Firm Culture and Governance Dialogues is an IESBA publication designed to support global, dialogue-driven engagement on the organizational drivers of ethical behavior in accounting firms. Building on IESBA’s Viewpoints across eight core elements of firm culture and governance, the Dialogues invite firms, regulators, professional bodies, and other stakeholders to test ideas, share experience, and help shape a practical, principles-based global framework to strengthen ethical culture, public trust, and long-term resilience across all service lines.

IESBA’s snapshots provide short, non-technical overviews of IESBA projects. They explain the purpose, direction, and current focus in clear and accessible terms, alongside more detailed technical materials.

This Snapshot focuses on IESBA’s Firm Culture and Governance Project.

Q1. Why is the IESBA working on firm culture and governance?

Accounting firms and professional accountants play a critical public interest role in the global economy by fostering public trust in the financial and non-financial reporting ecosystem.

To meet these expectations, firms are increasingly addressing the need to build and sustain firm-wide ethical culture that supports a consistent, high level of ethical behavior across all service lines.

These efforts underscore an important observation that ethical failures within firms are rarely due to a lack of rules or standards alone. Often, they reflect deeper issues relating to the firm’s ethical culture.

In fact, extensive research demonstrates that ethical behavior in organizations is strongly influenced by firm culture, including elements such as leadership, governance, incentives, or accountability.

At present, there is no comprehensive global ethics baseline against which firms of different sizes and operating in different contexts can assess their ethical culture and governance practices across all activities.

Stakeholders have therefore expressed clear support for the IESBA to explore the development of a global, firm-level framework that complements the existing requirements in the IESBA Code - which focus primarily on individual professional conduct and independence requirements at individual and firm levels, rather than cultural or governance factors.

The Firm Culture and Governance (FCG) project responds to this public interest matter by examining how a global framework could support firms in strengthening the key elements that underpin a strong ethical culture.

Q2. What is the objective of the Firm Culture and Governance project?

The objective of the project is to develop a global culture and governance framework that can help firms build and sustain a strong ethical culture across the whole firm.

In the framework, the IESBA aims:

• To establish a global and consistent point of reference for firms to assess their practices on their ethical culture and governance practices
• For the framework to be principles-based, rather than prescriptive
• For it to be applicable to firms of different sizes and structures
• To promote long-term trust, ethical conduct, and the public interest, by complementing existing requirements

Q3. What has the IESBA done so far?

In 2024, a dedicated Working Group carried out research and outreach on accounting firm culture and governance and published a report identifying eight key interconnected elements that drive ethical culture in firms.

Based on this work, IESBA agreed to pursue a standard-setting project to develop a Firm Culture and Governance Framework comprising the eight elements (FCG Framework). The project also includes the development of non-authoritative guidance and other supporting materials or initiatives.

In June 2025, informed by stakeholder engagement that followed the publication of the report, including six global roundtables, IESBA agreed to develop:

• Guidance materials and other initiatives during 2025 and 2026; and
• A set of IESBA Viewpoints on each of the eight elements that drive ethical culture in firms to be used for further discussion with stakeholders in 2026.

This engagement will inform IESBA’s consideration, by June 2026, of how best to approach the development of the FCG Framework.

Q4. What are the IESBA Viewpoints?

IESBA concluded in December 2025 a set of Viewpoints that describe key characteristics of each of the eight elements of a FCG Framework. The Viewpoints:

• Summarize insights from research and stakeholder feedback
• Describe what ethical culture, principles, or other considerations could look like in practice
• Support dialogue and testing of the thinking going forward

The IESBA Viewpoints shared for engagement with stakeholders in 2026 are not the framework itself, but rather a tool to test, refine, and build consensus around what we expect, once completed, to be a powerful framework to underpin the overall resilience and success of the accounting sector and ultimately protect the public interest.

Q5. What are the eight elements of a Firm Culture and Governance Framework?

The eight elements that form the structure of an FCG Framework and that are covered by the IESBA Viewpoints are:

• Ethical leadership
• Oversight and governance
• Independent input
• Accountability across the firm
• Incentives and disincentives
• Open discussion and challenge
• Education and training
• Transparency

Together, these elements influence how ethical values are embedded into everyday decisions and behaviors within firms, helping to shape an organizational culture that prioritizes ethical values in decision-making at all levels and across all service lines of a firm.

Q6. What is the IESBA focused on in the first half of 2026?

