PART-2

Addition in Section 200: Conceptual Framework for PAIB

200.5A3: Professional accountants are expected to encourage & promote ethics-based
culture in the organization. Examples of actions that might be taken include the introduction,
implementation & oversight of:
 Ethics education and training programs.
 Management processes and performance evaluation and reward criteria that promote an
ethical culture.
 Ethics and whistle-blowing policies.
 Policies and procedures designed to prevent non-compliance with laws and regulations.

Addition in Section 220: Preparation & Presentation of Information

220.8A2: On preparation & presentation of information if professional accountant has
reason to believe that the information is misleading further action might be appropriate provided
that accountant remain alert to principle of confidentiality:
● Consulting with:
 A relevant professional body.
 The internal or external auditor of the employing organization.
 Legal counsel.
● Determining whether any requirements exist to communicate to:
 Third parties, including users of the information.
 Regulatory and oversight authorities.

PART-4A
Addition in Section 411: Compensation & Evaluation Policies
R411.4: A firm shall not evaluate or compensate a key audit partner based on that partner’s
success in selling non-assurance services to the partner’s audit client. This requirement does not
preclude normal profit-sharing arrangements between partners of a firm.
Addition in Section 520: Business Relationships
520.6.A1: The purchase of goods and services from an audit client by a firm, a network firm,
an audit team member, or any of that individual’s immediate family does not usually create a
threat to independence if the transaction is in the normal course of business and at arm’s length.
However, such transactions might be of such a nature and magnitude that they create a self-
interest threat.

Addition in Section 521: Family & Personal Relationships

521.9: If audit team member or partner of firm has family relationship falling within
definition of close relative under Companies Act-2063, with director, officer or an employee of
audit client in position to exert significant influence over FS Firm shall not accept to carryout
audit of such client