Transcript Non-Assurance Services Isabelle Sapet, IESBA Deputy Chair IESBA CAG Meeting September 11, 2013 New York Page 1

Non-Assurance Services
Isabelle Sapet, IESBA Deputy
Chair
IESBA CAG Meeting
September 11, 2013
New York
Page 1
Background
• Non-assurance services (NAS) work stream added to
work plan in 2012
– Consider additional restrictions concerning NAS
– Determine if materiality is still appropriate as a basis for prohibiting certain
NAS and if guidance is necessary to apply it
– Consider if preapproval of NAS by those charged with governance
(TCWG) is appropriate
• General Board agreement to objective of project but with
some concern as to scope given the recent independence
projects (Independence I & II)
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Non-Assurance Surveys
• Surveys requesting information sent to 26 jurisdictions
– Information sought with respect to PIEs and non-PIEs
– National provisions concerning NAS that are not addressed in the Code
– Survey also covered five key areas:
 Assuming management responsibility
 Preparing accounting records and financial statements
 Valuation services
 Taxation services
 Internal audit services
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Survey Responses
• Results noted the following:
– Jurisdictions are in line with the Code regarding most of Code’s provisions
– Approximately half of the jurisdictions surveyed specified more restrictive
provisions concerning taxation, valuation and internal audit services
mostly due to local laws and regulations
– Significant number of jurisdictions do not have emergency provisions for
bookkeeping or taxation services
– Re materiality, responses varied in terms of services to which materiality
may be applied, if at all
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IESBA Conclusions
• Code’s approach to, and provisions for, taxation, internal
audit and valuation services remain appropriate and will
not be part of project scope
• Code will benefit from and thus the scope of the project
will include:
– Clarification concerning “management responsibilities” and bookkeeping
services that are “routine and mechanical” for consistency in application
– Reconsideration of the emergency provisions for bookkeeping and
taxation services
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IESBA Conclusions
• IESBA also will develop a paper concerning NAS
– Used as communication vehicle to raise awareness of Code’s approach to
NAS
– Emphasize robustness of Code’s NAS provisions
– Highlight supplementary approaches to enhance “threats & safeguards”
approach
– Increase visibility and transparency of Code’s relevant provisions
– Discuss taxation, valuation and internal audit services
• IESBA to consider outline of paper next week
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Next Steps
• IESBA consideration of revised project proposal next week
• Proposed changes to the Code for approval for exposure
at April 2014 IESBA meeting
• First draft of NAS paper December 2013 IESBA meeting
• CAG discussion March 2014
• Final draft of the NAS paper for IESBA approval July 2014
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Questions?
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