On 1 July 2016 a new International Education Standard (IES) issued by the International Accounting Education Standards Board (IAESB), part of the International Federation of Accountants (IFAC) came into force. IES 8 sets new professional competence requirements for audit engagement partners. In addition, a new version of the International Standard on Quality Control 1 (ISQC 1) was issued by the Financial Reporting Council (FRC) in June 2016. IES 8 supplements the CPD component of ISQC 1. This blog focuses on IES 8.
The new IES builds on the existing focus on:
professional competence which is already a requirement of legislation;
professional body licensing requirements; and
statutory auditors’ internal due diligence.
The revised standard may require audit partners to document evidence that CPD activity undertaken has contributed to the development and maintenance of the professional competence required for their role as an Audit Engagement Partner.
The learning outcomes to be achieved include, but are not limited to, areas such as:
- technical competence
- professional skills
- professional values
- ethics and
Audit Engagement Partners are expected to undertake CPD targeted to those aspects of their role which are in need of update. This may include industry specific CPD.
In their review work from 1 July 2016, CARB will check that firms have appropriate procedures in place to meet the requirements of IES 8 and that selected engagement partners and other RIs are using a planned programme of CPD to ensure the maintain the competencies required by IES 8.
A new Quality Control Procedures Manual under the ISQC1 (Revised) is available to purchase (including the IES 8 amendment) for €125 + VAT at https://jmcc.ie/d7/content/publications