Select All

TOTAL: 0 Bookmarks

0

MENU

Select All

TOTAL: 15 Bookmarks

1


Forgot password / username Re-send activiation email Register an account

Code of Ethics for Professional Accountants (November 2018)

 

  


Technical Resources

This webpage contains pronouncements, guides and articles that are relevant to the Code of Ethics for Professional Accountants (November 2018).

                                                                      

Why do we need a new standard

In November 2018, the Institute has revised the Code of Ethics for Professional Accountants (the “revised Code”) adopting the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board (the “International Code”) in April 2018.

 

The revised Code issued by the Institute consists of the following Chapters:

  • A is based on the International Code

  • [B – not used]

  • C contains either local application or represents an amplification of provisions in the International Code (i.e. Chapter A of this Code)

  • D is a comparison of the revised Code with the International Code

  • E applies to specialized areas of practice

  • F contains guidelines on anti-money laundering and counter-terrorist financing for professional accountants.

 

Chapters C, E and F are carried forward from the extant Code of Ethics for Professional Accountants (Revised February 2018) and form an integral part of the revised Code.

 

Chapter A of the revised Code includes substantive revisions and is completely rewritten under a new structure and drafting convention. The Code brings together key ethics advances over the past four years, including Responding to Non-Compliance with Laws and Regulations ("NOCLAR") and Long Association provisions and includes an enhanced conceptual framework. Key revisions include:

  • Revised “safeguards” provisions better aligned to threats to compliance with the fundamental principles;
  • Stronger independence provisions regarding long association of personnel with audit clients;
  • New and revised sections dedicated to professional accountants in business (PAIBs) relating to:

    • preparing and presenting information; and

    • pressure to breach the fundamental principles.

  • Clear guidance for accountants in public practice that relevant PAIB provisions are applicable to them;

  • New guidance to emphasize the importance of understanding facts and circumstances when exercising professional judgment; and

  • New guidance to explain how compliance with the fundamental principles supports the exercise of professional skepticism in an audit or other assurance engagements.

 

Effective Date

Chapter A of the revised Code will be effective as of 15 June 2019, subject to the following:

 

Independence Standards

  • Part 4A of Chapter A relating to independence for audit and review engagements will be effective for audits and reviews of financial statements for periods beginning on or after 15 June 2019.

  • Part 4B of Chapter A relating to independence for assurance engagements with respect to subject matter covering periods will be effective for periods beginning on or after 15 June 2019; otherwise, it will be effective as of 15 June 2019.

 

Long Association Provisions (Section 540)

The effective date of Chapter A of the revised Code does not override the effective date of the revised Long Association provisions in Sections 290 and 291 as set out in the January 2017 long association close-off document released by the International Ethics Standards Board for Accountants, which is as follows:                                     

  1. Subject to the transitional provision in (c) below, paragraphs 290.148 to 290.168 are effective for audits of financial statements for periods beginning on or after 15 December 2018. Early adoption is permitted.

  2. For assurance engagements covering periods, paragraphs 291.137 to 291.141 will be effective for periods beginning on or after 15 December 2018; otherwise, they will be effective as of 15 December 2018. Early adoption is permitted.

  3. Paragraph 290.163 shall have effect only for audits of financial statements for periods beginning prior to 15 December 2023. This will facilitate the transition to the required cooling-off period of five consecutive years for engagement partners in those jurisdictions where the legislative body or regulator (or organization authorized or recognized by such legislative body or regulator) has specified a cooling-off period of less than five consecutive years.

The effective dates of Chapter A are the same as that of the International Code. Early adoption is permitted.

 

 

  Click below for more information


901BTRIBe    HKICPA Code of Ethics for Professional Accountants (November 2018)
901BTRIBe IESBA International Code of Ethics for Professional Accountants (including International Independence Standards)
901BTRIBe IESBA Final Pronouncement – The Restructured Code including the Basis for Conclusion
901BTRIBe Close-Off: Changes to the Code Addressing the Long Association of Personnel with an Audit or Assurance Client
901BTRIBe

 

Focus:



Additional references issued by Standard Setters and Regulators
file/media/general/SMP-and-SME-Resource-Centre/901BTRIBe.gif IESBA Revised and Restructured Code of Ethics resources centre
   
Last updated: November 2018

 

Frequently used resources

 



Technical enquiries

  Click here to submit questions on standards issued by the Institute.