Transcript Non-Assurance Services: Project Proposal Caroline Gardner IESBA Member IESBA Meeting December 2012 New York, USA.

Non-Assurance Services:
Project Proposal
Caroline Gardner
IESBA Member
IESBA Meeting December 2012
New York, USA
Context
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Independence I
Independence II
International Developments
Public Interest Input
– Comments from 2008-9 & 2010-12 strategy consultations
• IOSCO recommends that the IESBA:
– Makes use of its related study; and
– Reconsider its provisions on non-assurance services
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About the project
• Project
– Objective
• Review non-assurance services provisions in the Code to ensure they continue
to support a rigorous approach to independence for assurance services
– Scope
• Main priority: Non-Assurance Services
• Lesser priority: Non-Assurance Services
Audit Clients
Other Assurance Clients
– Focus includes:
Existing services
Materiality
$ limits
Convergence
Other services
Approval
Exemptions
Guidance
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Matters to Consider
• Matters to consider include:
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Whether the Code’s “emergency exception” will be retained
Whether “materiality” is an appropriate basis for prohibitions
Whether management responsibilities include routine and administrative items
Whether and to what extent the following non-assurance services will be permitted,
for e.g.:
Bookkeeping
Internal Audit
Legal
Recruitment
Corporate finance
IT Systems
Tax
Valuation
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Other Considerations
• Process
– 2 phases?
• Timetable
– ED Q2 2014, subject to decision re phased approach
• Information/Relevant Sources
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Existing NAS provisions in major jurisdictions
IOSCO survey
Firms
Academic research?
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Discussion
IESBA members are requested to provide their views on the following
matters related to the project:
a.
b.
c.
d.
e.
f.
Objectives
Scope
Major issues to be addressed
Approach to project
Resource constraints
Other items
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