FAQs on Revised Fee-related Provisions of IESBA Code

09 February 2022
Accounting
South African Accounting Academy

The publication is designed to highlight, illustrate or explain aspects of the revised fee-related provisions in the Code and thereby assist in their proper application. It is intended to complement the Basis for Conclusions for the final standard and assist national standards setters, professional accountancy organizations, and professional accountants in public practice (including firms) as they adopt and/or implement the revised provisions. The publication is also intended to assist regulators and audit oversight bodies, the corporate governance community, investors, preparers, educational bodies or institutions, and other stakeholders in understanding the revised standard and its application.

The FAQs have been informed by the extensive discussions and consultations with a wide range of stakeholder groups and the IESBA’s own deliberations during the development and finalization of the standard.

The revised standard addresses a number of topics, including threats to independence created by fees paid by an audit client (including fees for services other than audit), fee dependency, and transparency of fee-related information to those charged with governance and to the public from an auditor independence perspective in the case of public interest entities.

Read the provisions here.

The revised standard becomes effective for audits of financial statements for periods beginning on or after 15 December 2022.

Click here to download the FAQ document:

https://www.ifac.org/system/files/publications/files/IESBA-Staff-Questions-and-Answers-Revised-Fee-related-Provisions-of-the-Code_0.pdf

How does this affect you?

Relevance to Auditors, Independent Reviewers & Accountants:

Auditors and accountants have to adhere to the IESBA Code of Conduct.
This publication provides clarity on some issues flowing forth from the recently Revised IESBA Code, and will assist with proper application of the ethical principles.

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