IAESB Offers Guidance on Professional Competence for Audit Engagement Partners

On the heels of the Public Company Accounting Oversight Board’s new standards for disclosure of audit engagement partners, the International Accounting Education Standards Board has issued new guidance for the implementation of its own standard, IES 8, Professional Competence for Engagement Partners Responsible for Audits of Financial Statements (Revised).

The International Education Standard prescribes the professional competence that professional accountants are required to develop and maintain when performing the role of an Engagement Partner responsible for audits of financial statements. 

The IAESB, which operates under the auspices of the International Federation of Accountants, has prepared a Questions & Answers publication and a webcast series to address questions or issues that might arise on implementation of IES 8 by professional accountancy organizations, public accounting firms, or engagement partners.

“The Education Board’s new standard on audit engagement partner competence comes into effect July 1, 2016, and many around the world are actively preparing to meet its challenging requirements,” said IAESB chair Chris Austin in a statement. “These support materials aim to assist those who have a role and responsibility for effective implementation of IES 8.”

On Tuesday, the PCAOB released new rules requiring the disclosure of the names of audit engagement partners and other accounting firms that participated in an audit (see PCAOB Passes Rules Requiring Disclosure of Audit Engagement Partner and Other Participating Firms). Thoe rules apply to firms that audit public companies that trade on U.S. exchanges.

On the international standards side, IES 8 builds upon educational requirements of redrafted IES 7, Continuing Professional Development (2014), IES 2, Initial Professional Development – Technical Competence (2015); IES 3, Initial Professional Development – Professional Skills (2015); IES 4, Initial Professional Development – Professional Values, Ethics, and Attitudes (2015); IES 5, Initial Professional Development – Professional Experience (2015); and IES 6, Initial Professional Development –  Assessment of Professional Competence (2015).