ED NZAuASB 2020-1
Proposed Amendments to PES 1:
Part 2, Assurance Practitioners Performing Professional Activities Pursuant to their Relationship with the Firm
The NZAuASB has published for public comment an Exposure Draft, Proposed Amendments to PES 1: Part 2, Assurance Practitioners Performing Professional Activities Pursuant to their Relationship with the Firm.
It is possible is for assurance practitioners to find themselves in ethically problematic circumstances that do not involve clients and hence face the same issues and ethical dilemmas as professional accountants in business.
Examples of such circumstances include, potential conflicts an assurance practitioner may face when performing work for an employing organisation, facing undue pressure from within the firm, or facing pressure from within the firm to offer inducements.
Circumstances such as these are currently addressed in PES 1 by reference to other ethical requirements.
NZ R300.5 requires:
Where an individual who is an assurance practitioner is performing assurance services pursuant to the assurance practitioner’s relationship with the firm, whether as a contractor, employee or owner, the individual shall comply with any other ethical provisions that apply to these circumstances.
The NZAuASB believes incorporating Part 2 into PES 1 will be beneficial to all assurance practitioners by providing all ethical requirements in one place.
Commenting on the Proposals
The NZAuASB encourages you to read the Exposure Draft and its accompanying explanatory memorandum, and to comment on the proposals.
Send your comments – both formal and informal – by 20 July 2020 to the NZAuASB using the secure upload form below.
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