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EP 100 (revised on 30 August 2023) – Expected to be Effective 15 December 2023

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 30 August 2023) to adopt IESBA’s final pronouncement, Revisions to the Code Relating to the Definition of Engagement Team and Group Audits (“ET-GA FP”). EP 100 (revised on 30 August 2023) is expected to be effective 15 December 2023. Early adoption is permitted.

The ET-GA FP addresses independence considerations in an audit of group financial statements. The revisions also address independence and other implications arising from the change in the definition of “engagement team” (ET) in EP 100 to align with that in Singapore Standard on Quality Management 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements (SSQM 1).

For purposes of specifying independence provisions for group audits, new terms are included in EP 100 based on (or aligned as closely as possible with) those in Singapore Standards on Auditing 600 (Revised) Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) (SSA 600 (Revised)).

Key revisions to EP 100 to adopt the ET-GA FP are as follows:

  • Provide guidance to facilitate the determination of individuals who are included in the ET and audit team/group audit team.
  • Consistent with SSQM 2 Engagement Quality Reviews, amend the definitions of “assurance team”, “audit team” and “review team” to recognise that engagement quality reviewers may be sourced from within or outside the firm or its network.
  • Enhance independence considerations for individuals and firms in an audit of group financial statements with a new Section 405 (Group Audits) that:
  • Requires appropriate communication between a group auditor firm (GAF) and a component auditor firm (CAF) on relevant ethical requirements, including those related to independence, consistent with SSA 600 (Revised).
  • Clarifies the approach to independence for individuals involved and firms engaged in a group audit, especially for individuals and firms outside the GAF’s network.
  • More explicitly sets out the process to address a breach of an independence provision at a CAF within or outside the GAF’s network.
  • Clearly set out the independence provisions applicable to a public interest entity (PIE) that would apply to a CAF outside the GAF’s network when the group audit client is a PIE, and the component audit client is not a PIE. 

Please click here for EP 100 (revised on 30 August 2023).