![]() ![]() The provisions related to acting as a witness have been revised and include application material to explain the circumstances in which the advocacy threat created by acting as an expert witness will be at an acceptable level.The provisions that prohibit firms and network firms from assuming a management responsibility are now more prominent as they have been repositioned to Section 400.The revised NAS provisions identify certain situations where a self-review threat to independence is not created.New provisions and structural refinements to promote the consistent application of the NAS provisions.Strengthened provisions to assist firms in addressing threats to independence that might be created by the provision of NAS to audit clients that are not PIEs, including new application material in relation to situations where a safeguard is not available.Enhanced guidance to explain that the concept of materiality is not relevant in evaluating whether a self-review threat might be created by the provision of a NAS to an audit client that is a PIE.New provisions to strengthen firm communication with those charged with governance (TCWG) about NAS-related matters, especially in the case of an audit client that is a PIE and entities within that PIE’s corporate structure.New guidance indicating that the provision of advice and recommendations might create a self-review threat and explaining the circumstances in which a firm or a network firm may provide advice and recommendations to an audit client.New provisions to assist firms and network firms in identifying and evaluating self-review threats that might be created by the provision of a NAS to an audit client.These changes include:Ī new general prohibition on a firm or network firm to provide a NAS to an audit client that is a public interest entity (PIE) if the provision of that service might create a self-review threat to the firm’s independence. IESBA published a mapping document that details the revisions to the extant Code by section, which assists in understanding the key changes. The revised NAS provisions address circumstances in which firms and network firms may or may not provide a NAS to an audit or assurance client. In April 2021, IESBA released revisions to the Non-Assurance Services (NAS) provisions of the Code. Below is a summary of the forthcoming key changes to the International Ethics Standards Board for Accountants (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code), focused on those which are coming into effect from December 15, 2022. One of IFAC’s three strategic objectives is ‘Contributing to and promoting the development, adoption, and implementation of high-quality international standards’. ![]()
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