Emerging Issues and Outreach Committee Winifred Kiryabwire, EIOC Chair IESBA Meeting Nashville June 17-19, 2019

Objectives To update the Board on EIOC activities since December 2018; To discuss IESBA Outreach Activities; Background; Objectives; Key stakeholders; and Geographic regions. Other matters for Board noting.

Role of EIOC EIOC Terms of Reference: Status of global adoption Developments in key jurisdictions Matters identified by EIOC Outreach matters Some SWP commitments in which EIOC should/could have role: Monitoring emerging issues Outreach

EIOC Activities since December 2018 The EIOC met in person in the margins of the March 2019 IESBA meeting and via conference call in April and May 2019 to discuss several emerging issues or developments it had noted and to agree matters to bring to the Board’s attention.

IESBA Outreach Activities Background SWP commitments on outreach EIOC remit to reflect on outreach activities and advise on strategy Outreach strategy for 2019-2023: Objectives Key Stakeholders Regions / Jurisdictions Frequency

Intensity of Outreach Activities by Countries 2016-2019

Intensity of Outreach Activities across G20 Countries by Year

Frequency of Outreach Activities by Stakeholders and Type

Outreach strategy for 2019-2023 Key stakeholders (Section C of Agenda item 9A): Regulatory community (e.g. IFIAR, IOSCO) Investors National Standard Setters The profession (firms and IFAC member bodies) IAASB and other IFAC boards and committees INTOSAI Academia

Categorization of Stakeholders

Outreach strategy for 2019-2023 Objectives: Enhancing stakeholder trust in the Code Promoting, adoption and effective implementation Raising awareness of the Code and the Board’s work Engaging in dialogue with stakeholders Hearing of stakeholder concerns Facilitating implementation of the Code Co-operation with key stakeholders

Matters for Consideration Do IESBA members agree with the proposed criteria for the categorization of stakeholder organizations, and the actual allocations of organizations to the different categories? Are there other stakeholder organizations that should be included, from the perspectives of both professional accountants in public practices (PAPPs) and professional accountants in business (PAIBs)? Taking into account the relative number of engagements set out in the table for Category A, do IESBA members believe there is a need to recalibrate the outreach effort to Category A organizations?

Outreach strategy for 2019-2023 Geographic regions (Section D of Agenda Item 9A): Generally, IESBA outreach activities to date have focused on Africa, Asia Pacific, South Asia, the Middle East, Western Europe, North America and Latin America, and to a lesser extent Eastern Europe In relation to the G20 countries, the Board has expended outreach efforts in the following countries in the period 2016-2018 or will do so in the near future (refer to following slides below): Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Korea, Mexico, Russia, Saudi Arabia, South Africa, UK and US. In the light of the above, the EIOC recommends that the Board prioritize outreach efforts towards Argentina and Turkey in the near future

Matters for Consideration Do IESBA members agree with the EIOC’s recommendation? Which other jurisdictions outside the G-20, if any, should be specifically targeted? Do IESBA member have any further ideas on how to enhance outreach activities?

Other Matters – For Board Noting Developments in the United Kingdom Key reviews Kingman Review of FRC CMA Competition in the audit market BEIS Future of audit Brydon Quality and effectiveness of audit

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