Submission on Proposed Quality Management Conforming Amendments to APES 110 Code of Ethics
A submission on Proposed conforming amendments to the Code from changes to Quality Management Standards.
In brief
- CA ANZ is supportive of the proposed amendments to the Code of Ethics for Professional Accountants (including Independence Standards) resulting from recent changes to quality management standards.
- CA ANZ supports alignment between domestic and international standards and further supports alignment between standards issued by local standard setters.
- We highlight that the divergence which now exists for assurance and non-assurance firms will increase complexity, particularly for SME firms offering both assurance and non-assurance services.
In response to recent changes to international and domestic quality management standards issued by the IAASB and AUASB, the Accounting Professional and Ethical Standards Board (APESB) has issued the revised APES 320 – Quality Management for Firms that Provide Non-Assurance Services.
The revised standards issued by both the APESB and AUASB have created the need for conforming amendments to APES 110 – Code of Ethics for Professional Accountants (including Independence Standards).
CA ANZ supports alignment between domestic and international standards. Further, we support alignment between standards and consequently, conforming amendments where required.
CA ANZ acknowledges that the divergence of quality management standards for assurance and non-assurance firms adds a degree of complexity to the design of members’ system of quality management, particularly for those operating in both the assurance and non-assurance environment. To provide clarity, we recommend that references to APES 320 and ASQM 1 in the Code be clear with reference to either assurance or non-assurance services.
