Tuesday, 8 November 2011

UK: APB consults on amendments to the Ethical Standards for Auditors

The Auditing Practices Board is seeking views on a couple of proposed amendments to Ethical Standard 5 and Ethical Standard 1: see here (pdf). The amendment proposed with regard to ES5 concerns an earlier amendment that took effect in December 2010, which prohibited firms from undertaking any tax services on a contingent fee basis for companies they audit where the outcome is dependent on uncertain tax law. A transitional provision was included, permitting firms to continue with engagements entered before 31 December 2010 until the earlier of 31 December 2011 or the completion of the engagement. The APB is proposing that this period should be extended to 31 December 2014 because it has been advised that a large number of engagements are likely to remain unresolved after 31 December 2011 because of the time it will take for legal proceedings to be completed.

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