Welcome to Professionalism

Issue 38

In this issue we provide updates on our activities and technical projects for April - June 2023.

APESB May 2023 Board Meeting

APESB held its quarterly Board meeting on 31 May 2023. The Board approved the revised APES 215 Forensic Accounting Services, as well as two Amending Standards to the Code relating to the definitions of Engagement Team and Group Audits, and the definitions of Listed Entity and Public Interest Entity. The Board also approved 3 Exposure Drafts relating to APES 225 Valuation Services, APES GN 30 Outsourced Services and APES 310 Client Monies.

In a video clip posted on LinkedIn, Channa Wijesinghe, APESB’s CEO, provides an overview of key decisions made and projects discussed at this meeting.

You can read the highlights of the May 2023 Board meeting here.

Watch the video clip here.

Compiled Code of Ethics

On 11 May 2023, APESB issued the newly compiled APES 110 Code of Ethics for Professional Accountants (including Independence Standards). The Compiled Code incorporates the restructured Code and 6 Amending Standards relating to Part 4B, Role and Mindset, Objectivity of an Engagement Quality Reviewer, Fees, Quality Management-related Conforming Amendments and the Non-Assurance Services provisions of the Code.

Read the Compiled Code of Ethics.

Read the Technical Alert.

APESB Statement on the PwC Matter

In June 2023, APESB released a media statement on the PwC matter. 

Read the Media Statement here. 

Revised APES 215 Forensic Accounting

On 23 June 2023, APESB issued a revised APES 215 Forensic Accounting (APES 215) including amendments to specific definitions and examples to address ASIC staff’s concerns relating to evidence presented to the court under section 50 of the Evidence Act 1995. APES 215 also incorporates quality management-related conforming amendments in response to the revised Quality Management standards issued by APESB and AUASB.

The revised APES 215 is effective from 1 October 2023, with early adoption permitted.

Read the Standard.

Read the Technical Alert.

Read the Basis for Conclusions.

Amendments to the Code relating to the definitions of Engagement Team and Group Audits

On 30 June 2023, APESB issued amendments to APES 110 Code of Ethics for Professional Accountants (including Independence Standards) relating to the definitions of Engagement Team and Group Audits.

The amendments align with the International Ethics Standards Board for Accountant's (IESBA) revisions to the IESBA Code and incorporates Australian-specific changes to maintain the existing requirements relating to the definition of Engagement Team, and to retain the term Engagement Team in Part 3 of the Code to ensure consistency with other APESB pronouncements.

The revisions are effective from 1 January 2024.

Read the Standard.

Read the Technical Update. 

Exposure Drafts Open for Comment

In June 2023, APESB issued 3 Exposure Drafts and is now seeking stakeholder feedback.

Proposed amendments to APES 225 Valuation Services (ED 02/23)

ED 02/23 incorporates quality management-related conforming amendments in response to the revised Quality Management standards issued by APESB and AUASB. The proposed amendments align with APES 110 revisions and in time, Technology-related revisions to APES 110.

The proposed effective date for the revised APES 225 is 1 January 2024, with early adoption permitted.

Stakeholder comments are requested by 21 July 2023.

Read the Technical Alert.

Read the Exposure Draft.

Proposed amendments to APES GN 30 Outsourced Services (ED 03/23)

ED 03/23 addresses concerns raised by stakeholders during the post implementation review and incorporates quality management-related conforming amendments in response to the revised Quality Management standards issued by APESB and AUASB.

The proposed amendments are anticipated to be effective from the date of issue.

Stakeholder comments are requested by 21 July 2023.

Read the Technical Alert.

Read the Exposure Draft.

Proposed amendments to APES 310 Client Monies (ED 04/23)

ED 04/23 amends the definition of Assurance Engagement to align with the definition in APES 110. Appendix 2 and 3 are amended to incorporate quality management-related conforming amendments, references to APES 110 and to align with the AUSAB's revised ASAE 3100 Compliance Engagements.

The proposed effective date for the revised APES 310 is 1 April 2024, with early adoption permitted.

Stakeholder comments are requested by 18 August 2023.

Read the Technical Alert.

Read the Exposure Draft.

APESB submission on the IESBA’s Exposure Draft Proposed Revisions to the Code Addressing Tax Planning and Related Services

In May 2023, APESB made a submission to the IESBA on its Exposure Draft Proposed Revisions to the Code Addressing Tax Planning and Related Services.

APESB strongly supported the IESBA’s project to revise Tax Planning and Related Services due to its public interest imperative. 

APESB provided recommendations and encouraged the IESBA to consider incorporating additional guidance on key matters within the ethical framework to assist professional accountants in effectively implementing the proposals.

Read the submission.

APESB submission to the Senate Finance and Public Administration Committees Inquiry into Management and Assurance of Integrity by Consulting Services

In April 2023, APESB made a submission to the inquiry into the management and assurance of integrity by consulting services provided for the Australian Government.

