IESBA's Exposure Draft seeks comments for proposed guidance on the application of the conceptual framework in the Code to address the topic of the objectivity of an engagement quality reviewer (EQR), thereby supporting proposed ISQM 2 in addressing the matter of the eligibility of an individual to serve in an EQR role.
ACCA and CA ANZ welcome the opportunity to comment on the proposals to revise the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to address the objectivity of an Engagement Quality Reviewer (EQR).
We are supportive of what the IESBA is trying to achieve and the proposals are helpful. However, we have identified some potential enhancements and these are highlighted in our response where appropriate.
In particular, we believe the proposed guidance on engagement quality (EQ) reviews should be in a new standalone section within the Code and include requirements for cooling-off periods. These requirements should be principles-based and should not impose a stricter standard than the existing requirements within other sections of the Code.
To read the response in full, please download the consultation response document.