ISCA sets standards and guidance relating to professional ethics which are issued as Ethics Pronouncements (EPs). EPs set out high quality ethical standards, including the fundamental principles of ethics, for professional accountants. These are integral for professional accountants to act in the public interest. The process in setting and revising EPs is robust, which promotes public confidence, From time to time, ISCA may also issue Implementation Guidances to support the profession in implementing the requirements in the EPs.
ETHICS PRONOUNCEMENTS (EPs)
EP 100 Code of Professional Conduct and Ethics
All ISCA members must adhere to EP 100 Code of Professional Conduct and Ethics. EP 100 is modelled after the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA) of the International Federation of Accountants (IFAC). It also encompasses any SG provisions included in the Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities issued by the Accounting and Corporate Regulatory Authority (ACRA). EP 100 contains three parts. Part A establishes the fundamental principles of ethics for professional accountants and provides a conceptual framework for applying those principles. Parts B and C illustrate how the conceptual framework is to be applied in specific situations. Part B applies to professional accountants in public practice. Part C applies to professional accountants in business.
EP 100 was first issued on 25 November 2015 and is effective from 1 January 2016.
EP 100 was last updated on 14 August 2018 and is effective from 15 December 2018.
Subject to the transitional paragraph 290.163,Section 290 paragraphs 290.148 to 290.168 are effective for audits of financial statements for periods beginning on or after 15 December 2018. Section 291 paragraphs 291.137 to 291.141 are effective on 15 December 2018.
The transitional paragraph 290.163 shall have effect only for audits of financial statements for periods beginning prior to December 15, 2023. This will facilitate the transition to the required cooling-off period of five consecutive years for engagement partners in those jurisdictions where the legislative body or regulator (or organisation authorised or recognised by such legislative body or regulator) has specified a cooling-off period of less than five consecutive years.
Please click here to access EP 100 (Effective 15 December 2018).
Please click here to access EP 100 (Effective 1 January 2016).
EP 200 Anti-Money Laundering and Countering the Financing of Terrorism - Requirements and Guidelines for Professional Accountants in Singapore
Expectations of professional accountants to combat money laundering and terrorist financing are rising. Internationally, there are increasing calls for professional accountants to adopt measures that are at least up to the international standards recommended by the Financial Action Task Force (FATF). Singapore is a member of the FATF, an inter-governmental body established to set standards and to promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and the financing of proliferation of weapons of mass destruction, and other related threats to the integrity of the international financial system. As a member of the FATF, Singapore is obliged to comply with the "International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation" issued by the FATF (FATF Recommendations) and is subject to FATF mutual evaluations on the adoption of FATF Recommendations. The FATF Recommendations include requirements for accountants.
In response, ISCA has developed the new EP200. This project demonstrates the commitment of ISCA to play its part in helping Singapore as a FATF member to combat money laundering and terrorist financing on a global scale.
EP 200 is applicable to all professional accountants and professional firms1 in Singapore.
Please click here to access EP 200 (Before 1 June 2017).
All ISCA Members are required to comply with the requirements in EP 200. Apparent failure to do so may result in an investigation into the member’s conduct by the Investigation Committee of ISCA. EP 200 is also adopted by ACRA and is applicable to public accountants and accounting entities registered under the Accountants Act who are regulated by ACRA (please click here for the press release).
1 A professional firm is an accounting corporation, an accounting firm or an accounting LLP approved under the Accountants Act; or an entity owned or controlled by a professional accountant or professional accountants, that provide professional services. Professional services are services requiring accountancy or related skills performed by a professional accountant including accounting, auditing, taxation, management consulting and financial management services, as well as the following designated high risk services:
(a) Buying and selling of real estate;
(b) Managing of client money, securities or other assets;
(c) Management of bank, savings or securities accounts;
(d) Organisation of contributions for the creation, operation or management of companies; and
(e) Creation, operation or management of legal persons or arrangements, and buying and selling of business entities.
EPs IMPLEMENTATION GUIDANCES (IGs)
EP 100 IG 1- Pro-Forma Paragraphs for Client Management to Acknowledge Its Responsibility for Non-Assurance Services
The pro-forma paragraphs in EP 100 IG 1 are issued with the objective of providing guidance to public accountants who have provided non-assurance services to audit or assurance clients, to obtain acknowledgement of management responsibility from the client management
The pro-forma paragraphs in EP 100 IG 1 may be included in (1) the audit engagement letter or (2) the separate stand-alone engagement letter for NAS.
Please click here for the IG.
Ethics Pronouncement 100 Implementation Guidance 2 (EP 100 IG 2) - Frequently Asked Questions on Key Audit Partners (KAPs)
EP 100 IG 2 is issued to provide clarification on the definition and identification and determination of KAPs.
Matters discussed include “key decisions or judgment” and indicators to identify significant subsidiaries and divisions. In certain situations, an audit partner responsible for the audit of significant subsidiaries or divisions may not be determined to be an “other KAP” of the group audit engagement. Paragraph 1.2 of EP 100 IG 2 highlights the need for the engagement team to document its basis in arriving at this conclusion.
The FAQs in EP 100 IG 2 are meant to provide broad guidance when assessing if a partner is a KAP. They address certain illustrative scenarios and are not meant to be an exhaustive list.
Please click here for EP 100 IG 2.
EP 200 IG 1 Frequently Asked Questions
EP 200 IG 1 is issued to provide clarification to professional accountants and professional firms when they implement the requirements in EP 200.
EP 200 IG 1 comprises FAQs which discuss the following areas:
- Section 1 - Who the beneficial owner is;
- Section 2 - What internal policies, procedures and controls to address money laundering and terrorist financing entail and sanction lists for screening; and
- Section 3 - Customer due diligence measures and ongoing monitoring.
The FAQs in EP 200 IG 1 are meant to provide broad guidance when professional accountants and professional firms implement the requirements in EP 200. It is not meant to be an exhaustive list.
The revised EP 200 IG 1 has incorporated conforming amendments resulting from the amendments to EP 200 on 28 March 2017.
Please click here for the revised EP 200 IG 1.
The illustrative flowchart and templates in EP 200 IG 2 are designed for professional accountants and professional firms which provide services listed in paragraph 1.5 of EP 200. Professional accountants and professional firms which provide services other than those in paragraph 1.5 may use these illustrations as best practice guide to tailor and adapt for use, as appropriate.
These illustrations are intended to provide broad guidance. They are not intended to be exhaustive; or to replace legislations, regulations or guidelines which may be issued from time-to-time by any relevant authority and which a professional accountant or professional firm is required to comply. Therefore, professional accountants and professional firms should exercise professional judgement to appropriately tailor and adapt these illustrations for use.
Please click here for the EP 200 IG 2 (last amended 28 June 2017)
To facilitate the use of the templates and forms, please click here for the word document (last amended 28 June 2017).
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