International Ethics Standard Board for Accountants IESBA Meeting New York June 29 - July1, 2015

The standard Setter Institute of Chartered Accountants of India (ICAI) International Ethics Standard Board for Accountants The standard Setter Institute of Chartered Accountants of India (ICAI) ICAI is a member of IFAC

International Ethics Standard Board for Accountants Legal Form ICAI’s Ethical Standards Board (ESB), formulates the ethical standards for accountants. The standards are approved by the Council of ICAI

International Ethics Standard Board for Accountants Level of convergence ICAI’s has adopted the IFAC/IESBA Code of Ethics 2005 edition. These standards are incorporated into the 11th edition of ICAI Code of Ethics published in 2009.  ICAI Code is divided into two parts –A and B Part –A based on IESBA based Code of Ethics (2005) Part-B based on domestic provisions pertaining to chartered accountants.

International Ethics Standard Board for Accountants Current Developments ICAI is currently involved in the process of adoption of the latest IESBA Code of Ethics (2014 edition) in its Code. ICAI has released a revised draft of the Code of Ethics to its members for feedback. This revised code is based on the IESBA handbook 2014. Expected date of adoption is not specified yet.

International Ethics Standard Board for Accountants Major Constraints Domestic developments like new Companies Act, 2013 etc. coming into force, the provisions of which have also to be simultaneously incorporated in the Code. ICAI stipulations more stringent than the IESBA

Major Constraints - Examples International Ethics Standard Board for Accountants Major Constraints - Examples Indian domestic law completely prohibits contingent fees whereas fees which is contingent upon findings is  permitted to a limited extent in the IESBA Code Provision of internal audit services to Audit clients are completely prohibited by law whereas the IESBA restrictions are limited. The term “Immediate family member” and “close family” in IESBA code is replaced with the term “relative” in ICAI Code which involves many more relatives in its ambit than the “Immediate family member” and “close family”. Pre-approval for all NAS by Audit Committee Rotation of Audit Firms - for all listed companies, All Unlisted companies with SC in excess of INR 100 Mn, All private companies with SC in excess of Rs, 200 Mn, and all companies with borrowing in excess of INR 500 Mn. Auditor cannot provide Corporate Finance services to its audit client For listed companies, public companies meeting specified criteria, public sector enterprises and government companies - aggregate fees from NAS cannot exceed the statutory audit fees

International Ethics Standard Board for Accountants Questions