You can read the full draft here, and submissions for comment are available until 16 February.
It appears the draft does not propose to substantially change conditions for accountants, and the underlying principles of accountants only holding receiving or disbursing of client monies in accordance with client instructions are unchanged.
Kristen Wydell, general manager for professional standards at Chartered Accountants Australia and New Zealand, summarised the changes for Accountants Daily:
· The current standard requires the professional association to approve a change in auditor. The ED has amended this and now requires the firm being audited to notify their professional body of a change in auditor within 20 business days.
· The incoming auditor needs to request an ethical clearance from the current auditor, and
· If the professional accountant can only co-authorise transactions in conjunction with their client, rather than obtain an audit of these transactions they can have a limited assurance engagement completed.
Further, Ms Wydell said the ED also “clearly divides” the requirements for professional accountants who operate trust accounts from those who operate a client bank account.
While the changes are not necessarily substantial, any changes to this area of practice require the attention and understanding of affected accountants.
“The client monies standard is an important standard as it outlines the requirements of professional accountants whenever they are in control, either completely or jointly of their client’s money,” said Ms Wydell.