• Review of safeguards in the Code
– Clarity, appropriateness and effectiveness of safeguards
– ED Phase 1 issued Dec 2015
• Long association (partner rotation)
– Re-ED issued Feb 2016; anticipated finalization Q3 2016
5. Page 5 | Proprietary and Copyrighted Information
• Independence and ethics issues re fees paid to auditors
– Level of audit fees for particular audit engagements (downward
pressure)
– Fee dependency (partner and firm levels)
– Ratio of non-audit services fees to audit fees (client and firm levels)
• NOCLAR – post-implementation review
– Auditors and other professional accountants in public practice
– PAIBs
• Mandatory audit firm rotation
• Collective investment vehicles
Research Topics Relevant to IESBA’s Future Work