The IESBA is taking a dialogue-driven, evidence-based approach to shaping its Firm Culture and Governance Framework and will be focused on in-depth, meaningful discussions on what an effective FCG Framework should entail.

The discussions will address issues such as:

• How a global and consistent baseline would help firms strengthen culture and governance across all service lines
• Whether a future framework should be part of the IESBA Code or available for voluntary adoption - and why
• Whether the IESBA Viewpoints are clear, workable, and proportionate, and which of them should become enduring principles (or what may be missing)

Q7. How can stakeholders engage and contribute to this work?

The engagement with stakeholders will be structured through the Firm Culture and Governance Dialogues initiative that will include:

• Targeted discussions and meetings at technical and strategic levels with firms, regulators, professional bodies, and other stakeholders
• Testing and refinement of the Viewpoints against real scenarios and experiences 
• Broader engagement through conferences, seminars, interviews, and ongoing communication

This engagement will inform the Board’s consideration of next steps.

Q8. What decisions will the IESBA consider in 2026?

By mid-2026, the IESBA expects to consider how best to take this work forward on the development of the FCG Framework, including:

• How the eight FCG elements should best be structured within a framework
• Which of the IESBA Viewpoints should evolve into principles integrated within the framework
• Whether such a framework should be positioned within the IESBA Code, or outside the Code and available for voluntary adoption

No decisions on how to approach the FCG Framework have been taken at this stage.

Annex: Further information and resources

Those interested in additional context, background, and technical details about the project may wish to refer to:

• Firm Culture and Governance Dialogues booklet

The booklet presents the Viewpoints on the eight elements of the Firm Culture and Governance Framework and sets out the objectives of the project and the dialogues planned for the first half of 2026.

• IESBA Briefing Note – IESBA Viewpoints on Firm Culture and Governance

Detailed background on the project, its objectives, the context, nature, and purpose of the IESBA Viewpoints and stakeholder engagement questions.

• Linkages between IESBA Viewpoints and ISQM 1

A paper explaining at a high-level how the IESBA Viewpoints relate to the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Quality Management 1 (ISQM 1), highlighting the linkages between the two as well as their differences such as their differing scopes and objectives.

• Firm Culture and Governance: Summary of Feedback from Global Roundtables

A summary of insights from six global roundtables held in New York, Melbourne, Brussels, Kuala Lumpur, and virtually for Africa and Latin America, involving more than 150 stakeholders from the regulatory, investor, standard-setting, firm, academic, and professional communities.

• Firm Culture and Governance Working Group – Final Report

Research, fact-finding, outreach, and early insights that informed the development of the FCG project, including the identification of the 8 fundamental elements of firm culture and governance.

• Organizational Culture and Behavior: A Synthesis of Academic Literature

A synthesis of academic research examining how organizational culture shape ethical behavior within organizations.

• IESBA website and social media channels

Regular updates on the Firm Culture and Governance project and the ongoing engagement with stakeholders. IESBA launches Firm Culture and Governance Viewpoints as it begins Asia outreach

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting high-quality, international ethics (including independence) standards as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board (IAASB), the IESBA is part of the International Foundation for Ethics and Audit (IFEA). The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.

• IESBA launches its Viewpoints on Firm Culture and Governance, initiating a six-month global dialogue on the drivers of ethical culture in accounting firms.
• The launch coincides with IESBA’s Asia outreach to Singapore, Malaysia and Hong Kong SAR, engaging with regulators, professional bodies, firms, investors, CFOs and others on priorities shaping the profession in 2026.
• Discussions will focus on IESBA’s strategy for 2028–2031, sustainability-related ethics standards, lessons from the implementation of existing standards, firm culture and governance, private equity investment, technology and emerging ethical risks and trends.

The International Ethics Standards Board for Accountants (IESBA) today began a high-level outreach visit to Singapore, Malaysia and Hong Kong SAR, marked by the launch of its Viewpoints on eight fundamental elements of an ethical culture and governance framework for accounting firms. Learn more about the Firm Culture and Governance Project here.

The IESBA Viewpoints are designed to support global dialogue on key characteristics of elements such as ethical leadership, governance or incentives which influence ethical culture and behavior in accounting firms, informing the planned development of a global baseline.

Key topics on the agenda also include international and regional standard-setting developments, sustainability-related standards, lessons from the implementation of the Responding to Non-compliance with Laws and Regulations (NOCLAR) standard and the restructured IESBA Code, as well as technology-driven change and private equity investment in accounting firms.

