1. Alignment of Part 4B with ISAE 3000
Liesbet Haustermans, IESBA Member &
Working Group Chair
IESBA Meeting
New York, USA
September, 2018

2. Objective of the Initiative
To review Part 4B of the restructured Code for any revisions needed to align with the revised ISAE
No intention to re-open any discussion or to challenge the concepts of ISAE 3000 (Revised)

3. Objectives of the Session
To update IESBA on developments since the discussion in June
To enable IESBA to provide any comments on the project proposal for the alignment of Part 4B with ISAE (Revised)
To receive IESBA’s approval of the project proposal

4. Developments since June
The WG met in London on 23rd/24th July to consider the preliminary input received and develop the project proposal
Presentation received from Eric Turner of the Audit and Assurance Standards Board, Canada on the development of CSAE 3000 and CSAE 3001
Meeting with Helen Brennan, director of Audit and Assurance Quality and Risk Management at KPMG in London to discuss experience of providing attestation and direct engagements
Discussion of the project proposal with the CAG on 10 September

5. Key elements of the Project Proposal - Scope
The primary purpose of the project is to make appropriate revisions to the Code to align terms and concepts with ISAE 3000 (Revised)
The project also seeks to provide further clarification of the independence provisions applicable to the various parties to an assurance engagement in the light of the revised terms and concepts in ISAE 3000 (Revised):
This may involve re-visiting the definition of Assurance Client
Focus on consistency of the provisions for the PA to be independent of the Responsible Party across the different types of assurance engagements

6. Other elements of the Project Proposal - Scope
Some minor textual changes are identified of a clarifying and consistency nature
The project will review the use of application guidance in Part 4B, including how both ISAE 3000 (Revised) and the Assurance Framework are referenced in Part 4B
The project will reconsider the application of independence requirements where there are multiple responsible parties, in conjunction with review of Interpretation

7. Working Group’s preliminary response to input received
Preliminary thoughts of the WG:
To adopt the terms ‘attestation’ and ‘direct’ assurance engagements directly into Part 4B and to redefine the term ‘Assurance Client’
To define the parties from whom independence is required in terms of their responsibility for the subject matter and subject matter information
To require independence of the party responsible for the subject matter and, if different in an attestation engagement, also the party responsible for the subject matter information
It is expected that further clarification will be appropriate with regards to the compatibility of direct engagements with the independence concepts in Part 4B (Staff Publication/FAQ at same time as the Exposure Draft)

8. Feedback from the CAG meeting
CAG Representatives were presented:
Background of the initiative
Key elements of the Project Proposal
CAG was supportive of the Project Proposal
A Representative suggested to keep amendments limited to required alignment changes only

9. Matters for Consideration
Do IESBA members have comments on the Project Proposal ?

10. Proposed Timeline Indicative Timing Milestone September 2018
Discussion of project proposal with IESBA CAG
Discussion and approval of project proposal by IESBA
December 2018
First read proposed changes to the Code
March 2019
Discussion of proposed changes with IESBA CAG
Second read proposed changes to the Code
June 2019
Discussion with national standard setters
Approval of Exposure Draft

11. Matters for Consideration
Do IESBA members have comments on the proposed timeline ?

12. Approval of the Project Proposal
Do IESBA members approve the Project Proposal ?

13. Next Steps Meeting of the Task Force tomorrow (21st September)
Development of a draft aligned Part 4B for discussion in December