April 12, 2007

This document contains a letter of comment from NASBA to the International Ethics Standards Board for Accountants of the International Federation of Accountants in response to Exposure Draft Section 290 of the Code of Ethics Independence-Audit and Review Engagements.

All U.S. Certified Public Accountants (“CPAs”) are licensed and regulated by State Boards of Public Accountancy (State Boards) for all services they provide to publicly listed companies, non-public entities or individuals. CPAs are subject to practice and ethics requirements of State Boards in addition to the jurisdiction of other State or Federal governmental authorities. The State Boards are collectively represented by NASBA.

Our comments on the Exposure Draft focus on two key points:

  • A member body needs to consult with its regulators prior to issuing any changes to independence standards for its professionals.
  • Absence of adoption of a standard does not imply the specific independence requirements, in this case those included in the IESBA’s independence standards for significant public interest entities, were not considered for adoption by the regulators.

See Full Document:
IESB Letter of Comment

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