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John Selwood's Audit Clinic, best practice

In this edition, John tackles some tricky questions around the new FRC Ethical Standard.

Question

What is a PIE?

Answer

It is a Public Interest Entity. If you are asking me this question it certainly means that you do not audit any PIEs. If you did then you would know, believe me. PIEs are more fully defined in the glossary to the FRC Ethical Standard (ES). However, put simply, they are listed companies on an EU-recognised stock exchange, banks and insurance companies. They do not include what
some might consider to be public interest entities, such as big charities or other similar entities that might appear to be public interest, in a more general meaning of the term.
PIEs are important because their auditors are subject to a much more restrictive set of independence requirements in the FRC ES.

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