Last week, the International Ethics Standards Board for Accountants (IESBA) proposed revisions to international independence standards for group audit engagements and the definition of engagement team to address recent changes to the International Auditing and Assurance Services Board's (IAASB’s) Quality Management standards.
For example, the proposal:
- establishes new defined terms;
- revises several existing terms;
- clarifies and enhances independence principles applicable to Individuals and firms involved in a group audit;
- establishes a more explicit process for addressing a component audit firm's independence breach; and
- aligns a number of independence provisions to conform to changes in the international auditing standards.
The IESBA requests comments by May 31, 2022.