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

2. 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)

3. 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

4. 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

5. 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

6. 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

7. 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

8. Questions?