Book Publish Date
21-Feb-2023
Purpose of the Code:-
1. The International Code of Ethics for Professional Accountants (including International Independence Standards) sets out fundamental principles of ethics for professional accountants, reflecting the profession’s recognition of its public interest responsibility.
2. The Code provides a conceptual framework that professional accountants are to apply in order to identify, evaluate and address threats to compliance with the fundamental principles.
3.
In the case of audits, reviews and other assurance engagements, the Code sets out International Independence Standards, established by the application of the conceptual framework to threats to independence in relation to these engagements.
The new in this guide:-
1. The objectivity of an engagement quality reviewer (EQR) and other appropriate reviewers. Address the eligibility of an individual to serve in an EQR role, focusing on the critical attribute of objectivity.
2. A new prohibition on firms from providing to an audit client that is a public interest entity (PIE) a NAS that might create a self-review threat.
3. Strengthened provisions that specify the circumstances in which firms may or may not provide a NAS to an audit client.
4.
A requirement that a firm not allow the audit fee to be influenced by the provision of services other than audit to an audit client by the firm.
5. Strengthened provisions to address fee dependency at the firm level.
6.New provisions to promote more robust engagement between auditors and those charged with governance of PIEs about independence matters relating to NAS and fees.