1. Don Thomson, Task Force Chair IESBA Meeting New York July 7-9, 2014
Structure of the Code
Don Thomson, Task Force Chair
IESBA Meeting
New York
July 7-9, 2014

2. Recent developments Project proposal approved
Additional input received
National Standards-Setters
Forum of Firms and SMP Committee
Consultation Paper drafted, with examples
Matters arising from review noted for Board

3. Topics for Discussion Various matters brought to the Board's attention
(Informing the Board; discuss in this segment of the meeting only to the extent relevant to the deliverables or timeline of this project)
Draft Consultation Paper – discuss structure and content
Illustrative examples (financial interests later)
(In addition to input provided at the Board meeting, please provide any drafting suggestions to the TF afterwards; suggestions for financial interests are also welcome; line-by-line TF review at next TF meeting)

4. General principles Concordance (5-D) – where to; where from
No weakening – no requirements deleted
No change in the meaning of the standards
Unless appears warranted; Board agrees appropriate
Inform Board (5-A) – address now or in future
Unclear; gaps; inconsistencies; changes suggested; etc

5. Safeguards & responsibility (5-A# B,C)
Some regulators have expressed concern
Substantive changes beyond scope of this project
A safeguards project may have pervasive impact
Consider project with sufficient work to assess timetable/alignment
Be mindful of the desire for timely restructuring
Firm policies & procedures to clarify responsibility
Further TF consideration; Consultation Paper will solicit input

6. Other matters (5-A #D to G)
PA in PP includes firm – consider stating PA or firm
Issues re firms include definition, related firms, non-PAs in firms
Definition of firm in Code differs from IAASB definition
Firm and other definitions – within or outside scope?
Drafting conventions – will use to clarify scope of project
Separation of 290/291 – plan to retain separation

7. Other matters (5-A #H)
Revised numbering system – more conducive to changes
100 is Part A
200 is Part B 200 to 280
300 is Part C
400 is Independence – audit and review engagements (s.290)
500 is Independence – other assurance engagements (s.291)

8. Other matters (5-A #I)
“Professional accountant or firm” – a useful term?
Extant "generally" – meaning? develop examples?
Revised – apply to "PA" rather than "PA or firm"?
Revised (extant ) – move to intro?
Revised – within scope? suggestions?
Revised b (extant ) – meaning change?

9. Consultation Paper Introduction Background Restructuring
Responsibility
Clarity
6. Electronic features & Re-organization
7. Issues re examples
8. Examples
9. Impact Analysis

10. Consultation Paper Introduction Background Restructuring
Purpose of the project: improve usability of the Code
Background
Basis for the proposals
Restructuring
Purpose / Requirements / Explanatory material

11. Consultation Paper Responsibility Clarity of language
Clarification; firm policies; no change in meaning
Clarity of language
Make Code easier to understand, where possible
Electronic Features and Re-organization
Improved navigability / filtering / linkages

12. Consultation Paper Issues related to examples
e.g. gaps; inconsistencies; changes contemplated in requirements / guidance; whether address now / later
Examples of restructured Code
From Part A, Part B, Part B (290), Part B (291)
Impact Analysis
Stakeholders asked to provide input

13. CP – Illustrative Examples
Foreword will provide an overview
For all sections
Purpose, requirements, explanatory material
Clear language, defined terms identified
s.200 introduces networks and network firms
identify responsibility for firms

14. Forward timeline (tentative)
Sep'14 – CAG – draft CP
Oct'14 – IESBA – approve CP
Jan'15 – IESBA – continue review of restructured Code
Mar'15 – CAG – CP responses
Apr'15 – IESBA – CP responses
Jun-Jul'15 – IESBA – draft ED
Sep'15 – CAG – draft ED
Oct'15 – IESBA – approve ED
Early 2017 – Finalize and issue a restructured Code
Jan'18 – Code effective

15. Matters for IESBA Consideration
Any Other Comments or Questions ?