Revisions to IRBA Code of Conduct

20 August 2021
Auditing and Assurance
South African Accounting Academy

The IRBA adopted the amendments made to the International Ethics Standards Board for Accountants' (IESBA) Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), issued during 2021, following the issue of proposed amendments on exposure for public comment via Government Gazette No 43015 in South Africa on 14 February 2020 (Board Notice 9 of 2020).

Changes in Substance:

The revisions provide guidance that supports ISQM 21 in addressing the eligibility of an individual to serve in an EQR role, focusing on the critical attribute of objectivity. Among other matters, the guidance:

Elaborates on the need to identify, evaluate, and address threats to compliance with the fundamental principle of objectivity that might arise in the appointment of an individual as an EQR for a given engagement;
Explicitly refers to and supports the requirement in ISQM 2 for a firm to establish, as a condition for eligibility, a cooling-off period of two years before an engagement partner can assume the EQR role on the same engagement; and
Emphasises that this cooling-off requirement in ISQM 2 serves the dual objective of supporting compliance with the fundamental principle of objectivity and the high quality of engagements.

The guidance may also apply in situations where, as a safeguard to address identified threats to compliance with the fundamental ethics principles, an individual is appointed as an appropriate reviewer for work performed.

These revisions will become effective on the following dates:

Part 4A: audits and reviews of financial statements for periods beginning on or after 15 December 2022.
Part 4B: assurance engagements beginning on or after 15 December 202
For all other engagements within the scope of Part 3: engagements beginning on or after 15 December 2022.

Early adoption will be permitted.

Click here to download the Revisions to the IRBA Code:

https://www.irba.co.za/upload/58_%20Revisions%20to%20the%20Code%20Addressing%20the%20Objectivity%20of%20an%20Engagement%20Quality%20Reviewer%20and%20Other%20Appropriate%20Reviewers.pdf

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