This 9th Colloquium brings together global thought leaders to discuss the “Mind the Gap” project launched by The Public Interest Oversight Board (PIOB) and engage with stakeholders to stimulate an exchange of views around the public interest in standard-setting and narrow the expectation gap.
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.
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.
