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Final Pronouncement: Alignment of Part 4b of the Code to ISAE3000 (Revised)

The International Ethics Standards Board for Accountants (IESBA) released Revisions to Part 4B of the Code to Reflect Terms and Concepts Used in ISAE 3000 (Revised). Part 4B of the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) comprises the independence standards for assurance engagements other than audit and review engagements.

The revision fulfils a commitment the IESBA announced in its Strategy and Work Plan, 2019-2023 to review and change Part 4B of the Code to make the part’s provisions consistent with the revised assurance terms and concepts in the International Auditing and Assurance Standards Board’s (IAASB’s) International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information.

The main revisions, developed in coordination with the IAASB, include:

  • Changes in key terminology, including a revised definition of the term “assurance client”;
  • Amendments to certain independence requirements in light of the revised assurance client definition;
  • Greater clarity as to the parties to an assurance engagement and their roles and responsibilities, and the related independence requirements that apply; and
  • A clearer distinction between the types of assurance engagement covered in Parts 4A (addressing independence for audit and review engagements) and 4B of the Code.

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