During the visit, IESBA will engage with a broad range of stakeholders, including regulators, professional accountancy organizations, standard setters, accounting firms, investors, chief financial officers, professional accountants, authorities responsible for market integrity and the prevention of financial crime and others.

The outreach reflects Asia’s central role in the adoption and implementation of international ethics standards and the region’s importance to the global financial system and to IESBA’s work.

“Asia is at the forefront of many of the developments reshaping the accounting profession and the broader financial sector — from sustainability and technology to evolving business models and regulatory expectations,” said Gabriela Figueiredo Dias, Chair of IESBA. “This outreach is an opportunity to listen, exchange views and deepen engagement with stakeholders in a leading region who are shaping how ethics is applied in practice across the region.”

Firm Culture and Governance Viewpoints and Dialogues

The IESBA Viewpoints on Firm Culture and Governance, published today, respond to growing recognition that ethical behavior is shaped not only by rules and individual conduct, but also by organizational factors such as leadership, governance, accountability, incentives, openness and transparency, among others.

The Viewpoints are not a proposed framework. They are intended to stimulate reflection, learning and engagement, and to support informed dialogue on what a future global framework on firm culture and governance should look like.

Their publication marks the start of the Firm Culture and Governance Dialogues, a six-month global engagement initiative through which IESBA will test, refine and further develop its thinking in close consultation with stakeholders.

Supporting materials released include:

• A booklet presenting the Viewpoints on the eight elements of the Firm Culture and Governance Framework and outlining the objectives of the project and the dialogues planned for the first half of 2026;
• A Snapshot providing a short, non-technical overview of the project, the Viewpoints, upcoming discussions and key decisions expected in 2026;
• A Briefing Note setting out the Viewpoints, their context and objectives, engagement questions and next steps; and
• A high-level paper outlining linkages between the Viewpoints and International Standard on Quality Management 1 (ISQM 1).

“Trust has become a defining strategic asset. Organizations are increasingly judged not only on technical excellence or commercial success, but also on the values they demonstrate, the judgments they exercise under pressure, and the confidence they earn from markets, regulators, investors and society at large,” said Ms. Figueiredo Dias. “The IESBA Viewpoints are intended to support reflection and dialogue on principles that can reinforce trust and resilience.”

Asia outreach: meetings across Singapore, Malaysia and Hong Kong

During the January outreach, IESBA will engage with stakeholders across Singapore, Malaysia and Hong Kong, including professional accountancy organizations, regulators, standard setters, accounting firms, investors, CFOs, professional accountants, public authorities responsible for market integrity and financial crime prevention and others.

Singapore | 12–13 January 2026

The outreach begins in Singapore with meetings at the Institute of Singapore Chartered Accountants (ISCA), covering IESBA’s strategic direction, sustainability reporting, lessons from the implementation of NOCLAR and the restructured IESBA Code, and the IESBA Viewpoints on Firm Culture and Governance. A dedicated engagement with Chief Financial Officers will address ethical challenges facing professional accountants in business or others who operate in this or equivalent role.

IESBA will meet with the Association of Chartered Certified Accountants to discuss current priorities and projects.

On 13 January, IESBA will participate in a full-day program hosted by the Accounting and Corporate Regulatory Authority (ACRA), featuring discussions on IESBA’s strategy and key projects, panels on firm culture and governance and private equity investment in accounting firms, a fireside chat on technology and innovation, and further exchanges on lessons from implementation of IESBA Standards.

Malaysia | 15–16 January 2026

In Malaysia, IESBA will meet with the Malaysian Institute of Accountants (MIA) to discuss IESBA’s strategic direction, the adoption of the IESBA Code, as well as the challenges and ethical pressures facing the profession.

IESBA will also meet with the Securities Commission Malaysia (MY SECCOM), with discussions focusing on firm culture and governance, sustainability-related ethics, NOCLAR and emerging risks affecting trust and market integrity. 

Dedicated sessions hosted at MY SECCOM, will include discussions with The Malaysian Institute Of Certified Public Accountants, the Confederation of Asian and Pacific Accountants and Institutional Investors Council, as well as accounting firms and professional accountants in business to discuss national and regional priorities, as well as IESBA’s work plan, including the IESBA Viewpoints on Firm Culture and Governance and the future development of a practical global Framework, sustainability reporting, NOCLAR and other topical issues and trends.

