International Federation of Accountants International Ethics Standards Board for Accountants Ken Dakdduk, IESBA Chair Ethics CAG Meeting Barcelona, Spain March 3, 2010

2010-2012 Strategy and Work Plan

• Activities deferred in 2008-2009 – Conflicts of interest – Fraud and illegal acts • • • New project – Independence – Related parties collective investment vehicles Adoption and implementation Convergence

Conflicts of Interest

• • • Definition of conflict of interest Examples of conflicts Conflict identification, evaluation and management • Timing 2010-2012

Responding to Suspected Fraud and Illegal Acts

• Challenging project – Legislative and cultural differences – Interim consultation • When to disclose confidential information when not required by law • Nature of items to be addressed, threshold for taking action, process for responding • Timing 2010-2014

Collective Investment Vehicles

• Related entity definition based on control and significant influence • Does not work well for collective investment funds, including mutual funds • Timing 2011-2014

Implementation and Adoption

• • Some material developed in 2009 Continue to assess what additional material might be useful • Work closely with – Compliance Advisory Panel – SMP Committee – Developing Nations Committee

Convergence Challenges

• • • Structure/format of Code – Visibility of independence prohibitions • Understanding the conceptual framework approach Inadvertent violations Other

Convergence Initiatives

• • • Develop a “visual” Extensive program of consultation with regulators and standard setters – Perspectives on convergence – How Code can be catalyst to achieve convergence Seeking input on – Using Code as benchmark for foreign auditors – Improvements that may be necessary for Code to gain greater acceptance

2010 Activities

• • • Standard setting – Two projects to begin in 2010 – Seconded staffing from AICPA for no fee • Cover out of pocket expenses only Adoption and Implementation – Will increase over 2009 Convergence – Will significantly increase over past years – Build on strong base established by the Code