Overall, we support the IAASB’s proposals to make narrow scope amendments to ISA 700 and ISA 260 to respond to the changes made to the IESBA International Code of Ethics for Professional Accountants (the IESBA Code) in relation to the requirement to publicly disclose when the auditor has applied the relevant ethical requirements for independence for certain entities in an audit. We agree, subject to our comments below, that the auditor’s report is the most appropriate place for the disclosure to be made.
We do have some concerns which the board should consider before finalising the proposed amendments.
To read the response in full, please download the consultation response document.