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IESBA Proposes Change To Code of Ethics Definition of Those Charged With Governance |
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41/2012 |
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25 Jul 2012 |
Circular 41/2012 |
TO ALL ACCOUNTANTS
IESBA PROPOSES CHANGE TO CODE OF ETHICS DEFINITION OF THOSE CHARGED WITH GOVERNANCE
On 20 July 2012, the International Ethics Standards Board for
Accountants (IESBA) released an Exposure Draft, entitled
"Proposed Change to the Definition of 'Those Charged with
Governance'", to solicit public comment.
The objectives of the change are to more closely align the
definition of ‘those charged with governance’ in the Code with
that in the IAASB’s International Standard on Auditing (ISA)
260, Communication with Those Charged with Governance, and to
eliminate any confusion as to how it is defined. The IESBA is of
the opinion that the proposals do not call for any change in
systems or common practice, should they be approved.
The change specifically aims to clarify that a subgroup, such as
an audit committee, may assist the governing body in meeting its
responsibilities. In those cases, the auditor shall determine
with whom within the entity’s governance structure to
communicate.
The IESBA, through this Exposure Draft, seeks to ascertain
whether the proposed change to the definition sufficiently
clarifies the term 'those charged with governance'. The IESBA
believes this will contribute to more consistent application of
the Code, in order to support the global adoption and
implementation of the Code.
The Ethics Standards Board of the Institute will be reviewing
the proposed change to the Code, and determine its applicability
in the local environment. Members are encouraged to provide
comments to the Exposure Draft and submit them to
technical@mia.org.my
by 24 August 2012.
HO FOONG MOI (MS)
Acting Chief Executive Officer |
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