IESBA Proposes Guidance on Scepticism and Judgement

June 2017

The International Ethics Standards Board for Accountants (IESBA) has published the Exposure Draft, Proposed Application Material Relating to Professional Skepticism and Professional Judgment. The comment period ends 25 July 2017.

The proposal relates concepts in the IESBA Code of Ethics for Professional Accountants (Ethics Code) and clarifies application of the rules relating to:

  • How compliance with principles in the Ethics Code supports professional scepticism by auditors and assurance practitioners for audit, review, and other assurance engagements
  • The relationship between a sufficient understanding of the facts and circumstances known to professional accountants when exercising professional judgement in applying the conceptual framework underpinning the Ethics Code.

The IESBA developed the proposals in response to recommendations of the Professional Skepticism Working Group established by the IESBA, the International Auditing and Assurance Standards Board (IAASB), and the International Accounting Education Standards Board (IAESB).

The IESBA will include the final standards in the clarified and restructured Ethics Code, which the IESBA expects to be completed by the end of 2017.

The Exposure Draft is available on this link.

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