Submission on Proposed Amendments to the Code Relating to the Definition of Engagement Team and Group Audits
A submission in support of alignment between the International Code of Ethics and APES 110 Code of Ethics for Professional Accountants (Including Independence Standards)
In brief
- CA ANZ supports consistency between international and domestic Standards
- CA ANZ reiterates concerns raised to the IESBA regarding impacts on SMP component auditors
- CA ANZ calls for resources from standard setters to aid members in implementing the changes
In response to recent changes to issued by the IESBA (International Ethics Standards Board), the Accounting Professional and Ethical Standards Board (APESB) called for submissions on exposure draft (ED) Proposed Revisions to APES 110 Code of Ethics for Professional Accountants (including Independence Standards) Relating to the Definition of Engagement Team and Group Audits.
CA ANZ supports consistency between International and Domestic Standards and generally agrees with the proposed changes which relate to the revised definition of ‘engagement team’ given that this aligns the Code with ASA 220 (Revised) and ASQM1, ensuring consistency between the Code and Australian Auditing Standards.
CA ANZ has re-iterated its concerns regarding the unintended consequences that may result for SMP component auditors and has again called for consideration of the costs and benefits of such consequences. Given the proposed operative date of the Revised Standard, CA ANZ has highlighted the importance of resources, such as Staff Q&As, to assist with implementation.
