Non-Assurance Services Isabelle Sapet, IESBA Deputy Chair IESBA CAG Meeting September 11, 2013 New York

Non-assurance services (NAS) work stream added to work plan in 2012 Background Non-assurance services (NAS) work stream added to work plan in 2012 Consider additional restrictions concerning NAS Determine if materiality is still appropriate as a basis for prohibiting certain NAS and if guidance is necessary to apply it Consider if preapproval of NAS by those charged with governance (TCWG) is appropriate General Board agreement to objective of project but with some concern as to scope given the recent independence projects (Independence I & II)

Non-Assurance Surveys Surveys requesting information sent to 26 jurisdictions Information sought with respect to PIEs and non-PIEs National provisions concerning NAS that are not addressed in the Code Survey also covered five key areas: Assuming management responsibility Preparing accounting records and financial statements Valuation services Taxation services Internal audit services

Results noted the following: Survey Responses Results noted the following: Jurisdictions are in line with the Code regarding most of Code’s provisions Approximately half of the jurisdictions surveyed specified more restrictive provisions concerning taxation, valuation and internal audit services mostly due to local laws and regulations Significant number of jurisdictions do not have emergency provisions for bookkeeping or taxation services Re materiality, responses varied in terms of services to which materiality may be applied, if at all

Code will benefit from and thus the scope of the project will include: IESBA Conclusions Code’s approach to, and provisions for, taxation, internal audit and valuation services remain appropriate and will not be part of project scope Code will benefit from and thus the scope of the project will include: Clarification concerning “management responsibilities” and bookkeeping services that are “routine and mechanical” for consistency in application Reconsideration of the emergency provisions for bookkeeping and taxation services

IESBA also will develop a paper concerning NAS IESBA Conclusions IESBA also will develop a paper concerning NAS Used as communication vehicle to raise awareness of Code’s approach to NAS Emphasize robustness of Code’s NAS provisions Highlight supplementary approaches to enhance “threats & safeguards” approach Increase visibility and transparency of Code’s relevant provisions Discuss taxation, valuation and internal audit services IESBA to consider outline of paper next week

Next Steps IESBA consideration of revised project proposal next week Proposed changes to the Code for approval for exposure at April 2014 IESBA meeting First draft of NAS paper December 2013 IESBA meeting CAG discussion March 2014 Final draft of the NAS paper for IESBA approval July 2014

Questions?