In this eNews you will find:

• Highlights from our September meeting
• Release of the 2025 handbook
• Plans for Q4 2025
• Coordination with IESBA
• Key dates for this quarter

Highlights from Our September Meeting

During our September 2025 meeting, we approved narrow-scope amendments to our standards arising from the IESBA’s Using the Work of an External Expert Project.
Other topics we discussed during our meeting include:

• ISRE 2410 (Revised), Review of Interim Financial Information Performed by the Independent Auditor of the Entity (Project Stage: Exposure Draft Development) – We discussed selected sections of the standard, including proposed drafting and initial direction on the nature and extent of the auditor’s work effort relating to going concern and considerations relating to group interim review engagements.
• Audit Evidence and Risk Response (Project Stage: Exposure Draft Development) – We discussed key insights from outreach activities undertaken by the project team. We also discussed several specific topics, including technology-related matters and the auditor’s work on internal controls.
• ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures Post Implementation Review – We discussed the project team’s plan for a post-implementation review of our standard on accounting estimates and key findings from the team’s initial information gathering.
• Technology – We discussed updates to the Catalog of Issues and Possible Actions and progress on the Technology Quality Management initiative, including information gathering through a series of eight international roundtables (see Looking Ahead section below).

Recordings of the September 2025 meeting are available on our YouTube channel and more information on our projects can be found on the Latest on Our Projects web page.

2025 Handbook

On September 17, we released our 2025 Edition of the Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements. It is available as a PDF download; print copies can be ordered via our website.

Looking Ahead: Our Plans for Q4 2025

Technology Quality Management 
As part of our Technology Quality Management initiative, we have begun a series of eight roundtables around the world to gather stakeholder insights on:

• How emerging technologies, including AI, are being integrated into practice.
• How our quality management standards are being applied in a rapidly evolving environment.
• How firms are approaching governance and oversight of emerging technologies used in engagements.

The first roundtable was held in Brussels on September 30 with others to follow in October and November.

ISSA 5000 on Sustainability Assurance
In Q4, we will continue to support the adoption and implementation of ISSA 5000, our sustainability assurance standard. This includes:

• Webinar series: We are hosting a three-part global webinar series designed to assist our stakeholders as they adopt and implement ISSA 5000. The webinars will be held in October and will cover:
  • Foundational Principles and Concepts (October 1 and 2);
  • Engagement Planning, Risk Assessment & Response (October 7 and 8); and
  • Concluding and Reporting on Sustainability Assurance Engagements (October 14 and 15).

Register here or watch the recordings here at our ISSA 5000 web page;

• FAQ on materiality; and
• Updating information on jurisdictional adoption.

Access published resources on the dedicated ISSA 5000 web page.

Coordination with IESBA

Although IAASB and IESBA are independent boards under IFEA, with their own remits and unique needs, our standard-setting actions have a collective impact on the external reporting ecosystem. Given this collective impact, we continuously maintain and enhance our coordination with IESBA—in the traditional areas of audits and reviews of financial statements, as well as the area of sustainability. This includes coordination at the board and staff levels.

Currently, we are closely coordinating with IESBA on the following projects:

• Strategy and Work Plan: We will launch a joint stakeholder survey in early 2026 as a first step in an aligned strategic planning process for developing the Boards’ strategies and work plans for 2028–2031.
• IESBA’s Firm Culture and Governance project: We are working closely to make sure this project is aligned with our standard on quality management at the firm level (ISQM 1). For example, during our June and September meetings, IESBA staff joined us to share updates on progress and receive feedback from IAASB members.

Key Dates for this Quarter

• On October 21 and 22 the Stakeholder Advisory Council (SAC) will meet in New York. You can find more information on the SAC meetings web page. This meeting will also livestream in our YouTube channel. 
• On November 4, we will hold a joint Jurisdictional Standard Setters Meeting with IESBA.

In this eNews you will find:

• Highlights from our December meeting
• Our focus on technology
• Our plans for Q1 2026
• Key dates for this quarter

Highlights from Our December Meeting

During our December 2025 meeting, the IAASB and IESBA approved a joint stakeholder survey to inform the development of the IAASB and IESBA’s respective Strategies and Work Plans for 2028–2031. In addition, we approved (i) the IAASB Approach Statement for maintaining the ISA for LCE, (ii) the first maintenance project proposal for the ISA for LCE and (iii) the ISA 540 (Revised) post-implementation review survey.

Other topics we discussed during our meeting included:

• Audit Evidence and Risk Response (Project Stage: Exposure Draft Development) – We discussed several specific topics to inform the drafting of proposed ISA 330 (Revised), ISA 500 (Revised) and ISA 520 (Revised). At our March 2026 meeting we will discuss a first full draft of these standards.
• ISRE 2410 (Revised), Review of Interim Financial Information Performed by the Independent Auditor of the Entity (Project Stage: Exposure Draft Development) – We discussed a full draft of proposed ISRE 2410 (Revised) and we anticipate voting to approve the exposure draft at our March 2026 meeting.
• ISA 500 Series (Project Stage: Project Proposal) – We discussed key insights from outreach and the draft project proposal, including the in-scope standards for this project.
• Technology Quality Management – We discussed key insights from a six-month information-gathering phase, including finding from eight roundtables held around the world, which informed the decision to develop non-authoritative materials as the way forward for this project. At our March 2026 meeting, we will consider a proposed action plan, including the initiative’s objective, scope, themes/topics to be addressed, and the nature, scope, and timing of anticipated deliverables.

Recordings of the December 2025 meeting are available on our YouTube channel and more information on our projects can be found on the Latest on Our Projects web page.

Our Focus on Technology

In light of the changing environment and the increased use of emerging technologies by firms and entities, we developed our Technology Position in 2024. The Technology Position details how we consider the impact of technology in standard setting and other related activities, and recognizes the transformative potential of technology in enhancing audit and assurance quality. It also clarifies our commitment to actively facilitate and, where appropriate, encourage the appropriate use of technology in engagements and systems of quality management. As part of this initiative, we developed a gap analysis to identify our potential actions, including possible standard setting opportunities. The findings of this analysis are captured in the Catalog of Issues and Possible Actions, which will continue to be reviewed and updated as needed.

Currently, we have three projects focused on technology:

• Technology Quality Management – This project aims to support consistent and effective application of the quality management standards to emerging technologies.
• Audit Evidence and Risk Response – Among other matters, this project aims to facilitate, and where appropriate, encourage auditors' use of technology in obtaining audit evidence and evaluating its sufficiency and appropriateness.
• ISA 500 Series – This project aims to modernize our standards related to inventory and external confirmations to reflect the current business and audit environment, including the impact of technology use by entities, auditors and the organizations they interact with.

Looking Ahead: Our Plans for Q1 2026

Consultations

In Q1 2026 we plan to publish the following consultations:

• The joint IAASB-IESBA stakeholder strategy survey will be published mid-January with a 114-day comment period.
• A survey for the post-implementation review of ISA 540 (Revised), our standard on auditing accounting estimates, will be issued in mid-February for a 118-day comment period. The survey will gather feedback on the impact of ISA 540 (Revised).

ISSA 5000 on Sustainability Assurance

We will continue to support the adoption and implementation of ISSA 5000, our sustainability assurance standard. This includes an FAQ on materiality and updating information on jurisdictional adoption. Access published resources on the dedicated ISSA 5000 web page.

Key Dates for this Quarter

From March 16 to 19, the IAASB will meet in New York. The meeting agenda and meeting papers will be available on the IAASB website in the Meetings section in February. This meeting will also livestream on our YouTube channel.

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