Kim Gibson became a member of the International Ethics Standards for Accountants in January 2016.

Ms. Gibson is the global head of independence for Grant Thornton International and a partner with Grant Thornton LLP in the US. She is responsible for providing member firms with policy, guidance and training relating to independence matters, oversight of the automated global independence system used to monitor financial interests and the oversight of the international relationship checking process designed to prevent the provision of prohibited non-audit services to an audit client and conflicts of interests.

Ms. Gibson is a Certified Public Accountant.

Andrew Pinkney is a director with PricewaterhouseCoopers International Limited, based in London, and has current responsibilities connected with independence matters for the PwC Network.

Mr. Pinkney is a member of the Institute of Chartered Accountants in England and Wales, with experience in audit and transaction support, and has an MBA from the University of Warwick (UK). He has been involved with the activities of the International Ethics Standards Board for Accountants, notably the development of the Code of Ethics for Professional Accountants, for more than ten years.

The IESBA Strategic and Operational Plan 2008-2009 sets out the activities of the IESBA for the period 2008 to 2009 following the completion of its current projects on independence and on improving the clarity of the IFAC Code of Ethics for Professional Accountants. The plan is set within the context of the overall strategy of IFAC.

A Questions and Answers (Q&A) publication intended to assist professional accountancy organizations and others as they adopt and implement the Code of Ethics for Professional Accountants issued in July 2009.

In This Issue:

1. IESBA Issues Revised Code of Ethics
2. Revisions Strengthen Independence, Clarify Requirements
3. Member Bodies and Firms Encouraged to Develop Implementation Plans
4. Resources Available to Support Adoption and Implementation of Revised Code
5. Ethics Board Launches Process for Developing 2010-2012 Strategic Plan
6. Tell Others About Ethics eNews

1. IESBA Issues Revised Code of Ethics

The International Ethics Standards Board for Accountants (IESBA) issued in July, following the approval and consideration of due process by the Public Interest Oversight Board, a revised Code of Ethics for Professional Accountants (the Code). The revised Code clarifies requirements for all professional accountants and significantly strengthens the independence requirements of auditors.

The Code is effective on January 1, 2011.

The full text of the revised Code can be accessed from the Ethics section of the IFAC online bookstore at www.ifac.org/Store.

2. Revisions Strengthen Independence, Clarify Requirements

The revisions to Code of Ethics for Professional Accountants (the Code) include the following changes, among others, to strengthen the Code's independence requirements:

• Extending the independence requirements for audits of listed entities to all public interest entities;
• Requiring a cooling-off period before certain members of the firm can join public interest audit clients in certain specified positions;
• Extending partner rotation requirements to all key audit partners;
• Strengthening some of the provisions related to the provision of non-assurance services to audit clients;
• Requiring a pre- or post-issuance review if total fees from a public interest audit client exceed 15% of the total fees of the firm for two consecutive years; and
• Prohibiting key audit partners from being evaluated on or compensated for selling non-assurance services to their audit clients.

Also included within the revisions are changes in the drafting conventions used in the Code. These changes, which include the use of the word "shall," present the Code's requirements in clearer, more precise language.

3. Member Bodies and Firms Encouraged to Develop Implementation Plans

Given the effect the revisions to Code of Ethics for Professional Accountants (the Code) will likely have on professional practice, and the fact that they will go into effect less than 18 months from now, member bodies, firms, and other relevant stakeholders are encouraged to develop plans for implementing the revised Code by the effective date of January 1, 2011.

Issues to consider while developing implementation plans would include the implications of:

• Expanded partner rotation requirements;
• New independence requirements for public interest entity audit clients; and
• Expanded requirements related to the provision of non-assurance services to audit clients

4. Resources Available to Support Adoption and Implementation of Revised Code

The IESBA has developed a number of resources to support adoption and implementation efforts for the revised Code of Ethics for Professional Accountants (the Code).

