Proposed revisions to APES 305 Terms of Engagement

Accounting Professional & Ethical Standards Board Limited (APESB) proposes revisions to APES 305 Terms of Engagement (APES 305).

Following on from APESB’s review of APES GN 30 Outsourced Services (APES GN 30) and taking into consideration risks associated with outsourcing, the Board is proposing a mandatory disclosure to the client when outsourcing is used to deliver a professional service.

Key revisions include a new requirement that where outsourced services are utilised that the member must document and communicate to the client the details of the outsource service provider, the geographic location of where the outsourced service will be performed and the nature and extent of outsourced services. Similar application material is proposed in relation to the use of cloud computing in circumstances where it is not an outsourced service.

Feedback on the proposed changes should be received by the APESB no later than 15 October 2020.

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