1 / 11

IFAC Code of Ethics

IFAC Code of Ethics. Relevance to SMPs Abuja, Nigeria October 13, 2008. Prof. Dr. Jens Poll Deputy Chair IFAC SMP Committee Partner RöverBrönner & Moore Stephens Berlin, Germany. Proposed Revised Section 290/291. New Code of Ethics effective June 30, 2006

Jims
Télécharger la présentation

IFAC Code of Ethics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IFAC Code of Ethics Relevance to SMPs Abuja, Nigeria October 13, 2008 Prof. Dr. Jens Poll Deputy Chair IFAC SMP Committee Partner RöverBrönner & Moore Stephens Berlin, Germany

  2. Proposed Revised Section 290/291 • New Code of Ethics effective June 30, 2006 • Revision of Section 290 issued July 2006, effective December 31, 2008 (Network definition 290.14-290.26) • Revision of Section 290/291 (“Independence I”): Exposure Draft December 2006 (approved by the board in the unclarified version) • Revision of Section 290/291 (“Independence II”): Exposure Draft July 2007, Re-Exposure Draft May 2008 (board will decide on the December 2008 meeting of the board) • Revision of Code of Ethics (“Clarity”): Exposure Draft July 2008 (comment period October 15, 2008)

  3. Proposed Revised Section 290/291 • Public Interest • Improving the Code of Ethics to strengthen the independence • Wong Report identified concern as to relevancy and appropriateness of international standards of accounting, auditing and ethics to SMEs and SMPs • Overregulation for SMPs

  4. Proposed Revised Section 290/291 • Research • How best to serve the public interest in the revision of the Code • Applicability • Providing an optimal solution for larger firms and engagements • SMP input in to the drafting process

  5. Proposed Revised Section 290/291 • Conceptual Framework • Idea of principle-based Code • Cost-Benefit • Compliance costs • Public interest perspective • Differential approach (e.g. safeguards)

  6. Proposed Revised Section 290/291 • Some Concerns are picked up • Absolute prohibitions vs. safeguard approach • Stricter independence rules for Entities of Significant Public Interest

  7. Proposed Revised Section 290/291 • Timetable • High degree of urgency • Driven by regulators for large listed companies • Entities of Significant Public Interest (ESPI) • Fundamental differences between ESPI and other entities • But: The principles are relevant for all Audits and Auditors (independence in mind, independence in appearance)

  8. Proposed Revised Section 290/291 • Independence of Appearance and in Mind • Auditor must be independent in mind on all audits • Independence in appearance differ on the special circumstances; in a SME-environment fewer shareholders, more closely connected, direct access to the auditor • Identification of threats in a more direct way

  9. Proposed Revised Section 290/291 • Independence and Audit Quality • Clarification very much needed and welcomed • Specific Issues • Tax Services: Extension of differential rules • Mandatory Partner Rotation • Cooling-Off • Provision of Non-Assurance Services • Valuation Services

  10. Proposed Revised Section 290/291 • Specific Issues (contd.) • IT System Services • MDPs • Compensation and Evaluation Policies • Experts Definition • Network Definition • No further relevant changes to be expected • The clarified Code (including Independence I + II should become effective December 15, 2010)

  11. Thank You! • www.ifac.org/smp • Contact Details: • Jens Poll • j.poll@roeverbroenner.de

More Related