IESBA Strategy and Work Plan Ken Siong IESBA
IESBA Strategy and Work Plan Ken Siong, IESBA Technical Director IESBA Meeting June 10 -12, 2013 New York Page 1 | Confidential and Proprietary Information
General Context • Two of three standard-setting projects on 2011 -2012 Strategy and Work Plan (SWP) recently completed: – Breach of a requirement of the Code – Conflicts of interest • Third project likely to continue into 2014 – Responding to a Suspected Illegal Act • Strategy review in early 2012 Page 2 | Confidential and Proprietary Information
General Context • Four new work streams added to current SWP in 2012: – Long association of senior personnel with an audit client – Non-assurance services – Structure of the Code – Part C of the Code • Board expected to operate to capacity until end of 2014 • Preliminary Planning Committee recommendation for deferral of approval of next SWP until Q 4 2014 to cover period 2015 -2017 Page 3 | Confidential and Proprietary Information
Development of Next Strategy and Work Plan • Strategy survey released January 2013 – 115 responses received • Detailed comment letter from IOSCO • Agenda Item 6 -A: – Summary of input from survey and from IOSCO – Preliminary analyses and recommendations from Planning Committee Page 4 | Confidential and Proprietary Information
May 2013 IESBA-NSS Meeting – Key Comments • Keep stable platform and promote Code’s robustness • Prioritize Code structure work first before other changes – Do not underestimate amount of work involved in restructuring • Important for the standards to be principles-based – Too many examples discourage thinking about the principles • Some support for idea of “annual improvements” project • Need for greater clarity on initial PC recommendations re: – Additional guidance for PAs in public practice providing NAS – Fee dependency Page 5 | Confidential and Proprietary Information
June 2013 Teleconference with IOSCO C 1 • Comment letter brings together matters identified over a number of years • Opportunity seen to look at the Code more holistically • Some C 1 suggestions viewed as more important and extensive than others – More important matters set out more upfront in comment letter – Some items seen as needing shorter timeframes than others • Lowest common denominator perception Page 6 | Confidential and Proprietary Information
IOSCO C 1 – Key Concerns • Need for a fresh review of effectiveness of safeguards in the Code • Enforceability of the Code – Lack of precision in requirements – Need for an IAASB-type clarity format • Definition of a public interest entity – A number of jurisdictions not going beyond IESBA definition – Definition of “public interest” seen as important relative to enforceability Page 7 | Confidential and Proprietary Information
Key Considerations • Important to make final determinations based on what would best serve the public interest • Capacity for at most four new standard-setting projects or initiatives • Key assumptions: – Four board meetings a year, three days each – Staff complement of three – Adherence to current due process, including minimum 90 -day exposure period for proposed changes to the Code – Each project to need a minimum of two years to complete Page 8 | Confidential and Proprietary Information
Key Considerations • Comments from some respondents to survey: – Establish a period of stability to facilitate implementation of 2009 Code – Focus on outreach and promote robustness of the Code – Understand address implementation support needs of SMPs/SMEs – Understand extent of adoption of the Code internationally and reasons for any differences • Need for flexibility to respond to emerging issues • Review strategic priorities at least annually? Page 9 | Confidential and Proprietary Information
Forward Timeline • CAG discussion September 2013 • IESBA consideration of CAG input and revised Planning Committee proposals September 2013 • IESBA approval of SWP exposure draft December 2013 • NSS consideration of ED responses May 2014 • IESBA consideration of ED responses July 2014 • CAG consideration of revised draft SWP September 2014 • IESBA approval of SWP October 2014 Page 10 | Confidential and Proprietary Information
Matters for Consideration 1. Views on Planning Committee recommendations: a) Areas worth considering b) Areas not worth considering c) Areas noted for further analysis or research 2. Views on level of priority re areas worth considering 3. Views on merits of an “annual improvements”-type project 4. Views on other Planning Committee recommendations – Continue focus on implementation support needs of SMPs – Seek greater understanding of extent of adoption of the Code Page 11 | Confidential and Proprietary Information
- Slides: 11