Transcript IESBA Strategy Survey 2014-2016 Ken Siong, IESBA Technical Director IESBA CAG Meeting April 10, 2013 New York Page 1 | Confidential and Proprietary Information.

IESBA Strategy Survey
2014-2016
Ken Siong, IESBA Technical
Director
IESBA CAG Meeting
April 10, 2013
New York
Page 1 | Confidential and Proprietary Information
Overview of Responses
• Survey distributed electronically to 700+ stakeholder
contacts – 115 responses were received
Respondents by Perspective
Regulators &
Oversight
Bodies
7%
Other
36%
IFAC Member
Body
28%
Professional
Accountant
29%
Page 2 | Confidential and Proprietary Information
Overview of Responses
Stakeholder Group
Regulators and audit oversight bodies
# Responses
Percentage
8
7%
Users of financial statements
12
10%
Standard setters
12
10%
Academia
4
4%
Professional accountants in business
4
4%
Professional accountants in government
2
2%
Professional accountants in public practice
27
24%
Representative of an IFAC member body
32
28%
Other
14
11%
Total
115
100%
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Possible Projects
• Most frequently identified issues relate to:
– Smaller enterprises, SMPs and non-public entities
– Relationships, including independence requirements for component
auditors, and ethical requirements for entities that are not audit clients but
parents or subsidiaries of audit clients
• Other commonly recurring themes include:
– Focus on learning, application material, adoption and implementation
– Stable platform
– Summary of requirements
– Ethical issues pertaining to PAIBs
– Further emphasis on outreach
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Possible Projects – Regulators and Oversight Bodies
• Remediation
• Enforceability of the Code
• Ethical requirements for joint auditors
• Ethical requirements relative to non-audit clients that are
parents or subsidiaries of audit clients
• Auditors’ cooperation with financial markets regulators
• How to improve compliance through education and
training
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Relative Prioritizations of Identified Items – Top 5
#
Project or Initiative
% Ranking as Important /
Very Important
1.
Structure of the Code
76%
2.
Guidance for PAs in public practice
providing non-assurance services
74%
3.
Guidance on meaning of the public
interest
74%
4.
Linkage between ISAs and the Code
73%
5.
Preparation of accounting records and
financial statements for an audit client
63%
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Relative Prioritizations of Identified Items – Others
#
Project or Initiative
% Ranking as Important /
Very Important
6.
Disclosure of compliance with ethical
requirements in auditors’ reports
59%
7.
Guidance on reasonable and
informed third-party test
58%
8.
Guidance on objectivity when
independence is not required
54%
9.
Independence requirements for PAs
not in public practice who perform
assurance engagements
51%
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Adoption and Implementation – Most Common Ideas
• Development of application and implementation resources
• Improving the content of the Code
• Understand and address issues relevant to SMEs/SMPs
• Enhance communication initiatives, including:
– Thought leadership
– Roundtables
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Adoption and Implementation – Other Ideas
• Work with academic community to undertake research
• Liaise with academics to add accounting material to
curricula
• Work with the IFAC Advisory Compliance Panel
• Implement support structures for non-English speaking
• Simplify standard-setting process
• Institute a stable platform to allow IFAC member bodies
and firms time to implement the Code
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Convergence – Various Suggestions
• Place additional emphasis on more countries adopting the Code
• Perform analysis of reasons for differences between the Code
and national requirements
• Analyze efforts of IFAC member bodies to implement the Code
• Better coordination between the IESBA and IAASB
• Coordinate with INTOSAI
• Scope Sections 290 and 291 out of the independence
requirements to facilitate convergence
• Develop clear guidance on meaning of convergence and it
would take to achieve it
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Forward Timeline
• NSS discussion May 2013
• IESBA consideration of survey input and draft consultation
paper June 2013
• CAG discussion September 2013
• IESBA approval final strategy December 2013
Page 11 | Confidential and Proprietary Information