Reference no: EM131707280

Question: In June 2004, the IFAC Ethics Committee issued its "Revision to Paragraph 8.151 Code of Ethics for Professional Accountants." Accordingly, for the audit of listed entities,

a. The lead engagement partner should be rotated after a predefined period, normally no more than seven years.

b. A partner rotating after a predefined period should not participate in the audit engagement until a further period of time, normally two years, has elapsed.

Required: How does the revised version differ from the previous version of the paragraph mentioned in Exercise?

Exercise: In June 2003, IFAC issued an IAPS providing additional guidance for auditors internationally when they express an opinion on financial statements that are asserted by management to be prepared in either of the following ways:

• Solely in accordance with IFRS.

• In accordance with IFRS and a national financial reporting framework.

• In accordance with a national financial reporting framework with disclosure of the extent of compliance with IFRS.

Required: Identify the additional guidelines under each of the three categories of audit opinion.