1. 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

2. 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

3. 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?

4. 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

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

6. 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

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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?

14. 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

15. 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

16. 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?

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

18. 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