NZAuASB Update #2
|This NZAuASB Update provides you with an overview of the New Zealand Auditing and Assurance Standards Board’s recent activities, any new standards or interpretations, as well as other matters of interest.|
New international Code of Ethics issued
The International Ethics Standards Board for Accountants (IESBA) has released its completely rewritten Code of Ethics for Professional Accountants (the Code) that is easier to navigate, use and enforce.
Beyond the new structure, the Code brings together key ethics advances over the past four years, and is clearer about how accountants should deal with ethics and independence issues.
While the fundamental principles of ethics have not changed, major revisions have been made to the unifying conceptual framework – the approach used by all professional accountants to identify, evaluate and address threats to compliance with the fundamental principles and, where applicable, independence.
New Code highlights include:
- Revised “safeguards” provisions better aligned to threats to compliance with the fundamental principles;
- Stronger independence provisions regarding long association of personnel with audit clients;
- New and revised sections dedicated to professional accountants in business (PAIBs) relating to preparing and presenting information and pressure to breach the fundamental principles;
- Clear guidance for accountants in public practice that relevant PAIB provisions are applicable to them;
- New guidance to emphasise the importance of understanding facts and circumstances when exercising professional judgement; and
- New guidance to explain how compliance with the fundamental principles support the exercise of professional judgement.
The NZAuASB is responsible for developing and issuing professional and ethical standards for assurance practitioners, and is considering the changes that need to be made to the new rewritten International Code as it applies to assurance practitioners in New Zealand.
The Board expects to issue an exposure draft of a revised Professional and Ethical Standard 1, Code of Ethics for Assurance Practitioners, mid-year for public consultation.
This NZAuASB Update is intended to provide subscribers with a summary of the recent activities of the New Zealand Auditing and Assurance Standards Board (NZAuASB). Links to websites are correct at the time of publication. Subscribers should not rely on this newsletter as a definitive publication of updates. The External Reporting Board and its sub-Board the NZAuASB do not guarantee, and accept no legal liability whatsoever arising from or connected to, the accuracy, reliability, currency, timeliness or completeness of this newsletter. The information contained in this newsletter does not constitute advice and should not be relied upon as such.