APB ETHICAL STANDARD PROVISIONS AVAILABLE FOR SMALL ENTITIES (REVISED)

(Revised December 2010)

Contents

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Introduction Alternative provisions Economic dependence Self review threat – non-audit services Exemptions Management threat - non-audit services Advocacy threat – non-audit services Partners joining an audited entity Disclosure requirements Effective date

1-4

5–6 7 - 11

12 – 14 15 - 19 20 – 23 24 – 26 27

Appendix: Illustrative disclosures

ES - Provisions Available for Small Entities (Revised)

PREFACE

APB Ethical Standards apply in the audit of financial statements. They are read in the context of the Auditing Practices Board’s Statement “The Auditing Practices Board – Scope and Authority of Pronouncements (Revised)” which sets out the application and authority of APB Ethical Standards.

The terms used in APB Ethical Standards are explained in the Glossary.

2

THE AUDITING PRACTICES BOARD

ES - Provisions Available for Small Entities (Revised)

INTRODUCTION
1 The APB issues Ethical Standards which set out the standards that auditors are required to comply with in order to discharge their responsibilities in respect of their integrity, objectivity and independence. The Ethical Standards 1 to 5 address such matters as: • How audit firms set policies and procedures to ensure that, in relation to each audit, the audit firm and all those who are in a position to influence the conduct and outcome of an audit act with integrity, objectivity and independence; • • • • Financial, business, employment and personal relationships; Long association with the audit engagement; Fees, remuneration and evaluation policies, litigation, gifts and hospitality; Non-audit services provided to audited entities.

These Ethical Standards apply to all audit firms and to all audits and must be read in order to understand the