The members of the IESBA, including the Chair and Deputy Chair, are appointed by the IFAC Board on the recommendation of the Nominating Committee and with the approval of the PIOB. The appointment as Deputy Chair does not imply that the individual concerned is the Chair-elect.
The IESBA has 18 members comprising practitioners and non-practitioners[1] of whom no more than nine shall be practitioners and no less than three shall be public members.[2] One of those public members would preferably be a specialist in business ethics. A public member is an individual who satisfies the requirements of a non-practitioner and is also expected to reflect, and is seen to reflect, the wider public interest. Not all non-practitioners are therefore eligible to be public members. The three public members may be members of IFAC Member Bodies.
The selection process is based on the principle of “the best person for the job;” the primary criterion being the individual qualities and abilities of the nominee in relation to the position for which they are being nominated. However, the selection process also seeks a balance between the personal and professional qualifications of a nominee and representational needs, including gender balance of the IESBA. Accordingly, consideration will be given to other factors including geographic representation, sector of the accountancy profession, size of organization, and level of economic development.
IESBA members may be accompanied at meetings by a technical advisor. A technical advisor has the privilege of the floor with the consent of the IESBA member he or she advises, and may participate in projects. Technical advisors are expected to possess the technical skills to participate, as appropriate, in IESBA debates and attend IESBA meetings regularly to maintain an understanding of current issues relevant to their role.
The IESBA may also include up to three observers, appointed at the discretion of the IFAC Board, in consultation with the PIOB. Observers may attend IESBA meetings, have the privilege of the floor, and may participate in projects. Observers are expected to possess the technical skills to participate fully in IESBA debates and attend IESBA meetings regularly to maintain an understanding of current issues.
The Chair of the IESBA Consultative Advisory Group (CAG) is expected to attend IESBA meetings, or to appoint a representative of a CAG member organization to attend. The Chair of the IESBA CAG, or appointed representative, has the privilege of the floor at IESBA meetings.
IESBA members are required to sign an annual statement declaring they will act in the public interest and with integrity in discharging their roles within IFAC. Nominating organizations of members of the IESBA and the employing organization of the chair of the IESBA (as applicable) are asked to sign independence declarations
[1] A non-practitioner is a person who is not a member or employee of an audit practice firm and, in respect of individuals who have been members or employees of such firms, there shall normally be a cooling-off period of three years, but that such period may, on a comply or explain basis, be reduced, provided that such a reduction shall not result in a cooling-off period of less than one year. Where an individual is proposed for appointment with less than a three year cooling-off period IFAC shall provide to the PIOB the reasons for the proposed appointment, which the PIOB shall, in line with its authority to approve all appointments to the IESBA, have the authority to accept or decline.
[2] While these sentences reflect changes approved to membership in 2011, the transition to the changes in membership will commence in 2013.