ASCA Jordan

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.

The Handbook, issued for the first time separately from the international auditing standards, has been completely restructured in a new arrangement that makes it easier to navigate, use and enforce.

The Handbook has been revised as follows:
• NOCLAR Pronouncement—Responding to Non-Compliance with Laws and Regulations;
• Changes to the Code Addressing the Long Association of Personnel with an Audit or Assurance Client; and
• Changes to Part C of the Code Addressing Preparation and Presentation of Information and Pressure to Breach the Fundamental Principles. 

The Guide incorporates several substantive additions and revisions, including:
o Clearer and more robust provisions pertaining to safeguards that are better aligned with threats to compliance with the fundamental principles and to independence.
o Strengthened independence provisions addressing the long association of personnel with an audit or assurance client.
o New and revised sections dedicated to professional accountants in business (PAIBs) relating to preparing and presenting information, pressure to breach the fundamental principles.
o Clear guidance for professional accountants in public practice (PAPPs) that relevant PAIB provisions set out in Part 2 of the Code are applicable to them.
o Strengthened provisions for PAIBs and PAPPs pertaining to the offering or accepting of inducements, including gifts and hospitality. 
o New application material to emphasize the importance of understanding facts and circumstances when exercising professional judgment.
o New application material to explain how compliance with the fundamental principles supports the exercise of professional skepticism in an audit or other assurance engagement.