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EP 100 (revised on 8 August 2024) – Expected to be Effective 15 December 2024

EP 100 establishes ethical requirements for members of the Institute of Singapore Chartered Accountants (ISCA) and is modelled after the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA).

ISCA has issued EP 100 (revised on 8 August 2024) to adopt two IESBA final pronouncements (FPs):

  • Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code (PIE FP) and revise the SG definition of “public interest entity” (PIE) in the Glossary of EP 100; and
  • Technology-related Revisions to the Code (Technology FP).

EP 100 (revised on 8 August 2024) is expected to be effective 15 December 2024.

1.  Revised EP 100 to Adopt PIE FP and Revised SG PIE Definition

The PIE FP specifies a broader list of categories of entities as PIEs whose audits should be subject to additional independence requirements to meet stakeholders’ heightened expectations concerning auditor independence when an entity is a PIE.

The key revisions to EP 100 to adopt the PIE FP are as follows:

  • Introduce an overarching objective for additional independence requirements for entities that are PIEs.
  • Provide guidance on factors for consideration when determining the level of public interest in an entity.
  • Introduce a transparency requirement for firms to publicly disclose the application of independence requirements for PIEs in performing an audit of the financial statements of an entity.
  • Expanded definition of a PIE by specifying a broader list of PIE categories and including a new term, “publicly traded entity” (PTE) to replace the term “listed entity”.
  • Recognise that relevant local bodies have the responsibility, and are also best placed, to assess and properly refine the PIE categories in the expanded definition as it would be impossible to establish a baseline definition globally which would not require further local refinements. 

In light of the expanded definition of PIE and new term “PTE” to replace the term “listed entity”, for purposes of local adaptation of the PIE FP:

  • The SG PIE definition was revised to clarify on the entities that would be considered as PIEs locally. The revised SG PIE definition clarifies that a listed business trust (BT) or listed real estate investment trust (REIT) should also be treated as a PIE locally. There is no change to the scope of SG PIE definition for financial institutions, large charities and large institutions of a public character as defined in the Glossary of EP 100.
  • SG provision, paragraph SG410.27A, currently applies to audit clients that are listed entities. The scope of SG410.27A has been revised to include audit clients that are PTEs, listed BTs and listed REITs, to be consistent with current practice of firms that audit listed BTs and listed REITs.

2.  Revised EP 100 to Adopt Technology FP

The technology-related revisions to the Code guide the ethical mindset and behaviour of professional accountants as they take advantage of the opportunities created by technology and adapt to new technology.

The key revisions to EP 100 to adopt the Technology FP are as follows:

  • Provide guidance fit for the digital age in relation to the fundamental principles of professional competence and due care, and confidentiality, as well as in dealing with complex circumstances.
  • Enhance the Code’s robustness in guiding the mindset and behaviour of professional accountants when they use technology by providing:
  • Examples of facts and circumstances relating to the use of technology that might create self-interest and self-review threats.
  • Factors to consider when a professional accountant intends to use the work of an expert/others or the output of technology.
  • Strengthen the independence standards by addressing the circumstances in which firms and network firms may or may not provide a technology-related non-assurance service to an audit or assurance client.

Please click here for EP 100 (revised on 8 August 2024).