The International Ethics Standards Board for Accountants (IESBA) today released final revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) to further increase the Code’s robustness and expand its relevance in a world being fundamentally reshaped by rapid technological advancements and accelerating digitalization.

The revisions will guide the ethical mindset and behavior of professional accountants in both business and public practice as they take advantage of the opportunities created by technology and adapt to new technology. Developed to remain relevant and applicable in the ever-evolving landscape of technology transformation, the revisions apply to the use of any technology, including to the extent possible, future technologies.

“Technological innovation is transforming how work is performed and how professional services are delivered as well as enabling new services in ways never before imagined,” said Ms. Gabriela Figueiredo Dias, IESBA Chair. “It is crucial and in the public interest that we provide strong, clear and principles-based standards to equip professional accountants around the world in navigating the ethical risks and challenges brought on by technology.”

The revisions, which were informed by extensive fact-finding and stakeholder outreach:

• Strengthen the Code in guiding the mindset and behavior of professional accountants when they use technology.
• Provide enhanced guidance fit for the digital age in relation to the fundamental principles of confidentiality, and professional competence and due care, as well as in dealing with circumstances of complexity.
• Strengthen and clarify the International Independence Standards (IIS) by addressing the circumstances in which firms and network firms may or may not provide a technology-related non-assurance service to an audit or assurance client.

The revisions to the IIS will be effective for audits and reviews of financial statements for periods beginning on or after December 15, 2024. The other revisions to the ethics provisions of the Code will be effective as of December 15, 2024. Early adoption is permitted.

About the IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information. Along with the International Auditing and Assurance Standards Board, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.

The International Ethics Standards Board for Accountants (IESBA) today released its Proposed Strategy and Work Plan, 2024-2027: Towards a More Sustainable Future: Advancing the Centrality of Ethics for public comment.  

The proposed strategy and work plan sets out the IESBA’s vision, strategic drivers and themes to guide its actions over the next strategy period of 2024-2027, as well as a number of topics the IESBA has identified as potential new work streams for the period.

“Ethics plays a central and crucially important role in advancing the public interest regardless of the external environment and the area or field of professional endeavor,” said IESBA Chair Gabriela Figueredo Dias. “From the continuing pervasive impact of technological advancements to the exponential growth in the supply of sustainability information, our aim in the coming years is to develop global ethics and independence standards that guide ethical behavior and underpin public trust in information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.”

The proposed strategy recognizes the public commitment the IESBA has made to developing timely ethics (including independence) standards for sustainability reporting and assurance to meet the increasing needs of investors, customers, workers, government agencies and other stakeholders for sustainability information.

While the International Code of Ethics for Professional Accountants (including International Independence Standards) has been significantly strengthened in recent years, the IESBA believes it is important to continue to evolve the Code with developments in business and the external environment to maintain its robustness and relevance, a need further emphasized by continuing corporate failures around the world that erode public trust in the accountancy profession.

Among other actions to achieve its strategic vision, the IESBA plans to devote significant efforts to expanding and strengthening its working relationships with a wide range of stakeholders. Additionally, the IESBA plans to continue to strengthen its coordination with its sister Board, the International Auditing and Assurance Standards Board (IAASB), as well as other international and national standard setters, to enhance the Code’s interoperability with reporting and assurance standards within the financial and sustainability reporting ecosystems.

The IESBA invites stakeholders to submit their responses by July 7, 2023.

About the IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information. Along with the International Auditing and Assurance Standards Board, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.

These technology-related revisions will guide the ethical mindset and behavior of professional accountants in both business and public practice as they take advantage of the opportunities created by technology and adapt to new technology. Developed to remain relevant and applicable in the ever-evolving landscape of technology transformation, the revisions apply to the use of any technology, including to the extent possible, future technologies. 

The revisions, which were informed by extensive fact-finding and stakeholder outreach:

the IESBA held four global roundtables to obtain input that will help shape the development of new ethics and independence standards for sustainability reporting and assurance. 

The International Ethics Standards Board for Accountants (IESBA) is saddened by the untimely passing of Brian Friedrich, a long-term board member, and friend to many.

