1. Long Association Task Force
Marisa Orbea,
Task Force Chair
IESBA CAG Meeting
September 14, 2015
New York, USA

2. Background August 4, 2014 ED 77 responses received
Long Association
Background
August 4, 2014 ED
77 responses received
IESBA considered all comments and issues over January, April and July 2015 meetings
Consideration by CAG at March 2015 meeting limited primarily to EP/EQCR rotation requirements
Several views that EQCR rotation requirements should not be lesser than those applying to the EP

3. CAG views on EQCR reported to IESBA Taskforce has presented options:
Long Association
Background
CAG views on EQCR reported to IESBA
Taskforce has presented options:
Revised thinking on the EQCR
Option for recognizing different jurisdictional approaches
CAG to consider remaining items from March 2015
Conclusive views from CAG for IESBA

4. Rotation of KAPs on the Audit of PIEs – Proposals mainly discussed March 2015

5. Rotation of KAPs on the Audit of PIEs
Long Association
Rotation of KAPs on the Audit of PIEs
ED Proposal
Respondents support?
Board’s Current position
7-yr time-on all KAPs
Most supported
No change
5-yr cooling-off for EP on all PIEs
Majority did not support
No change, but addition of jurisdictional consideration
2-yr cooling-off for other KAPs on all PIEs (inc EQCR)
Most supported but some significant disagreement
EQCR - 5 yrs cooling-off on listed PIEs/ 3 yrs on non-listed PIEs/ 2 yrs cooling-off for other KAPs. Addition of jurisdictional consideration

6. Rotation of KAPs on the Audit of PIEs
Long Association
Rotation of KAPs on the Audit of PIEs
ED Proposal
Respondents support?
Board’s Current position
5 yrs off if only 1 yr as EP
General disagreement
If KAP for 7 yrs but EP for 4+ yrs or 2 out of last 3 then cool off for 5yrs
EP becoming EQCR
New issue – not in ED
Liaising with IAASB ISQC 1 WG

7. Restrictions on Activities and Enhancement of General Provisions - Not discussed March 2015

8. EP - Recognizing different requirements
Long Association
EP - Recognizing different requirements
New proposal
Stakeholder support?
Board’s current position
Allowance for a 5-yr cooling-off period for an EP or EQCR to be reduced to 3 yrs in certain conditions
Was not in the ED. Option for dealing with many different approaches for example, jurisdictions with firm rotation/ retendering/or shorter time-on
5-yr cooling-off could be reduced to 3-yr if regulator/legislator with due process has:
Determined time-on shorter than 7 yrs for EP/EQCR or
Implemented MFR/or mandatory retendering at least every 10 years in addition to EP/EQCR rotation
Implemented a regulatory inspection regime

9. Restriction on Activities Performed by a KAP
Long Association
Restriction on Activities Performed by a KAP
ED Proposal
Respondents support?
Board’s current position
Allowance for limited technical consultation with former EP who is also a technical specialist after 2 years
On balance, more respondents supported proposal that limited technical consultation during the cooling-off period be permitted with conditions
Continued support - 2 changes re when consultation occurs only;
With engagement team and not the audit client
If no one else in firm has the expertise
Reworded to remove any suggestion of being engagement team consultant
Additional restrictions on activities performed by KAP in cooling-off
Evenly balanced views. Against = too strict
For = not strict enough
Board continues to support ED and is not proposing adjustments.

10. Enhancements to the General Provisions
Long Association
Enhancements to the General Provisions
ED proposal
Respondents support?
TF considerations
New C and .150D
Most supported
No change but .150D deleted as repetitious
Concurrence of TCWG
No change
Enhancements to
No change, but suggestions considered and added
Applies to all audit team
No change, but additional factors added
Firm determining time-out
291 corresponding changes
Corresponding changes