International Federation of Accountants International Ethics Standards Board for Accountants Ken Dakdduk, IESBA Chair Ethics CAG Meeting Barcelona, Spain March 3, 2010

Activities deferred in –Conflicts of interest –Fraud and illegal acts New project –Independence – Related parties collective investment vehicles Adoption and implementation Convergence Strategy and Work Plan

Definition of conflict of interest Examples of conflicts Conflict identification, evaluation and management Timing Conflicts of Interest

Challenging project –Legislative and cultural differences –Interim consultation When to disclose confidential information when not required by law Nature of items to be addressed, threshold for taking action, process for responding Timing Responding to Suspected Fraud and Illegal Acts

Related entity definition based on control and significant influence Does not work well for collective investment funds, including mutual funds Timing Collective Investment Vehicles

Some material developed in 2009 Continue to assess what additional material might be useful Work closely with –Compliance Advisory Panel –SMP Committee –Developing Nations Committee Implementation and Adoption

Structure/format of Code –Visibility of independence prohibitions Understanding the conceptual framework approach Inadvertent violations Other Convergence Challenges

Develop a “visual” Extensive program of consultation with regulators and standard setters –Perspectives on convergence –How Code can be catalyst to achieve convergence Seeking input on –Using Code as benchmark for foreign auditors –Improvements that may be necessary for Code to gain greater acceptance Convergence Initiatives

Standard setting –Two projects to begin in 2010 –Seconded staffing from AICPA for no fee Cover out of pocket expenses only Adoption and Implementation –Will increase over 2009 Convergence –Will significantly increase over past years –Build on strong base established by the Code 2010 Activities