Proposed Revisions to Code of Ethics
The International Ethics Standards Board for Accountants (IESBA) has released proposed changes to the definition of "engagement team" in the IESBA Code of Ethics for Professional Accountants (the Code) to avoid any perceived incompatibility between the Code and the International Standards on Auditing (ISAs).
The proposals address comments received by the International Auditing and Assurance Standards Board (IAASB) on its Exposure Draft (ED) on ISA 610 Using the Work of Internal Auditors. A number of respondents to that ED pointed out the perceived inconsistency between the independence requirements for external auditors under the Code and the use of internal auditors to perform external audit procedures. The proposed IESBA changes clarify that individuals in an internal audit function providing direct assistance to auditors do not meet the definition of the engagement team under the Code.