Born and raised in Western Canada, Brian was a significant contributor to the IESBA’s work, including leading several initiatives and global outreach. He had an infectious energy in promoting the importance of education and ethics for professionals worldwide. Committed to inclusive and collaborative discourse, he always challenged colleagues to think about issues in fresh and innovative ways, especially in his role as Chair of the Technology Working Group.  

He lived life – both personally and professionally – on his own terms, always pushing boundaries and questioning arbitrary conventions.  His commitment to ethics and the public interest was unwavering, and his perceptive nature and intelligence played a significant part in promoting IESBA’s mission and elevating the role of ethics in the global accountancy profession.

Above all, Brian was a trusted friend to his fellow Board members and IESBA Staff, who will all miss him greatly. His warm personality and friendship will stay with his colleagues and friends, and his passion will continue to inspire.

The thoughts and condolences of the IESBA community are with Brian's wife and professional partner, Laura, and their family during this difficult time.

A celebratory memorial for Brian is being arranged. In lieu of flowers, the family requests that donations be made to your local Society for the Prevention of Cruelty to Animals or your local Heart and Stroke Foundation.

The International Ethics Standards Board for Accountants and the International Auditing and Assurance Standards Board applaud the recent announcement by the International Sustainability Standards Board (ISSB) that final decisions for all technical content related to ISSB's inaugural sustainability standards have been made and that the ISSB is entering the final stages of the standards development process ahead of an expected issuance at the end of Q2 2023.

We echo the recent statement of support from the International Organization of Securities Commissions (IOSCO) and appreciate IOSCO's encouragement for our boards’ work to develop standards by the end of 2024. The IOSCO statement is a timely reminder that providing the necessary assurance and ethics standards is essential to complete the sustainability reporting and assurance standards infrastructure. We will continue to work closely with all parties as we develop our sustainability standards, which we will discuss at our respective March meetings.

The International Ethics Standards Board for Accountants (IESBA) today released final revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to address holistically the various independence considerations in an audit of group financial statements. The revisions also deal with the independence and other implications of the changes made to the definition of an engagement team in the Code to align with changes to the definition of the same term in the International Auditing and Assurance Standards Board’s (IAASB) International Standards on Auditing (ISAs) and International Standards on Quality Management (ISQMs).

“Group audits play a fundamental role in safeguarding the integrity of, and public trust in, the financial markets,” said Ms. Gabriela Figueiredo Dias, IESBA Chair. “For a long time, there was a vacuum in international standards addressing the independence of audit firms and individuals involved in group audits, leading to uncertainty and inconsistent practice around the world. This standard effectively closes that gap and responds in a timely manner to a public interest need for robust and clear requirements for independence in this important area.” 

Among other matters, the revisions:

• Strengthen and clarify the independence principles that apply to:
  • Individuals involved in a group audit, including those within, or engaged by, firms that audit components within a group.
  • ​​​​​​​Firms engaged in the group audit, including firms within and outside the group auditor firm’s network.
• ​​​​​​​Specify the need for, and content of, appropriate communication on independence matters between the group auditor firm and component auditor firms participating in the group audit.
• More explicitly set out the process to address a breach of an independence provision at a component auditor firm, reinforcing the importance of transparency and appropriate communication with those charged with governance of the group.
• Amend the definitions of the terms “engagement team” and “audit team” in the Code to recognize the different and evolving engagement team structures, and address the implications of those definitional changes.
• Provide guidance to facilitate the determination of who is included in an engagement team or an audit team.
• Revise the definitions of a number of existing terms and establish new defined terms with respect to independence in a group audit context.

​​​​​​​The development of the proposals has benefited from close coordination with the IAASB’s group audits and quality management projects.

The pronouncement will be effective for audits of financial statements and group financial statements for periods beginning on or after December 15, 2023, with early adoption permitted.

Global Webinar and Other Implementation Support

The IESBA will hold a global webinar on April 18, 2023 from 9:00 to 10:00 am Eastern Time, during which members of Task Force will explain the key revisions to the Code. Click here to register.

The recording of the webinar and other supporting materials, such as an IESBA Staff publication on Frequently Asked Questions, will be available on the IESBA’s website in due course.

These revisions to the Code Relating to the Definition of Engagement Team and Group Audits address holistically the various independence considerations in an audit of group financial statements.