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Changes will be effective April 15, 2016, with early adoption permitted.
“Auditor independence is foundational to public trust in the external audit,” said IESBA Chairman Dr. Stavros Thomadakis. “These enhancements will not only further reinforce independence but also promote greater consistency of application of the Code’s provisions in the 100-plus jurisdictions around the world where the Code is currently in use.”
The revisions include the removal of provisions that permitted an audit firm to provide certain bookkeeping and taxation services to PIE audit clients in emergency situations, as these were susceptible to being interpreted too generally. In addition, the revised provisions include:
The revisions also include corresponding changes to the Code’s non-assurance services provisions with respect to other assurance clients.
“These changes focus on a few select, but important, areas of the Code. Nonetheless, the board continues to explore other areas where there may be a need for further enhancement,” noted IESBA Technical Director Ken Siong. “In this regard, the board has recently launched a new project that will review the clarity, appropriateness, and effectiveness of the safeguards against threats to auditor independence in the Code, particularly as these relate to the provision of non-assurance services to audit clients.”