1. IESBA Meeting New York March 12-14, 2018
Strategy & Work Plan
Stavros Thomadakis, IESBA Chairman
Ken Siong, Technical Director
IESBA Meeting
New York
March 12-14, 2018

2. Context and Environmental Factors
New platform of restructured Code
Rapid spread of digital technologies, “data
economy,” more liquid workforce
Continuing regulatory pressure:
Meet needs of developed markets and audit inspection authorities
Timely standard setting
Heightened stakeholder expectations re SSB coordination
MG review important but maintain steady focus on SWP

3. Sept and Dec 2017 CAG and Board Discussions
CAG broadly aligned with PC analysis of strategy
survey results re top 6 standard-setting priorities
Board directionally supportive of draft CP but…
Elevate vision to focus on trust, values, public interest
Explain more clearly why raising ethical bar is a strategic theme
Distinguish more clearly between items of more strategic nature vs others
Revisit proposed prioritization of identified topics, esp. tax planning services
Better recognize that some topics have overlapping areas

4. Mar 2018 CAG Discussion
Overall support for moving forward with CP, but …
Identify and respond to emerging issues from
stakeholder outreach, incl. through off-Code guidance
PIOB: Timeliness is about prioritization, not rigor or
length of process, but maintain flexibility and agility
Aim for Code to be aspirational vs “lowest common denominator?”
Support for addressing topic of materiality
Consider leveraging analysis and other work done in Europe re ethics of aggressive tax planning

5. IFAC SMP Committee Input
Support for CP recognizing importance of:
Close liaison with IFAC SMP Committee
Evidence-based standard setting
Coordination with IAASB and IAESB
Commendable to prioritize topic of tax planning services
but a significant undertaking with uncertain outcome
Acknowledge moratorium on new changes not becoming effective before June 2020

6. Proposed Vision for the Code
Strategic Orientation for
Proposed Vision for the Code
A Code that lays a foundation of strong ethical principles, values and standards to underpin trust in the global accountancy profession in a dynamic world, and to enable it to act in the public interest.

7. Proposed Strategic Themes
Strategic Orientation for
Proposed Strategic Themes
Maintaining a global Code that is relevant and fit for purpose
Raising the ethical bar through further strengthening the Code
Raising the ethical bar through increasing global adoption and effective implementation of the Code
Proactively engaging and seeking cooperative avenues with key stakeholders

8. Criteria Influencing Development of Work Plan
Developing the Work Plan
Criteria Influencing Development of Work Plan
Benefits to public interest
Further enhance public trust in the Code and profession
Further raise ethical bar by supporting public interest outcomes
Pervasiveness of the matter
Degree of urgency
Global relevance
Feasibility within realistic timeframes

9. Managing Delivery of SWP
Developing the Work Plan
Managing Delivery of SWP
Key focus areas
Independence of IESBA and strength of its reputation, and global acceptance of the Code
Capacity at leadership, volunteer and staff levels
Operational effectiveness and stability
Robust outreach and communication with stakeholders

10. Matter for Consideration
Strategic Orientation for
Matter for Consideration
Views on:
Proposed vision and strategic themes
Criteria for prioritizations
Description of management of delivery of SWP

11. Pre-commitments # Topic Scope Status 1. NAS
Int’l Independence Standards
Fact finding commenced 2.
Fee-related matters
Part 3 and IIS
WG report expected Q2 2018 3.
Professional skepticism
Whole Code (PAPPs & PAIBs)
Consultation paper Q2 2018 4.
E-Code
Whole Code
Initial IESBA discussion Q1 2018 5.
Part 4B consistency with ISAE 3000
IIS
IESBA discussion Q2 2018 6.
NOCLAR post-implem. review
Fact finding to begin Q1 2022 7.
Long association post-implem. review 8.
IAASB-IESBA coordination
Some topics under way

12. Clear Strategic Priorities
Proposed Future Standard-setting Initiatives
Clear Strategic Priorities
Topic
Scope
Technology and innovation
Whole Code (PAPPs & PAIBs)
Models of service delivery
Part 3 and IIS
Tax planning and related services
Whole Code

13. Proposed Future Standard-setting Initiatives
Other Priorities
Topic
Scope
Definitions of PIE and listed entity
IIS
Materiality
Part 3 and IIS
Post-implem. review restructured Code
Whole Code
Communication with TCWG
Documentation

14. PIOB Communication of Public Interest Issues to IESBA
PIOB Concerns
Topic
Scope
Potential impact of fee levels on independence
Share of firms’ revenue from consulting services increasing vs audit revenue
Potential for fewer and lower quality resources for audit
Sufficient concern among stakeholders to justify comprehensive project on fees in next strategy cycle
Audit firms’ business model
Audit firm business model can be seen as a barrier to real independence, to effective implementation of PS, and to audit quality
Recommendation to consider issue in-depth in next strategy cycle

15. PIOB Communication of Public Interest Issues to IESBA
PIOB Concerns
Topic
Scope
Address significant ethical issues in public discourse in SWP
PIOB view that IESBA needs to delve more deeply into public interest implications of aggressive tax planning
Coordination among SSBs
Extend collaboration among SSBs further
Ensure SSB coordination operating effectively to increase coherence of standards

16. Some Key Considerations
Proposed Future Standard-setting Initiatives
Some Key Considerations
How best to approach pervasive topic of technology?
How best to address overlaps between topics?
E.g., NAS & Fees
Changes to the Code vs off-Code guidance?
Consideration of thought pieces/discussion papers?
Need for coordination with other SSBs?

17. Matters for Consideration
Developing the Work Plan
Matters for Consideration
Views on :
Proposed Work Plan re content and timing?
Specific identified priority actions?