Welcome to Professionalism

Issue 40

APESB Board & Staff wish you a wonderful festive season
and a Happy New Year.

Our last eNewsletter for 2023 provides updates on our activities
and technical projects for October to December 2023.

APESB had an extremely busy year in 2022/23, both nationally and internationally, as set out in our Annual Report. Some of the key achievements and highlights over the 12-month period to 30 June 2023 include:

Issued 2 compiled codes, 11 pronouncements, 8 exposure drafts and 3 guidance documents.
Strengthening independence standards for auditors of public interest entities (PIEs) in relation to non-assurance services, fees and group audit engagements.
Hosted one of IESBA's Global Roundtables on Sustainability and an international panel event on sustainability.
Enhanced Australia's position as a global leader in defining and classifying PIEs.
Provided input to global ethical and independence standards development with IESBA Board Member and APESB CEO Channa Wijesinghe participating in 5 IESBA Board meetings, and 36 IESBA Committee/Taskforce meetings and webinars.
Worked with the IESBA, IFAC and NZAuASB to promote the adoption of professional and ethical standards.
Made national and international submissions on topics including sustainability, technology, tax, consulting services, and climate-related financial disclosures.

APESB is proud of the many achievements our small national organisation delivered in 2022/23 in the public interest. To find out more about what was accomplished, access the 2022/23 annual report here.

APESB November 2023 Board Meeting

APESB held its quarterly Board meeting on 17 November 2023. The Board approved the Amending Standard Technology-related Revisions to APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (to be issued in early 2024). The Board also agreed to consider a new project to consider the inclusion of a requirement in APES 110 to report breaches of unethical behaviour to professional accounting bodies.

In a video clip posted on LinkedIn, Channa Wijesinghe, APESB’s CEO, provides an overview of key decisions made and projects discussed at this meeting, or you can read the highlights of the November 2023 Board meeting here.

Revisions to the Definitions of Listed Entity and
Public Interest Entity (PIE) in the Code

In November 2023, APESB issued the Amending Standard Revisions to the Definitions of Listed Entity and Public Interest Entity in APES 110 Code of Ethics for Professional Accountants (including Independence standards). The amendments expand the definition of PIE, replace the term 'listed entity' with 'Publicly Traded Entity', and provide guidance on the factors to consider when determining whether an entity should be subject to the additional independence requirements applicable to PIEs.

The amendments will be effective for audits of financial statements for periods beginning on or after 1 January 2025, with early adoption permitted.

Read the Standard, the Technical Alert and the Basis for Conclusions.

New Compiled Code of Ethics

In December 2023, APESB issued a new compiled APES 110 Code of Ethics for Professional Accountants (including Independence Standards). The Compiled Code incorporates the restructured Code and 7 Amending Standards relating to Part 4B, Role and Mindset, Objectivity of an Engagement Quality Reviewer, Fees, Quality Management-related Conforming Amendments, Non-Assurance Services provisions of the Code and the revisions to the Code relating to the Definition of Engagement Team and Group Audits.

Read the Compiled Code of Ethics and the Technical Alert.

International Developments

IESBA Board Meetings

IESBA held a Board meeting in person in New York between 4-8 December 2023, and two virtual meetings on 13 and 15 December 2023. APESB CEO, Channa Wijesinghe attended these meetings in his capacity as an IESBA Board Member.

The IESBA approved the Final Pronouncement on Tax Planning and the strategy and work plan for 2024-2027. Due to recent ethical failings in multiple jurisdictions, the IESBA will undertake a key strategic project on firm culture and governance. Channa Wijesinghe has been appointed as the Chair of the Working Group for this global project.

The Board also approved exposure drafts on the Use of Experts and the proposed Ethics and Independence Standards for Sustainability Assurance Engagements (proposed Part 5). The exposure drafts are both expected to be released by the end of January 2024 for public consultation.

Click here for the Board Meeting Papers.

The next IESBA Board meeting will be held on 18-20 March 2024 in New York.

IESBA Tax Planning Taskforce

In September and October 2023, Channa Wijesinghe attended the IESBA Tax Planning Taskforce meetings held in New York. The Taskforce deliberated stakeholder feedback and developed the pronouncement for the IEBSA Board to consider. At the December 2023 IESBA meeting, the Board approved the final pronouncement Revisions to the Code Addressing Tax Planning.

Sustainability-related Developments

AASB issues an Exposure Draft on Sustainability Reporting Standards

On 23 October, the AASB released an Exposure Draft ED SR1, which proposes climate-related financial disclosure requirements. ED SR1 is open for public comment until 1 March 2024. The ED SR1 encompasses the following three draft Australian Sustainability Reporting Standards (ASRS Standards):

Draft ASRS 1 General Requirements for Disclosure of Climate-related Financial Information
Draft ASRS 2 Climate-related Financial Disclosures
Draft ASRS 101 References in Australian Sustainability Reporting Standards

Further information on the exposure draft and the consultation process can be found in the AASB’s media release.

International Auditing and Assurance Standards Board (IAASB)

Following the release of the exposure draft on the proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements on 2 August 2023, the IAASB held in-person roundtables around the world, virtual webinars for global audiences and regional and national meetings with regulators and oversight bodies.

The extensive global outreach campaign ensures a broad and inclusive consultation process, enhancing both the quality and trust in the final standard. APESB Chairman Nancy Milne and APESB CEO Channa Wijesinghe attended the global roundtable held in Sydney on 12 October 2023.

The comment period for the proposed ISSA 5000 closed on 1 December 2023.

IESBA Sustainability Independence Workstream

In the last quarter of 2023, Channa Wijesinghe attended workstream meetings of the IESBA Sustainability Taskforce. The Taskforce considered and discussed stakeholder and Board feedback to develop the final exposure draft.

Recent APESB Presentations

IPA Board Workshop

On 27 November 2023, Nancy Milne OAM (APESB Chairman) and Channa Wijesinghe (APESB CEO) attended an IPA Board workshop. APESB presented on its role and mandate and the recent ethical failings in the accounting profession. During the workshop, APESB and the IPA board discussed APESB's recommendations on measures or actions that could enhance ethics and professional accountability within large services firms. Read the workshop slides here.

IPA webinar - APESB update for SMPs

On 3 October 2023, Channa Wijesinghe (APESB CEO) presented a webinar for SMPs, which was moderated by Vicki Stylianou (Group Executive Advocacy and Policy at IPA). The presentation covered developments in Technology, Tax Planning Services, Fees, and APES 310 Client Monies. Read the slides here.

CPA Australia's Public Practice Advisory Committee

On 4 October 2023, Channa Wijesinghe (APESB CEO) provided an update on APESB's latest revisions to the Code and other pronouncements, recent global developments on Technology and Tax Planning Services, and recent ethical failings in the accounting profession. Read the slides here.

CPA Australia's Forensic Accounting Discussion Group

On 4 October 2023, Brian Morris (APESB Director and Principal at Morris Forensic) and Channa Wijesinghe (APESB CEO), along with Gregory O'Neil (Forensics Manager at TAC), presented an overview of the revised APES 215 Forensic Accounting Services issued in June 2023 to CPA Australia's Forensic Accounting Discussion Group. Read the slides here.

Office Closure

The APESB office will be closed from 5pm Wednesday 20 December 2023 and will reopen at 9.00am on Monday 15 January 2024.

Register to attend the next APESB Meeting

5 March 2024
(Hybrid meeting Sydney/Zoom)