IESBA CAG Meeting New York March 6, 2017 IESBA Future Strategy Richard Fleck, IESBA Deputy Chair Ken Siong, Technical Director IESBA CAG Meeting New York March 6, 2017

Background Major public interest priorities in SWP 2014-2018 Address PAs’ responsibilities re NOCLAR… Increase understandability/accessibility of the Code… Increase robustness of the Code re safeguards… Strengthen provisions addressing long association… Address most pressing issues PAIBs face… Restructured Code with many substantive improvements coming soon On track towards fulfilling other SWP 2014-2018 commitments

Preliminary IESBA Discussion Dec 2016 Wide range of topics considered for strategy survey Matters identified from Structure and other projects Matters raised by stakeholders Matters raised during previous strategy consultation Detailed PC assessment using various criteria, e.g. Topic has strong public interest and global relevance Issues capable of being adequately defined and scoped Standard setting on topic would be impactful from cost-benefit perspective Degree of urgency

Future Strategy and Work Plan Towards 2025 Vision for IESBA Code at the quarter century? Already a number of major known commitments Professional skepticism Fees NAS Collective investment vehicles NOCLAR and Long Association post-implementation reviews E-Code

Position the Code for Rapidly Evolving World Disruptions from technology and innovation (e.g. Data analytics, AI, social networks, cloud computing) Aggressive tax avoidance, (e.g. ethics of “gray area” tax minimization strategies?) Emerging or newer models of service delivery (e.g. managed or outsourced services) Meaning of “global public interest”?

Further Raise the Code’s Robustness Enhancements to PIE and listed entity definitions? Further guidance on materiality, e.g. when evaluating financial interests? A holistic framework for communication with TCWG? Clarifications to provisions addressing breaches of the Code? More robust and streamlined approach to documentation? Better alignment of definitions and descriptions of key terms with ISAs?

Way Forward March 2017: Issue survey – Input sought from all CAG members Sept 2017: CAG discussion survey responses Sept 2017: IESBA review survey responses March 2018: Approval SWP consultation paper Dec 2018: Approval new SWP Moratorium on new changes after restructured Code becomes effective?

Matters for CAG Consideration Any stakeholder groups or particular organizations from which to seek input (in addition to those already identified)? Views on proposed content of survey?