APESB supports the inquiry, as its findings will assist in the delivery of high-quality professional services to the Australian Government, whilst upholding public interest and managing conflicts of interest.

APESB recommend that where consultants may not have a framework to refer to for managing conflicts of interest, a code of conduct, akin to APES 110, APES 320 and other applicable APESB pronouncements, could provide an appropriate framework to assess integrity, promote transparency and manage conflicts of interest.

Read the submission.

International Developments

IESBA Board Meetings

The most recent IESBA Board meeting was held via video conference and in person in New York between 12-16 June 2023.

APESB CEO, Channa Wijesinghe attended the meeting in his capacity as an IESBA Board Member.

The IESBA made significant progress on its Sustainability and Experts projects and are on track to deliver exposure drafts by the end of 2023.

Click here for the Board Meeting Papers.

The next IESBA Board meeting will be held between 18-22 September 2023 in New York.

Sustainability-related Developments

International Sustainability Standards Board (ISSB)

On 11 May 2023, the ISSB published the Exposure Draft Methodology for Enhancing the International Applicability of the SASB Standards and SASB Standards Taxonomy Updates. The proposed amendments enhance the applicability of the SASB Standards.

Stakeholder feedback is requested by 9 August 2023. Make a submission here.

On 26 June 2023, the ISSB issued its inaugural standards – IFRS S1 and IFRS S2. The standards will help to improve trust and confidence in company disclosures about sustainability to inform investment decision. IFRS S1 provides a set of disclosure requirements designed to enable companies to communicate to investors about the sustainability-related risks and opportunities they face. IFRS S2 sets out specific climate-related disclosures and is designed to be used with IFRS S1. 

Find out more about the two Standards here.

Read the latest ISSB meeting papers here.

International Auditing and Assurance Standards Board (IAASB)

At the IAASB's June Board meeting, the draft International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements was approved by unanimous vote for public consultation. The consultation will be open by early August 2023 until early December 2023, and will enable the IAASB to gather feedback from stakeholders and ensure the completion of the final standard in 2024.

Read the IAASB Media Release here.

Read the June Board Meeting Papers here.

Virtual Roundtable on Tax Planning and Related Services

On April 2023, APESB held a roundtable to seek stakeholder feedback on IESBA’s Exposure Draft Proposed Revisions to the Code Addressing Tax Planning and Related Services. The feedback received during the roundtable assisted APESB in preparing its submission to the IESBA.

View the roundtable slides here.

Telstra and Australia Post panel event

On 27 April 2023, APESB CEO and IESBA Board Member Channa Wijesinghe was part of the panel discussion at an event hosted by CA ANZ and presented on the global revisions to the IESBA Code of Ethics on Technology.

Professional Accountants in Business – IESBA Code Update Webinar

On 28 April 2023, APESB CEO and IESBA Board Member Channa Wijesinghe presented with IFAC Board Member Taryn Rulton and IESBA Director Geoff Kwan at the CA ANZ webinar, which was moderated by CA ANZ's Josephine Haste. The webinar provided an update on the IESBA Code and an opportunity for professional accountants in business to share their ethical challenges and address the issues they encounter.

Professional Standards Update – CPA Australia Reporting Centre of Excellence

On 23 May 2023, APESB CEO Channa Wijesinghe delivered a Professional Standards Update at CPA Australia's Reporting Centre of Excellence. The presentation covered the changing environment for professional accountants in business, APESB's standards, the IESBA Code, the IESBA's new Technology standard, the IESBA's sustainability projects, and Fees and Non-Assurance services provisions.

View the presentation slides here.

Presentation at CA ANZ Audit Conference

On 24 May 2023, APESB CEO Channa Wijesinghe and Principal Jacinta Hanrahan presented at the CA ANZ Audit Conference on strengthening the Auditor Independence requirements. The presentation covered the key changes to the Code relating to Non-Assurance Services, Fees, and the definitions of Listed Entity and Public Interest Entity.

View the presentation slides here.

10 Questions with the APESB

On 28 June 2023, APESB CEO, Channa Wijesinghe presented alongside the Chair of the CPA Australia Centre of Excellence for Ethics and Professional Standards, Brendan O'Connell at the 10 Questions with the APESB webinar hosted by CPA Australia. 

The presentation covered the latest developments relating to the APESB’s pronouncements including APES 215 Forensic Accounting Services, the non-assurance provisions in the Code, the definitions of Listed Entity and Public Interest Entity, as well as other upcoming projects on APESB’s agenda.

This presentation also addressed APESB’s position regarding the International Ethics Standards Board for Accountants’ (IESBA) proposed revisions to the Code with a key focus on technology, sustainability, and tax planning and related services. In particular, the presentation explored the intersection of ethics and technology by delving into the ethical considerations that accountants must be mindful of when utilising the outputs of technology such as Chat-GPT.

View the presentation slides here.