Revised Non-Assurance Services and Fee-Related Provisions of the Code of Ethics for Professional Accountants

Ms. Fiona Yip

Mr. Horace Ma

In June 2021, the Institute released revisions to the non-assurance services (NAS) and fee-related provisions of the Code of Ethics for Professional Accountants, following the revisions released by the International Ethics Standards Board for Accountants (IESBA). They significantly strengthen the guardrails around auditor independence in two important areas that have the potential to create incentives influencing auditor behavior—non-assurance services provided to audit clients and fees. For audits and reviews of financial statements or assurance engagements with respect to underlying subject matters covering periods of time, the revisions will be effective for periods beginning on or after 15 December 2022; otherwise, they will be effective as of 15 December 2022. Early adoption will be permitted.

This e-learning will provide an overview of the NAS and fee-related provisions of the Code. It will deep dive into specific provisions such as the following:

• New self-review threat prohibition for public interest entities (PIE) audit clients
• New requirements for firm communication with those charged with governance for PIE audit clients
• Self-interest threats created by fees paid by an audit client
• Strengthened provisions regarding relative size of fees to the firm from a particular audit client
• Enhanced transparency of fee-related information of PIE audit clients to those charged with governance and to the public