The International Ethics Standards Board for Accountants is mulling changes in its auditor independence standards for audits of collective investment schemes involving connected parties and pension funds.
The IESBA released a
Such arrangements allow investors to pool their funds and often rely on external parties for functions typically managed internally in conventional corporate structures, IESBA noted. This structure introduces specific relationships and need to be carefully considered to safeguard against any threats to auditor independence.
Victor Machado/Bluepeach
“Investment schemes play a critical role in both the savings and retirement of ordinary citizens and in the development and growth of our economies,” said IESBA chair Gabriela Figueiredo Dias in a statement. “This underscores the high level of public interest, and therefore the fundamental role of the independent audit, in this segment of the global financial system. Through this consultation, we are inviting stakeholders to share their insights and perspectives on specific matters to ensure that our independence standards remain relevant and capable of consistent application across audits of these schemes globally.”
Some of the main areas of focus in the consultation include the definition of “related entity” in IESBA’s ethics code and its applicability to audits of investment schemes, along with the connected parties that should be considered in relation to the assessment of auditor independence with respect to the audit of an investment scheme. Another focus involves the application of the ethics code’s conceptual framework when assessing threats to independence resulting from interests, relationships or circumstances between the auditor of an investment scheme and connected parties.
IESBA is asking stakeholders such as financial industry representatives, audit firms, experts, investors, regulators and jurisdictional standard-setters to submit their comments electronically through the IESBA website by June 30, 2025.
Credit: Source link
