1. Page 1 | Proprietary and Copyrighted Information The Singapore Framework Wui San Kwok IESBA Board Member IESBA Meeting New York April 13-15, 20 15

2. Page 2 | Proprietary and Copyrighted Information Agenda The Singapore Framework Who issues ethical-related standards? Standards setting approach Key differences - IESBA Code Learnings? Looking forward – possible Singaporean approach

3. Page 3 | Proprietary and Copyrighted Information Context The Singapore Framework Focus on Part B, financial statements audit Parts A & C – the same from 1 July 15

4. Page 4 | Proprietary and Copyrighted Information Who issues ethical-related standards (audits)? The Singapore Framework AuthoritiesMember Body Audit regulator Exchange Financial services authority

5. Page 5 | Proprietary and Copyrighted Information Extent of impact on profession depends on types of audit The Singapore Framework Authorities Applicability Audit regulator All audits Exchange Listed entities Financial services authority Financial institutions

6. Page 6 | Proprietary and Copyrighted Information Primary authority Standards direct impact profession The Singapore Framework AuthoritiesNotes Audit regulatorIFIAR member Issues ethics code, including AML/CTF Regulatory requirements

7. Page 7 | Proprietary and Copyrighted Information Secondary authorities Standards indirect & limited impact profession The Singapore Framework AuthoritiesNotes Exchange Financial services authority Pronouncements affect profession though audit entities. Eg. Rotation, Guides to Audit Committees

8. Page 8 | Proprietary and Copyrighted Information Approach to standards setting - IESBA Code plus The Singapore Framework IESBA Code + Modifications Starting point Requirements or guidance No less stringent Eg. materiality thresholds, custody of assets

9. Page 9 | Proprietary and Copyrighted Information Ethics - Regulatory requirements for audits The Singapore Framework Audit RegulatorMember Body Parts A & BParts A, B & C Audits + acts required by law All members Parts A & B – equivalent in both pronouncements

10. Page 10 | Proprietary and Copyrighted Information Where is Singapore vis-à-vis IESBA Code? - New Code closer alignment The Singapore Framework 1 July 2015 – IESBA Code (2014) Modifications, but has become lesser Reversals - certain bans for listed entities removed. Eg: –Internal audit –Contingent fees

11. Page 11 | Proprietary and Copyrighted Information New Code more closely mirrors IESBA Code now The Singapore Framework

12. Page 12 | Proprietary and Copyrighted Information Rotation - consistent with IESBA but modifications by other authorities The Singapore Framework Types of entitiesRotation Listed entitiesPartner – 5 x 2 Three “local” banksFirm – 5 yrs Temporarily suspended Government bodies (eg. Statutory Boards) Firm – 5 yrs Limited application

13. Page 13 | Proprietary and Copyrighted Information Public Interest Entity (PIE) - Additional prescriptions The Singapore Framework Effective 1 July 2015: –Entities in process of listing –Financial institutions (eg. banks, insurers, broker- dealers, asset managers, trustees, etc) –Large charities

14. Page 14 | Proprietary and Copyrighted Information Non-audit Services Fees (for PIE) - Communications with TCWG The Singapore Framework Annual non-audit services fees Annual audit fees Disclose to TCWG Discuss safeguards ≥ 50%

15. Page 15 | Proprietary and Copyrighted Information Communication – successor & existing auditors The Singapore Framework Requirement in every case. Ask if there are reasons for change new auditor should be aware of. Existing auditors need to reply.

16. Page 16 | Proprietary and Copyrighted Information Learnings? The Singapore Framework IESBA Code – currently viewed as proportionate international benchmark Limited modifications needed due to Singapore situations Felt some areas not addressed sufficiently – limited though

17. Page 17 | Proprietary and Copyrighted Information Learnings? The Singapore Framework AreasObservations RotationUnique Singapore reasons Non-audit FeesInsufficiently addressed PIEInsufficiently addressed AML/CTFInsufficiently addressed Successor-existing auditor communication NOCLAR will address

18. Page 18 | Proprietary and Copyrighted Information Learnings? The Singapore Framework Part response to concerns on firm’s strategy and debate on audit-only firm Accountants Act – control & management of public accountancy services by: –“Public accountants” –Ordinarily resident in Singapore

19. Page 19 | Proprietary and Copyrighted Information Standards setting approach - Singaporean way forward? The Singapore Framework Move towards codification under Singapore ethics code Better collaboration –Member body to play enhanced role? –Practitioner representation on board of audit regulator Re-constititution of member body Ethics Committee –AML/CTF –Corporate Governance?

20. Page 20 | Proprietary and Copyrighted Information Reconstitution of member body Ethics Committee The Singapore Framework MembersSpecial Observers Practitioners SMP Investor Legal Audit regulator Custodian “Chartered Accountants”

21. The Ethics Board www.ethicsboard.org