Hong Kong SAR | 19–21 January 2026

The final leg of the visit will take place in Hong Kong SAR and will include a full-day program with the Hong Kong Institute of Certified Public Accountants (HKICPA), as well as meetings with the Securities and Futures Commission (SFC), the Accounting and Financial Reporting Council (AFRC), the Independent Commission Against Corruption (ICAC) and the Asian Corporate Governance Association (ACGA).

Discussions will address IESBA’s priorities going forward, the IESBA Code, the Viewpoints and the broader Firm Culture and Governance Project, and the role of ethics and professional judgment in combating financial crime.

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting high-quality, international ethics (including independence) standards as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board (IAASB), the IESBA is part of the International Foundation for Ethics and Audit (IFEA). The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.

Media Contacts:

Rui Peres Jorge 
Director of Strategic Communications 
International Ethics Standards Board for Accountants (IESBA) 
ruiperesjorge@ethicsboard.org | Direct: +351 966-301-383

David Johnson 
Senior Manager
IESBA Communications
davidjohnson@ethicsboard.org | Direct: +1 (212) 471-8732

This paper explains at a high level the linkages, as well as the key differences, between the IESBA Firm Culture and Governance (FCG) viewpoints (IESBA viewpoints) accepted by the Board at its December 2025 meeting and ISQM 1. It demonstrates the mutually supportive nature of the IESBA viewpoints and ISQM 1 while recognizing the distinctions in their objectives, scope, output and focus.

This briefing note outlines key viewpoints on firm culture & governance as part of its ongoing project to promote high ethical standards in accounting firms worldwide. It introduces eight foundational elements, designed to guide firms in building and sustaining a strong ethical culture.

In her New Year message, IESBA Chair Gabriela Figueiredo Dias affirms the Board's commitment to supporting stakeholders in navigating uncertainty. Robust ethical baselines and principles are even more important in these times.

In her message, Ms. Dias highlights the IESBA’s commitment to supporting its stakeholders in upholding trust and the public interest, and looks ahead to the work the IESBA is carrying forward, including continued engagement on Firm Culture and Governance, the rollout of the SMART framework to strengthen how the IESBA supports its stakeholders and delivers more value, and a sustained focus on the adoption and implementation of recently issued standards.

The IESBA Focus series continues with a video spotlighting the Firm Culture and Governance project — a key initiative exploring how to develop a framework that supports the cultures and governance practices that shape ethical behaviour.

In this conversation, IESBA Vice-Chair @Channa Wijesinghe GAICD, FCPA, FCA explains the decisions taken at the IESBA December Board meeting and shares new information on the upcoming release of a series of IESBA Viewpoints, as well as the “Firm Culture and Governance Dialogues” to be announced in January 2026, which will shape our engagement with stakeholders.

"Decoding Ethics: Building trust in a tech-driven world" is a podcast of the International Ethics Standards Board for Accountants (IESBA) exploring the technological and ethical risks and opportunities shaping the future of accounting and finance. Through in-depth conversations with global thought leaders, Decoding Ethics helps professionals navigate change and lead with integrity in a tech-driven world.

Episode 3 -  AI and Ethics in Accounting: The Need for Human Judgment

This episode explores the ethical implications of artificial intelligence in the accounting profession. Jeanne Viljoen is joined by Alistair Brisbourne and Sarah Lane from the ACCA Policy and Insights team to discuss real-world dilemmas finance professionals are beginning to face.

Drawing on insights from ACCA’s recent AI Monitor report, the conversation examines how AI is already embedded in everyday accounting tools, the ethical risks this creates, and why professional judgment remains essential. The discussion also highlights practical guidance for navigating issues such as data confidentiality, automation bias, and the governance challenges organizations face when adopting AI.

Episode 2 - Quantum is Coming!

Quantum computing is no longer science fiction. With experts predicting operational quantum computers as early as 2029, the implications for data security, encryption, and professional trust are rapidly becoming very real.

In this episode of Decoding Ethics, host Jeanne Viljoen is joined by Clinton Firth, a cybersecurity and digital trust partner at PwC whose experience spans national security, intelligence, and enterprise risk, to unpack what quantum computing actually is—and why it matters now for the accounting profession.

Episode 1 - How can ethics keep pace with innovation?

