1. IESBA Meeting New York September 17-20, 2018
Strategy & Work Plan
Stavros Thomadakis, IESBA Chairman
Ken Siong, Senior Technical Director
IESBA Meeting
New York
September 17-20, 2018

2. Future IESBA Strategy and Work Plan
Consultation paper released April 2018
40 responses from regulators, NSS, firms, IFAC MBs and others
Responses from MG members IOSCO and IFIAR
Positive sense of wide acceptance of
proposals, including strategic themes
Advancing the Code’s relevance and impact
Deepening and expanding the Code’s influence
Expanding IESBA’s perspectives and inputs

3. Explicit Support for IESBA’s Vision for the Code
A foundation of strong ethical principles, values and standards to underpin trust in the global accountancy profession in a dynamic and uncertain world, and to enable the profession to act in the public interest.

4. Global Acceptance & Impact
Diverse views on how to increase the Code’s
global acceptance and impact
A MG member: “Intensify efforts on enhancing quality
of the Code”
Another respondent: “Focus more on issuing timely,
relevant and useful implementation guidance”
Illustrates challenge of addressing stakeholders’ differing views but also importance of:
Diversity of perspectives in enriching IESBA’s deliberations
IESBA seeking elements of balance in setting strategic direction

5. Overarching Themes from Responses
Focus on speed/timeliness of standard setting
Provide a period of stability for the Code
Consider unique circumstances of SMEs/SMPs
Dedicate particular focus on adoption and implementation
Maintain strategic focus on stakeholder engagement and cooperation
Strengthen collaboration and cooperation with IAASB

6. Planning Committee Reflections
Key elements of balance to be sought:
Prioritization of individual actions given finite resources
Balance of effort between standard setting and support
for implementation (within our mandate)
Frequency of change vs. period of stability
Timeliness vs. due process & project definition
Approach to internal work stream coordination given pervasiveness of technological developments
Level of strategic and technical SSB coordination while preserving SSB independence

7. Perspectives from Sept 2018 CAG – General
How to ensure IESBA Code reaches right audience?
“Many of issues PIOB concerned about
getting the sunlight”
What would success look like in 5 years’ time?
What are expected outputs of projects?
How to address new issues and technology?
Interpretations? New guidance? New training material?
Role of IESBA vs. IAESB

8. Matter for IESBA Consideration
Views on overarching themes from responses and PC reflections?

9. Criteria Determining Actions & Priorities
Broadly supported:
Benefits to public interest
Pervasiveness of the matter
Degree of urgency
Global relevance of the matter
Feasibility within realistic timeframe
Last criterion truly valid?
Some other criteria suggested
PC view that most not appropriate

10. Proposed Actions and Priorities
Broad support for identified strategic priorities
Pre-commitments: Professional Skepticism │ NAS │ Fees │ E-Code
Pervasive strategic subject: Technology (and service delivery models) – impact on Code
Additional top priorities:
Definition of PIE and listed entity │ Tax planning and related services │ Materiality
Post-implementation reviews: NOCLAR │ Long Association │ Revised and Restructured Code

11. Technology and Service Delivery Models
Key Points for Consideration
Technology and Service Delivery Models
FPs provide sound basis for assessing
relevant ethical issues
Issue timely non-authoritative guidance
Consider impact of technology trends on
other work streams
Don’t pursue infinite lines of study but
focus on 2-3 emerging issues each year
Suggestions for specific matters or questions to consider

12. Perspectives from Sept 2018 CAG Meeting
Technology and Service Delivery Models
Perspectives from Sept 2018 CAG Meeting
Clear priority but take risk-based approach?
Old dilemmas in new wrapping?
Opportunity for IESBA foresight and strategic leadership

13. Definition of PIE and Listed Entity
Key Points for Consideration
Definition of PIE and Listed Entity
A MG member view that IESBA definition presumes most countries have capacity to set own definition
Concern about IESBA’s baseline definition leading to significant variation in practice
Consider interaction with NAS work stream
Definition of listed entity warrants clarification
Concept of “recognized” vs. “regulated” market

14. Perspectives from Sept 2018 CAG Meeting
Definition of PIE and Listed Entity
Perspectives from Sept 2018 CAG Meeting
Approach definition of PIE from a different angle?
From perspective of users’ motivations?
Consider outreach to IASB
Any useful insights from development of IFRS for SMEs?

15. Tax Planning and Related Services
Key Points for Consideration
Tax Planning and Related Services
Beware complexity of topic and variances in tax regulations around the world
Only principles-based approach workable?
Take measured and cautious approach
Assess work done by others in this area
Collaborate with others to leverage experiences and perspectives

16. Perspectives from Sept 2018 CAG Meeting
Tax Planning and Related Services
Perspectives from Sept 2018 CAG Meeting
Can a distinction be made between tax
planning and tax avoidance?
Engage in dialogue with appropriate policy- making bodies, including those in EU
Much OECD work done in this area
Revenue mobilization and base erosion huge problem in many countries

17. Key Points for Consideration
Materiality
Support for guidance to facilitate consistent application
Use right term in right place?
E.g., “Materiality” vs. “significance”
Address de minimis exceptions
Specific suggestions from a MG member to eliminate materiality exception in context of:
Loan or guarantee to an audit client
Business relationships with an audit client

18. Perspectives from Sept 2018 CAG Meeting
Materiality
Perspectives from Sept 2018 CAG Meeting
More guidance highly desirable
Beware translation pitfalls when considering different terminology
Consider relevant aspects in new project recently added to U.S. SEC agenda
Re loans to affiliates

19. Other Proposed Topics in CP
Less support for prioritizing topic of communication with TCWG
Consider other ways to raise profiles of roles of auditor and TCWG
Also can address specifics via NAS work stream
Generally weak support for prioritizing topic of documentation

20. Perspectives from Sept 2018 CAG Meeting
Tax Planning and Related Services
Perspectives from Sept 2018 CAG Meeting
Consider public interest risk vs. likely impact on behavior when determining project prioritization and sequencing?

21. Perspectives from IFAC SMP Committee
No perceived inherent conflicts
Re more timely outputs vs greater stakeholder consultation; more implementation support vs greater responsiveness on standard setting
Support for considering elements of EU SME test
Support for advisory groups on technology and
for focus on 2-3 specific topics each year
Support for cautious approach re tax planning

22. Matters for IESBA Consideration
Views on :
Respondents’ comments on proposed strategic priorities?
PC responses?

23. Suggested Topics from Respondents
Various suggestions but in particular:
Meaning of public interest in global context
Definition of term “professional activity”
Practical issues in applying independence standards in group audits
Culture of firm secrecy and transparency

24. Matter for IESBA Consideration
Views on other topics suggested by respondents?

25. Next Steps Timing Action Sep 2018
Joint IAASB-IESBA session on future SWPs
Dec 2018
Final IESBA approval of SWP
Mar 2019
PIOB consideration and approval
Apr 2019
New SWP published

26. The Ethics Board