The International Ethics Standards Board for Accountants (IESBA) posted a podcast that highlights the September 16 - 19, 2019 IESBA meeting and highlights from the IESBA and IAASB (International Auditing and Assurance Standards Board) Joint Plenary Session held on September 18, 2019.
Opening Comments. IESBA Chair Stavros Thomadakis noted the Board's continued progress on several of its projects, including coordination with the IAASB on many levels. He also noted that Sagar Teotia (Chair of the US Securities and Exchange Commission and Co-chair of the Monitoring Group) addressed the IESBA and IAASB and stated his willingness (along with the rest of the Monitoring Group) to engage the Boards in conversation about the process of reform.
Proposal to align Part B of Code to reflect terms and concepts used in the ISAE 3000 Revised. The comment period ended in June; comments, which reflected general support for the proposal, were summarized for the IESBA. All members voted to adopt the proposal which now awaits approval by the Public Interest Oversight Board. The effective date will be periods beginning on or after June 15, 2021.
Nonassurance services project. Discussion of the key principles was followed by a review of the proposed changes to section 600 of the Code. The task force will present a proposal for exposure in December 2019, which should be published shortly thereafter.
Fees project. The task force reduced the complexity of the earlier document and made changes to the Code more principles-based, which the Board favored. Also, there appears to be broad acceptance that professional accountants performing assurance services should evaluate self-interest threats to independence using the conceptual framework. The IESBA discussed the project with the IAASB (there's a joint working group with IAASB to address issues of common interest, including the fees project). The task force will bring a proposal to the IESBA for possible exposure in December.
Technology Project. The task force presented its preliminary findings and recommendations from Phase 1 and will make a final presentation in December 2019 with recommendations on moving into Phase 2.
Next meeting. December 3 - 6 in NYC.
