• Professional & Ethical

Proposed Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code

IESBA ED Jan 2021 coverThe International Independence Standards contain additional independence requirements for audit clients that are a Public Interest Entity (PIE). The IESBA is proposing a more holistic approach to defining a PIE with the global standards and has released for public comment the Exposure Draft, Proposed Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code. 

Have a look



The proposals:

  • Introduce an objective for additional requirements to enhance confidence in the audit of financial statements of PIEs;
  • Provide guidance on factors to consider when determining the level of public interest in an entity;
  • Broaden the definition of PIE to additional categories of entities
  • Replace the term “listed entity” with the term “publicly traded entity”
  • Introduce requirements for firms to determine if additional entities should be treated as PIEs and to publicly disclose if an audit client was treated as a PIE.


Webinar iconWe invite you to attend an interactive webinar on 8 March 2021 at 12:00 noon to explore the IESBA proposals and the impact of these proposals in the New Zealand context.

This is also your opportunity to provide us with your feedback on the current New Zealand PIE definition.

Register here

Commenting on the Proposals

The current New Zealand definition of a PIE already incorporates the proposed additional categories of entities to be included in the global definition of a PIE.

The NZAuASB is therefore not proposing to adopt the wording of the exposure draft without amendment in New Zealand.  It intends to prepare a domestic exposure draft once the global standard is finalised. 

The NZAuASB is, however, interested to hear your thoughts on the IESBA proposals to inform the development of a New Zealand submission.

The Board will consider all feedback when submitting its response to the IESBA.

  • Share your views with the NZAuASB by 25 March 2021 (using the form below); or
  • Respond directly to the IESBA by 3 May 2021

Upload your submission here

Please use this secure online form.

It has been designed to make your upload safe, quick and easy. 

You can:

  • Upload an MS Word document (and a PDF file, if you wish); or
  • Write your comments below in the space provided.

You can upload up to TWO documents. 

Please note:

  • We would appreciate receiving a copy of your comments in electronic form (preferably Microsoft Word format).  This helps us to more efficiently collate and analyse comments. Please also specify the exposure draft number and title in your electronic file. 

  • Tell us on whose behalf you are making the comments (for example on behalf of a group or an entity).

  • We intend publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 1993 also applies.

  • If you have an objection to the release of any information contained in your comments, we would appreciate you identifying the parts of your comments to be withheld, and the grounds under the Official Information Act 1982 for doing so (for example, that it would be likely to unfairly prejudice the commercial position of the person providing the information).