Welcome to Professionalism

Issue 44

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

Our last eNewsletter for 2024 provide updates on our activities and technical projects for October to December 2024.

APESB publishes its 2023/2024 Annual Report

Our Annual Report sets out details on our standard-setting program, stakeholder engagement, influence and ethics outreach activities, and our financial statements.

APESB has had an incredibly busy year, marked by robust engagement both nationally and internationally, including responding to parliamentary inquiries and government consultations on the regulation of the accounting profession.

During May 2024, APESB supported an International Ethics Standards Board for Accountants (IESBA)’s Delegation during their outreach activities in Australia, which connected with over 5,000 Australian stakeholders.

In addition, APESB provided input to the development of global ethical and independence standards through the APESB CEO's involvement as a board member of the IESBA and his contributions to IESBA’s global projects on Tax Planning, Sustainability and Firm Culture and Governance.

APESB is proud of the many achievements our small national organisation delivered to stakeholders in 2023/24 with limited resources in the public interest. To find out more about what was accomplished, access the 2023/24 annual report here.

New Compiled Code of Ethics and prohibitions guidance

On 20 December 2024, APESB issued a new compiled APES 110 Code of Ethics for Professional Accountants (including Independence Standards). The Compiled Code incorporates the restructured Code and nine 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, the Definition of Engagement Team and Group Audits, the Definitions of Listed Entity and Public Interest Entity and Technology-related revisions to the Code.

In addition, APESB issued an updated guidance document APES 110 Code Prohibition applicable to Auditors for all Audit and Review Engagement, December 2024 which incorporates changes to paragraph referencing to align to the new compiled Code.

Read the Compiled Code, the Technical Alert, and the Revised Prohibitions Document.

Revised APES 310 Client Monies

On 21 October 2024, APESB issued the revised standard APES 310 Client Monies. The revisions provide practical options for Professional Accountants in establishing Trust Accounts to comply with the standard and include updated template assurance reports. Material to assist with the process of opening trust accounts with banks has also been updated. The revised APES 310 is effective from 1 April 2025, with early adoption permitted.

Read the Standard and the Technical Update.

PIOB appoints APESB CEO as Vice Chair of IESBA

The Public Interest Oversight Board (PIOB) announced that Mr. Channa Wijesinghe, APESB CEO, has been appointed as the Vice Chair of the International Ethics Standards Board for Accountants (IESBA) for a two-year term commencing from 1 January 2025 and has been reappointed to IESBA for a second term (2025-27). This is the first time that an Australian representative has been appointed to the Vice Chair role at the IESBA.

Read more in APESB's Media Release.

APESB December 2024 Board Meeting

APESB held its quarterly Board meeting on 9 December 2024. The Board approved an Amending Standard to the Code for Tax Planning and Related Services, a revised APES 220 Taxation Services, and the three Transaction Advisory Services Related Pronouncements. These pronouncements will all be released in January 2025.

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 December 2024 Board meeting here.

Revised APES 215 Forensic Accounting Services
and APES 225 Valuation Services

In October 2024, APESB issued a revised APES 215 Forensic Accounting Services and a revised APES 225 Valuation Services. The key changes in both standards were the addition of the definition of Confidential Information in accordance with the change made in the Amending Standard to APES 110 Code of Ethics for Professional Accountants (including Independence Standards) for Technology-related revisions and consequential amendments to the related paragraphs where the definition of Confidential Information is used.

Both the revised APES 215 and APES 225 are effective from 1 January 2025, with early adoption permitted.

Read the Revised APES 215 and related Technical Update.

Read the Revised APES 225 and related Technical Update.

International Developments

IESBA Board Meetings

The IESBA held a Board meeting in person in New York between 2-6 December 2024. APESB CEO, Channa Wijesinghe attended these meetings in his capacity as an IESBA Board Member.

The IESBA approved two standards relating to Sustainability:

• the International Ethics Standards for Sustainability Assurance (IESSA) and related revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards); and
• Revisions to the Code on the Using the Work of an External Expert.  

The two standards are expected to be released in January 2025, pending certification from the Public Interest Oversight Board (PIOB). Both standards are effective for assurance engagements for periods beginning or after 15 December 2026.  Further information on the IESSA and Using the Working an External Expert Standard can be found on the IESBA's Projects website. 

The Firm Culture and Governance Working Group, chaired by IESBA Board Member and APESB CEO Channa Wijesinghe, presented their final report to the IESBA Board. The working group recommended the creation of a project with two work streams:

• to develop a new standard on accounting firm culture and governance, focusing, among other matters, on ethical leadership and accountability; and
• to develop non-authoritative material. 

The IESBA approved this project plan.

The next IESBA Board meeting will be held on 10-12 March 2025 in New York.

APESB Submission on draft TPB Information Sheets on Tax Agent Services (Code of Professional Conduct) Determination 2024  

On 29 November 2024, APESB made a submission to the Tax Practitioners Board's (TPB's) consultation on draft Information Sheets 56/2024 to 61/2024 relating to the Tax Agent Services (Code of Professional Conduct) Determination 2024. APESB were supportive of the proposed information sheets which will be a vital resource for registered tax practitioners to understand and comply with their obligations when providing tax services in accordance with TPB Code. 

Recent APESB Presentations

CPA Congress 2024

On 17 October 2024, APESB Director Ms Rachel Grimes AM presented at the CPA Congress on the topic of “Accountants as Ethical Influencers.” The presentation explored ethical dilemmas within the accounting profession, highlighted how ethics is the foundation of a profession, and the role of accountants as ethical influencers. It also offered guidance in navigating ethical challenges.

ICGN Melbourne Conference

On 14 November 2024, APESB CEO Channa Wijesinghe participated in a panel discussion on "Corporate Culture: How can Boards Drive Effective Values and Behaviours in their Organisations?" at the International Corporate Governance Network (ICGN) Melbourne Conference hosted by the Australian Council of Superannuation Investors (ACSI).

2024 IPA National Congress

On 29 November 2024, APESB Director Ms Rachel Grimes AM was a panellist at the 2024 IPA National Congress on the topic of "Building trust – lessons learned from PwC so far and where to from here.” The panel session discussed how the Parliamentary Joint Committee (PJC) Report from the inquiry into Ethics and Professional Accountability would impact trust, governance and accountability of the accounting and auditing profession.

FRC Board Meeting

On 4 December 2024, APESB CEO Channa Wijesinghe and Technical Director Jacinta Hanrahan presented at the FRC Board meeting. The presentation provided an update on APESB’s Strategy 2021-2025 and IESBA engagement, as well as technical projects relating to Tax-planning and related services, Sustainability-related standards and the IESBA’s Firm Culture and Governance project. Read the slides here.

Office Closure

The APESB office will be closed from 5pm Friday 20 December 2024 and will reopen at 9.00am on Monday 13 January 2025.