In the first episode of "Decoding Ethics: Building trust in a tech-driven world", recorded live at the inaugural IESBA Ethics & Independence Conference in Lisbon, IESBA brings together leaders from EY, KPMG UK, and Responsible Intelligence to explore the impact of AI on audit and accounting, the importance of principle-based standards, and why trust is essential for technology to drive sustainable innovation in a tech-driven world.

Decoding Ethics is available on Spotify, Apple Podcasts, and YouTube.

Hong Kong has affirmed its regional and global leadership in sustainable finance, green innovation, and ESG services. Beyond its well-developed financial services sector and advanced capital markets infrastructure, one of Hong Kong’s greatest strengths lies in the readiness of its accountancy profession to meet investors’ and other stakeholders’ needs for trustworthy information and advice, and its adherence to rigorous, internationally-aligned standards.

In this regard, the HKICPA’s vision and leadership deserve recognition for placing sustainability at the core of its strategy – an approach that has recently translated into another major milestone: Hong Kong is among the first jurisdictions to adopt the international ethics standards for sustainability.

Despite the ongoing global debate on the benefits and costs of building sustainable economies, a focus on sustainability is becoming the new normal for business. It is therefore essential that trust in sustainability information keeps pace with this transition.

Building such trust is no easy task. We are still in the early years of a global, long-term effort towards building capabilities and capacity. With sustainability information being complex and forward-looking, and often based on subjective judgements, there is an increased risk of bias and manipulation, making ethical standards and guidance indispensable. Ethics helps professionals identify and address threats to their integrity, objectivity, professional competence, and independence, thereby enhancing the quality and reliability of the information they prepare or assure.

In January, the International Ethics Standards Board for Accountants (IESBA) issued a comprehensive set of global ethics standards for sustainability, encompassing: The International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA); enhanced ethical provisions for sustainability reporting; and a new standard on Using the Work of an External Expert.

These standards were developed in coordination, and jointly launched, with the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Sustainability Assurance (ISSA) 5000. By adopting the IESBA’s standards in October, the HKICPA has taken an important step to ensure a consistent ethical foundation for sustainability reporting and assurance at a critical time.

Standards tailored to professionals’ needs

Recognizing the public interest in trustworthy sustainability information, the IESBA holds that sustainability reporting and assurance must be underpinned by the same high standards of ethical behaviour and independence that apply to financial reporting and audit.

By building on the robust principles of the existing IESBA Code, the IESBA has delivered a framework that can be confidently accepted and applied worldwide – while minimizing the learning curve for those already familiar with global ethics and independence standards for financial reporting and assurance.

At the same time, the standards reflect the distinctive nature of sustainability assurance engagements, ensuring their practical relevance. This is evident in the use of appropriate terminology and illustrative examples that make the standards easier to apply, as well as in provisions addressing real-world challenges practitioners may face, such as when determining to use the work of other practitioners and external experts in specialized sustainability fields (e.g. emissions measurement), or when assurance work needs to be performed on information drawn from the entity’s value chain.

Read this article on HKICPA's website here.

Scalability and proportionality are intrinsic to the ethics framework. In particular, the value-chain provisions take a less stringent approach to independence with respect to assurance of information from the client’s value chain compared to information that lies within its operational boundary. Other examples of scalability and proportionality include differentiated provisions for public-interest entities compared with other entities, and limiting the application of the International Independence Standards in the IESSA to sustainability assurance engagements with the same level of public interest as audits of financial statements.

Unprecedented implementation support

The HKICPA’s globally-aligned Sustainability Ethics Standards will become effective in December 2026, with the independence provisions applicable to assurance at a value-chain component taking effect in July 2028 – allowing more time for implementation with respect to the newer area of assurance of value-chain information.

Preparers and assurance practitioners will not be left to navigate implementation alone. The IESBA has made it a strategic priority to slow down new standard-setting and focus on supporting global adoption and implementation of recently issued standards, including the Sustainability Standards.

This unprecedented support programme includes, among others:

• Practical tools such as Q&As, technical overviews, and other explanatory materials to promote consistent application.
• Close coordination with the IAASB, IFAC, ISSB, IOSCO, UNCTAD, and others to strengthen capacity across jurisdictions.
• Enhanced stakeholder engagement to identify implementation challenges and provide timely support, including through an advisory group of experts called IESSA Implementation Monitoring Advisory Group.

The IESBA remains determined to contribute to the development of sustainable and resilient financial markets and economies – foundations that can only thrive when underpinned by clear, consistent, and effective ethical conduct.

Expected publication Date: 2025-12-15