Professional Skepticism Richard Fleck, Chair IESBA Meeting Athens, Greece June 18-20, 2018

PS Working Group members Richard Fleck, Chair Hiro Fukukawa Trish Mulvaney James Barbour

Objectives Status of Consulation Paper Status of Roundtables Released in mid-May, comment period through 15 August Status of Roundtables Two held, two to come Tokyo – July 12 Melbourne, Australia* – July 16 Supported by APESB and NZ XRB

Activities Since March 2018 Meeting CP approved by IESBA in April; released in May 2018 NSS meeting Forum of Firm meeting Two roundtables Washington DC and Paris APESB and NZ XRB offered to host additional roundtable in Australia

About Roundtables ½ day PS session Introduction: Stavros Thomadakis PS scene setting Washington DC: Trish Mulvaney Paris: Richard Fleck PS Breakout Sessions Washington DC: Chaired by Trish Mulvaney and Richard Fleck Paris: Chaired by Richard Fleck and James Barbour PS Report-back: Ken Siong and John Morrow

Options presented to Roundtable Groups Professional Skepticism Options presented to Roundtable Groups PS as currently defined in auditing standards PS re-defined Develop another term and definition Enhance guidance in the Code Address role of bias, pressure and other impediments Choosing Options 1, 2 or 3 would not preclude also doing Options 4 and/or 5

Observations so far (sans Tokyo and Melbourne) No support for options 1 and 2 Push back/concern on “PS” with amended definition Support for a new term Liked what the new term would encompass (paragraph 10 of CP) Support for options 4 and 5 Endorsed the direction of travel!

Preliminary thoughts on Options forward Work on a new term and definition with associated application material Overarching statement of expectation on what it means to be a PA Public interest; impartial and diligent mindset Scalability Develop “bias” Amalgam of A+B

Important consideration New term needs to drive behavior rather than just be words.

Questions?

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