2010-06-15 PwC Response to Independence Proposals

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This newsletter contains links to the Independence Task Force of the CICA's Public Interest and Integrity Committee's Consultation Paper on Independence Requirements and Exposure Draft on Partner Rotation and a copy of PwC's response to each.

The Independence Task Force of the CICA's Public Interest and Integrity Committee has issued a Consultation Paper discussing proposals to adopt the Code of the International Federation of Accountants ("IFAC") as the Independence standards for Canada. The Task Force has also issued an Exposure Draft that proposes to adopt the IFAC partner rotation provisions for audits of listed entities. The primary change would be to allow the lead engagement partner and engagement quality control reviewer (or quality review partner) to continue on an engagement for seven years, followed by a two year time-out, as compared to the current service limit of five years followed by a five year time-out.

Below are links to the CICA Consultation Paper and Exposure Draft and a copy of PwC's response to each. PwC supports the adoption of the IFAC Code in Canada as well as the early adoption of the proposed partner rotation provisions.

• CONSULTATION PAPER - Independence Requirements
• CICA EXPOSURE DRAFT - Partner Rotation