Don Thomson Task Force Chair IESBA Meeting New York USA June 2930July 1 2015 Enhance understandability Facilitate compliance and enforcement Improve usability Facilitate adoption effective implementation ID: 619986
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Slide1
Structure of the Code
Don Thomson, Task Force Chair
IESBA Meeting
New York, USA
June 29-30/July 1, 2015Slide2
Enhance
understandability
Facilitate compliance and enforcementImprove usabilityFacilitate adoption, effective implementation and consistent applicationDraft Restructured Code has been reviewed to take account of comments from last BoardEditor has reviewed the Draft Restructured Code
BackgroundSlide3
To:
U
pdate IESBA members on significant enhancements to the Draft Restructured CodeObtain input on the PrefaceDiscuss proposed adjustments to the Draft Restructured Code following advance comments from IESBA membersObjectivesSlide4
Post-IESBA April 2015 additional input consistent with CP
SMPC
Forum of FirmsNational Standard Setters IAASB liaison regarding responsibilityConsultationSlide5
“Core requirements” replaced by a single requirement in each section to apply the conceptual framework (CF)
Increased prominence of requirement to apply CF
Each page header has reminder to apply CF“Related application material” has been renamed “guidance”“R” and “G” to distinguish requirements and guidance
“Terms Used” paragraphs incorporated within “Scope”
Preface is being developed
Overview of changes since April 2015Slide6
Task Force is keeping a list of such matters
“Half Requirements”
Statements which are not phrased as “shall” statementsCurrently in guidance sections of Draft Restructured CodeShould they be retained in guidance?If so, should additional guidance be provided to facilitate the exercise of professional judgment?Matters for Board AttentionSlide7
Advance input helpful; TF has and will consider it
Clarity and other
wordsmithing offlineAreas of the extant Code that are not robust flaggedGlossary to be addressed in the next trancheMapping supplemented by concordanceProjects in progress (e.g. NOCLAR) not reflected in draftAdvance input receivedSlide8
Chance to fundamentally enhance user
experience
Components Preface, How to use this Code, Structure and ApplicationExplain PAIB, PAPP and AuditLink independence to objectivityClarify status of guidancePrefaceSlide9
(2-B) Linking Public Interest to Fundamental Principles(2-B) Fundamental Principles and Conceptual Framework
(2-D) Flow of materials
(2-D) Emphasizing the Conceptual Framework(2-F) Firm and Network FirmDraft Restructured Code – Input HighlightsSlide10
2015-September –
CAG
/ IESBA – draft ED 1 tranches I and II2015 – October – Forum of Firms – draft ED 1 tranches I and II2015 – December – IESBA – approve ED 1 tranches I and II2016 – June – IESBA
– approve ED 22017 – early
in the year –
finalize and issue new Code
2018 – January
–
Code
effective
2018
– Launch Electronic Code phase II
Forward timeline (tentative
) Slide11