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Unformatted text preview: IESBA Code) and are completed before July 1, 2013 (July 1, 2011 in IESBA Code).
9. Fees – Relative Size
129 Paragraph 290.222 provides that, in respect of an audit or review client that is a public interest
entity, when the total fees from that client and its related entities (subject to the considerations in
paragraph 290.27) for two consecutive years represent more than 15% of the total fees of the firm
expressing the opinion on the financial statements, a pre- or post-issuance review (as described in
paragraph 290.222) of the second year’s audit shall be performed. This requirement is effective for
audits or reviews of financial statements covering years that begin on or after December 15, 2012
(December 15, 2010 in IESBA Code). For example, in the case of an audit client with calendar year
end, if the total fees from the client exceeded the 15% threshold for 2013 (2011 in IESBA code) and
2014 (2012 in IESBA Code), the pre- or post-issuance review would be applied with respect to the
audit of the 2014 (2012 in IESBA Code) financial statements.
10. Compensation and Evaluation Policies
Paragraph 290.229 provides that a key audit partner shall not be evaluated or compensated based
on that partner’s success in selling non-assurance services to the partner’s audit client. This
requirement is effective on January 1, 2014 (January 1, 2012 in IESBA Code). A key audit partner
may, however, receive compensation after January 1, 2014 (January 1, 2012 in IESBA Code) based
on evaluation made prior to January 1, 2014 (January 1, 2012 in IESBA Code) of that partner’s
success in selling non-assurance services to the audit client.
D. IFAC 2010 CODE OF ETHICS FOR PROFESSIONAL ACCOUNTANTS
International Federation of Accountants
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This publication was prepared by the International Federation of Accountants (IFAC). Its mission is to
serve the public interest, strengthen the worldwide accountancy profession and contribute to the
development of strong internationa...
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- Spring '14