APB FINALISES ETHICAL STANDARDS FOR AUDITORSThe Auditing Practices Board (APB) has now finalised five Ethical Standards (ESs), having undertaken an extensive period of consultation. They will be effective for audits of financial statements for periods commencing on or after 15 December 2004. The Standards establish basic principles and essential procedures with which auditors are required to comply in any audit of financial statements. These Standards will replace the existing guidance for auditors, issued by the auditors' professional bodies. The five Standards cover:
APB Chairman, Richard Fleck, said: 'These standards represent a comprehensive revision of the ethical guidance that currently governs the auditing profession, and are designed to enhance public confidence in the quality of the audit process. In my view, they are rigorous, clear and therefore likely to be consistently applied and effective in practice.' In addition, the APB has also today issued a Consultation Paper, which contains: A summary of APB's response to the comments received on the exposure
drafts of the Standards issued in November 2003, and an exposure draft
of a new Ethical Standard - Exemptions Available for Small Entities Through this new Standard the APB proposes exemption from a small number of the requirements contained in ES 1 to 5 to the auditors of small entities. The APB hopes that users of the financial statements of small entities, as well as the auditors of such entities, will provide APB with their views on this additional Standard. APB Chairman, Richard Fleck, said: The consultation identified some concerns on the application of the Ethical Standards to audits of smaller entities. The APB proposes to address these particular concerns through a further standard, which we are issuing as an exposure draft for consultation. We will be very interested in commentators' views on the reliefs that this draft standard proposes'. |
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