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ISCA provided comments on IAASB’s ED: Proposed Narrow-Scope Amendments to IAASB Standards Arising from the IESBA’s Using the Work of an External Expert Project.
The proposed amendments address recent revisions to the IESBA Code concerning the use of the work of an external expert. These changes relate primarily to:
- Evaluating the competence, capabilities and objectivity (CCO) of the external expert. This includes situations where the external expert is expected to provide certain information in writing to assist the professional accountant (PA) in evaluating the external expert’s objectivity; and
- Concluding on the external expert’s CCO, including circumstances in which the PA would be unable to use the work of the external expert.
We agree with the proposed amendments to align the IAASB standards to the IEBSA Code, but highlighted concerns over challenges in obtaining the necessary information on financial interests, relationships and independence from external experts, who may not be subjected to the IESBA Code. To support implementation, we recommend that IAASB and IESBA play a key role in increasing outreach to the external expert community to raise awareness of the requirements, as well as providing guidance on practical steps that PAs can take to obtain the necessary information.
Read the full response to IAASB at here.