The International Ethics Standards Board for Accountants (IESBA) welcomes the announcement by Australia's Accounting Professional & Ethical Standards Board (APESB) of the adoption of the IESBA’s Global Ethics Sustainability Standards. With this move, Australia becomes the first jurisdiction to formally embed ethics and independence standards for sustainability reporting and assurance into its national framework. 

Gabriela Figueiredo Dias, IESBA Chair, said:
“Australia’s leadership has sent a powerful signal: ethics and independence must be at the heart of how sustainability information is developed, assured, and trusted. This is more than a milestone, it’s the start of a global movement. As more jurisdictions follow, we’re helping to lay the ethical foundation around the world for a sustainability reporting system that serves the public interest, builds confidence, and drives meaningful change.”

Released in January 2025, the IESBA’s sustainability-related ethics and independence standards include the International Ethics Standards for Sustainability Assurance (IESSA), along with new provisions on sustainability reporting and the use of external experts. Together, they establish globally consistent expectations for ethical conduct and independence in sustainability reporting and assurance. 

For more on IESSA and implementation resources, click here.

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.

The International Auditing and Assurance Standards Board (IAASB) has revised International Standard on Auditing (ISA) 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. The updated standard responds to global scrutiny and stakeholder concern regarding the auditor’s role in detecting fraud. The revised standard clarifies the auditor’s responsibilities, emphasizes a fraud lens in the auditor’s risk identification and assessment and the appropriate responses to assessed risks, and provides greater transparency in the auditor’s reports of publicly traded entities.

In developing the revised standard, the IAASB undertook an extensive global consultation with regulators, users of financial statements, standard setters, and auditors across firm sizes and geographies. The revised standard’s structure incorporates scalability and proportionality to support consistent and effective application across a range of audit engagements.

“These revisions directly address core public interest concerns regarding fraud,” said IAASB Chair Tom Seidenstein. “By clarifying responsibilities, strengthening how auditors assess and respond to fraud risks, and enhancing transparency in reporting, the revised standard better supports high audit quality and delivers more decision-useful information to users of financial statements.”

“Stakeholders made it clear: achieving consistency was necessary, but not sufficient,” said Julie Corden, former IAASB member and Chair of the IAASB Fraud Task Force. “This standard represents a practical and meaningful shift in how auditors assess and respond to fraud risks.”

Key Enhancements in ISA 240 (Revised)

The standard incorporates the following elements:

• Clearer Auditor Responsibilities – Strengthens and clarifies what auditors are expected to do when addressing risks relating to fraud.
• Reinforced Professional Skepticism – Introduces new requirements to elevate the consistency and effective practice of professional skepticism across all stages of the audit.
• Sharper Fraud Risk Assessment – Requires a focused “fraud lens” when identifying and addressing risks, with stronger links to related standards.
• More Effective Fraud Responses – Establishes a new section with clearer, enhanced requirements to guide how auditors respond to identified or suspected fraud.
• Improved Transparency and Communication – Emphasizes timely communication with management and those charged with governance, with clearer disclosures in the auditor’s report.

The revisions also align with ISA 570 (Revised 2024), Going Concern, recognizing that fraud and financial distress are often interrelated risks that must be addressed together to bolster corporate transparency and resilience.

Effective Date and Resources
ISA 240 (Revised) becomes effective for audits of financial statements for periods beginning on or after December 15, 2026. To support implementation, the IAASB has published a fact sheet and Basis for Conclusions, available on its website here. A video series will follow in the coming weeks.

The IAASB encourages jurisdictions to consider early adoption of ISA 240 (Revised), ISA 570 (Revised 2024), and the forthcoming narrow-scope amendments for publicly traded entities as a cohesive package. Together, these standards provide a stronger, more coordinated response to the risks of fraud and financial distress.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions

The International Federation of Accountants (IFAC) warmly congratulates Kurt Hohl on his appointment as Chief Accountant at the U.S. Securities and Exchange Commission (SEC), effective July 7, 2025.

Lee White, Chief Executive Officer of IFAC, said: "Kurt Hohl’s appointment comes at a critical juncture for global financial markets. His deep technical expertise, global perspective, and unwavering commitment to audit quality and investor protection make him an exceptional choice to lead the Office of the Chief Accountant. We look forward to continued collaboration in pursuit of transparent, high-quality financial reporting and assurance standards."

Mr. Hohl brings nearly four decades of experience across public practice, regulatory service, and advisory roles. Most recently, he was the founder of Corallium Advisors, offering strategic guidance on regulatory compliance, auditing, and risk management. Prior to that, he served 26 years as a partner at Ernst & Young (EY), including as global deputy vice-chair of EY’s Global Assurance Professional Practice. He is a former Associate Chief Accountant at the SEC, where he authored the foundational Financial Reporting Manual.

"Mr. Hohl’s return to the SEC signals a renewed emphasis on leadership that values both public interest and professional excellence. His leadership will help steer the accounting and auditing landscape through an era of innovation and growing global complexity," added Lee White.

"On behalf of the global accountancy profession, we extend our warmest congratulations and support as he assumes this vital role."

IFAC also expresses sincere appreciation to Ryan Wolfe for his dedicated service as Acting Chief Accountant. "Ryan’s steady leadership during this transition period has been instrumental in upholding the SEC’s mandate. We are very pleased that he will continue contributing his expertise in the Division of Enforcement," Lee White concluded.

About IFAC

IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.