1. Page 1 | Proprietary and Copyrighted Information Part C Jim Gaa, Chair Part C Task Force IESBA Meeting April 13, 2015 New York

2. Page 2 | Proprietary and Copyrighted Information Phase 1: Sections 320 and 370 –Full Review: June/July 2015 Meeting –First Read, Post-ED: December 2015 Meeting Phase 2: Section 350, Analysis of Section 260, and Applicability of Part C to PAPPs –Issues: June/July 2015 Meeting –First Read: December 2015 Meeting Overview of Part C project

3. Page 3 | Proprietary and Copyrighted Information Section 350 January 2015 Meeting feedback to TF –Analysis of Section 350 Including: Definition of Key Terms Link between Section 350 and proposed Sections 360 and 370

4. Page 4 | Proprietary and Copyrighted Information Title of Section 350 –Inducements – not “intuitive” –Search of electronic Code Include “gifts and “hospitality” in title Analysis of Section 350

5. Page 5 | Proprietary and Copyrighted Information Use of “Inducement” –Need a precise definition –Negative connotation? –Clear definitions to allow translation Analysis of Section 350

6. Page 6 | Proprietary and Copyrighted Information Association with Inducements –Inducements limited to Professional Accountant and Immediate or Close Family members –No mention of Colleagues –Association may include accounting for Inducements Analysis of Section 350

7. Page 7 | Proprietary and Copyrighted Information Public Interest –No reference to the Public Interest in Section 350 Analysis of Section 350

8. Page 8 | Proprietary and Copyrighted Information Threats –Self Interest threats – should be more extensive –Intimidation threats – should be more extensive –Advocacy threat – not addressed –Familiarity threat – not addressed Analysis of Section 350

9. Page 9 | Proprietary and Copyrighted Information Safeguards –Short discussion for soliciting and accepting inducements –None for offering and providing inducements Analysis of Section 350

10. Page 10 | Proprietary and Copyrighted Information Structure of Section 350 –Introductory paragraph indicating objective –Balanced discussion needed between Soliciting and receiving benefits Offering and providing benefits Analysis of Section 350

11. Page 11 | Proprietary and Copyrighted Information Awareness of Laws and Regulations –Focus of Section 350 on threats to compliance with fundamental principles –Reminder to abide by applicable Laws and Regulations –Reference to proposed Section 360 Violations that have occurred or may be about to occur Analysis of Section 350

12. Page 12 | Proprietary and Copyrighted Information Types of Inducements –Examples of acceptable and unacceptable types of Inducements –“Insignificant” – vague –Perception associated with Inducements Analysis of Section 350

13. Page 13 | Proprietary and Copyrighted Information Offering an Inducement –No real guidance on offering an Inducement –Majority of guidance in Section 350 relates to receipt of an Inducement –Factors to consider in offering an Inducement Analysis of Section 350

14. Page 14 | Proprietary and Copyrighted Information Guidance on inappropriate Inducements –Guidance on Safeguards –Basic consideration: whether a benefit would induce violation of fundamental principles –Intentions behind offering an Inducement Relevant to potential offeror and recipient Analysis of Section 350

15. Page 15 | Proprietary and Copyrighted Information Reference to Pressure –Reference to proposed Section 370 Colleagues –Accountable for the actions of Colleagues –Not expected to act as “policeman” Analysis of Section 350

16. The Ethics Board www.ethicsboard.org