IESBA Meeting New York September 19-22, 2017 IESBA Future Strategy Stavros Thomadakis, IESBA Chairman Ken Siong, Technical Director IESBA Meeting New York September 19-22, 2017

Background Strategy survey released Apr 2017 Distributed widely – over 130 responses Initial Planning Committee (PC) review and analysis Seeking Board input to further inform PC deliberations re draft consultation paper (CP) Identify 5-6 topics or focus areas re standard setting CAG input received Sept 2017

Background PC to apply “strategic lenses” and other criteria in developing recommendations for CP, e.g. Degree of emphasis on particular strategic themes? Need for stocktaking with release of restructured Code? Need for timeliness in addressing pressing issues? Capacity and resources?

Background Consider implications of any decision to coordinate IESBA and IAASB SWPs Working assumptions: Current resource levels and governance/structure arrangements are given as under present conditions

Overview of Survey Responses Others 10% Academia 3% NSS 3% PAPPs 46% IFAC MBs 13%

Section B – Respondents’ Top-6 Priorities Strong Support Trends and developments in technology and innovation Emerging or newer models of service delivery Tax planning and related services

Section B – Respondents’ Top-6 Priorities Significant Support Materiality Definitions of “public interest entity” and “listed entity”

Less Significant Support Section B – Respondents’ Top-6 Priorities Less Significant Support Breach of the Code Meaning of “public interest” Documentation Post-implementation review of restructured Code Communication with TCWG

Relatively Weak Support Section B – Respondents’ Top-6 Priorities Relatively Weak Support Definitions and descriptions of terms Collective investment vehicles Familiarity threat in relation to extant Part C

CAG Views on Top 6 Priorities # Topic # Support B3 Definition of PIE and listed entity 11 B1 Technology and innovation 10 B6 Materiality 8 B5 Tax planning and related services 7 B2 Models of service delivery 6 B12 Post-impl. review – restrd. Code

Key General Comments on Section B Consider how best to support and complement IFAC activities, particularly profession’s role in promoting sustainable growth and combating fraud and corruption Maintain global perspective vs focusing on national needs or needs of a limited number of jurisdictions Devote significant effort to increasing adoption of the Code Consider developing a framework for standard setting

IFAC SMP Committee Comments re Agenda Item 9-A Post-implementation review of restructured Code should be higher priority – understand implementation challenges, unintended consequences etc Support for staged approach to alignment of SWP period with IAASB’s – but recognize SSB independence Support for pause in new changes becoming effective Allow for more time and use alternative ways to obtain SMP input Undertake thorough cost-benefit analyses to inform identification of priorities

Matters for Consideration Views on the top 5-6 topics (within Section B) of the survey to focus on? Any general strategic considerations to take into account in development of CP?

Adoption and Implementation Strong support for indicated activities Key comments: Prioritize outreach efforts, with focus on G-20 Work towards greater international convergence Focus on providing support to SMPs Various suggestions for A&I activities

Pre-existing Commitments Various comments and suggestions received on list of pre-commitments Also some general comments Coordination with IAASB a priority Avoid taking on new standard-setting projects until pre-commitments fulfilled Focus post-implementation reviews on impact on SMEs/SMPs

Other Matters Raised Take on a project on “enablers”, e.g. moral courage? Consider longer pause in new changes to the Code? Develop one set of independence standards for all assurance engagements? Address specialized services such as valuation services and forensic accounting? Do some “stocktaking” to understand implementation challenges? Do more to meet needs of jurisdictions with sophisticated markets? Use evidence-basis for new work streams?

Matters for Consideration Views on respondents’ comments on: Adoption and Implementation? Pre-existing commitments? Reactions to respondents’ comments re general strategic considerations?

Way Forward Oct 2017 PC to begin development of SWP CP Dec 2017 First read draft CP Mar 2018 Discussion with CAG; IESBA approval of CP Sept 2018 Full review of responses to CP – CAG and IESBA Dec 2018 IESBA approval of final SWP Mar 2019 PIOB consideration of final SWP