Presentation by Ken Siong, IESBA Technical Director, for American Accounting Association, International Accounting Section, Midyear Meeting, February 19, 2016 in New Orleans, LA, USA

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IESBA Update
Ken Siong, IESBA Technical Director
American Accounting Association,
International Accounting Section,
Midyear Meeting
New Orleans, February 19, 2016

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Committed to adopt (1)
India
Converging (4)
Canada
Indonesia
Germany
USA (unlisted entities)
Adopted/Based on (12)
Australia South Africa
Brazil Saudi Arabia
China South Korea
Italy Mexico
Japan Turkey
Russia UK
• Adopted or converged, or used as basis for national ethical
requirements in 120+ countries
• G-20 countries:
Global Adoption of IESBA Code

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• Importance of evidence-based standard setting recognized
in Strategy and Work Plan
• Role of academic community
• Lead time needed for research
• IESBA commitment to explore closer links with the
academic community
IESBA Strategy and Work Plan 2014-2018

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IESBA – Current Priority Projects
• Responding to non-compliance with laws and regulations
– Re-ED issued May 2015; new response framework proposed
– Anticipated finalization Q2 2016
• Improving structure of IESBA Code
– Enhancing usability to facilitate adoption and implementation
– ED Phase 1 issued Dec 2015
• Review of safeguards in the Code
– Clarity, appropriateness and effectiveness of safeguards
– ED Phase 1 issued Dec 2015
• Long association (partner rotation)
– Re-ED issued Feb 2016; anticipated finalization Q3 2016

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• Independence and ethics issues re fees paid to auditors
– Level of audit fees for particular audit engagements (downward
pressure)
– Fee dependency (partner and firm levels)
– Ratio of non-audit services fees to audit fees (client and firm levels)
• NOCLAR – post-implementation review
– Auditors and other professional accountants in public practice
– PAIBs
• Mandatory audit firm rotation
• Collective investment vehicles
Research Topics Relevant to IESBA’s Future Work

6. www.ethicsboard.org
The Ethics Board