Structure of the Code Don Thomson, Task Force Chair IESBA Meeting Madrid, Spain March 14 – 16, 2016

Looking Back Impetus for project was input from various stakeholders Structure of the Code Looking Back Impetus for project was input from various stakeholders Understandability, application of principles, enforceability Extensive research and outreach 32 interviews – regulators, standards-setters, member bodies Meetings – CAG (6), IOSCO (2), National Standards-setters (3), Forum of Firms, SMP Committee, large firms, ongoing outreach Consultation Paper – additional input and validation Broad-based support for change and Task Force proposals

What the Restructuring Delivers Structure of the Code What the Restructuring Delivers Enhanced understandability, improved usability Serving the public interest, responsive to stakeholders Requirements distinguished from application material Increased prominence of principles and the conceptual framework Increased clarity of responsibility IAASB ISQC 1 Task Force considering further clarification Increased clarity of language and improved navigability

Other Features of Restructuring Structure of the Code Other Features of Restructuring New title to emphasize key features Guide to the Code More self-contained sections Careful to avoid inadvertent changes in meaning Careful to avoid any weakening of the Code Various matters outside scope noted for Board attention

Where we are today 1 comment received on Structure ED-1 – more awaited Structure of the Code Where we are today 1 comment received on Structure ED-1 – more awaited Completing restructuring of the entire Code, with much done by other TFs with Structure TF direction and oversight Drafting Guidelines facilitate a consistent approach This second phase of restructuring will involve two EDs Safeguards ED-2 combining new proposals and restructuring of safeguards material Structure ED-2 presenting all other restructuring proposals

Sections 800 - Advance Input Structure of the Code Sections 800 - Advance Input Advance input received in December Consider additional narrative when cross-referencing December proposals retained for precision Introduced term “qualifying restricted use report” Advance input received in March Remove repetition between 800.1 and 800.6 Various helpful wordsmithing suggestions

Looking forward For June Structure of the Code Looking forward For June Analyze comments received in response to Structure ED-1 Present Structure TF proposals arising from that input Present draft Section 900 (extant 291) – awaiting IAASB input Continue to work with the other task forces to achieve our restructuring objectives and finalize a restructured Code Exposure of Phase 2 restructured material Finalization of Phase 1 restructured material