These materials include the following:

• A high-level overview of the Code
• A detailed presentation slide package and speaking notes addressing the independence requirements contained in section 290
• A presentation slide package and speaking notes addressing the independence requirements for audits of public interest entities
• Templates, both high-level and detailed, to help member bodies/firms analyze differences between the requirements in their jurisdiction and the requirements of the revised Code
• Comparisons, both high-level and detailed, to the existing Code
• A short paper describing the changes from the existing Code
• An article for member bodies describing the process of developing the Code, highlighting some key changes and emphasizing the need to start the process of implementation

All of these support materials will be available soon in the Ethics section of the IFAC website (www.ifac.org/Ethics).

5. Ethics Board Launches Process for Developing 2010-2012 Strategic Plan

In April 2009, the IESBA launched a strategic review to develop the 2010-2012 Strategic and Operational Plan.

The IESBA's terms of reference and due process require the strategic review to include a formal survey of key stakeholders' views about issues that they believe should be addressed in the immediate future. The IESBA conducted a short survey to solicit these views in July. The IESBA will consider this feedback as it develops its Strategic Plan which will be exposed for public comment.

To view the 2007-2009 Strategic and Operational Plan, please visit the Ethics section of the IFAC online bookstore at www.ifac.org/Store.

6. Tell Others About Ethics eNews

The IESBA issues regular eNews updates to keep you current on its activities and recent publications. Please forward this eNews to any interested colleagues and advise them that they can subscribe to receive this eNews by following these simple steps:

1. Go to the eNews sign-up page at https://www.ifac.org/E-news/index.tmpl.
2. Enter your email address, name, and country.
3. Select "Ethics eNews" from the checklist, as well as any other eNews alerts that you would like to receive.

The next issue of the Ethics eNews will be delivered directly to you in your inbox.

For more information about any of the items mentioned above or other information about the IESBA, please contact: communications@ifac.org.

About the IESBA and IFAC

The IESBA develops ethical standards and guidance for use by professional accountants. It encourages member bodies of IFAC to adopt high standards of ethics for their members and promotes good ethical practices globally. The Public Interest Oversight Board oversees the activities of the IESBA and, as one element of that oversight, establishes its due process and working procedures.

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

IESBA Staff Issues Materials to Support Adoption and Implementation of the Code

The International Ethics Standards Board for Accountants (IESBA) issued in July, following the approval and consideration of due process by the Public Interest Oversight Board (PIOB), a revised Code of Ethics for Professional Accountants (the Code).

The Code becomes effective on January 1, 2011.

The full text of the revised Code can be accessed at the Ethics section of the IFAC online bookstore at www.ifac.org/Store.

Recognizing the effect these changes will have on professional accountants in practice and business, the IESBA staff has developed a range of materials to facilitate adoption and implementation of the Code. The documents are non-authoritative and are issued for information.

The Adoption and Implementation Materials

The materials include an overview of the revised Code, additional guidance about the independence requirements and a tool to assist jurisdictions in comparing the revised Code to their existing Code.

These materials include:

• PowerPoint Presentations: High level and in-depth that can be used to explain the content of the Code
• Overview of Independence Requirements: A short document providing an overview of the independence requirements contained in Section 290 of the Code of Ethics relating to rotation, cooling off period, provision of non-assurance services, fees and compensation and evaluation policies
• Comparisons: A high level and more detailed comparison that will help people understand the differences between the July 2009 Code and the previous Code
• Template: A comparison template containing the complete text of the Code which can assist individuals who want to understand how the provisions in their jurisdiction match up to the Code.

All of these support materials can be accessed at the Resources section of the IESBA website at www.ifac.org/Ethics/Resources.php.

For more information about any of the items mentioned above or other information about the IESBA, please contact: communications@ifac.org.

The IESBA develops ethical standards and guidance for use by professional accountants. It encourages member bodies of IFAC to adopt high standards of ethics for their members and promotes good ethical practices globally. The Public Interest Oversight Board oversees the activities of the IESBA and, as one element of that oversight, establishes its due process and working procedures.

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 123 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.