The International Ethics Standards Board for Accountants (IESBA) today released for public comment proposed revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards).

The Exposure Draft Proposed Technology-related Revisions to the Code seeks to enhance the Code’s robustness and expand its relevance in an environment being reshaped by rapid technological advancements. The proposed amendments will guide the ethical mindset and behavior of professional accountants in business and in public practice as they deal with changes brought by technology in their work processes and the content of the services they provide. 

“Technological innovation is transforming the world of business and professional services in ways we would never have imagined even a decade ago,” said IESBA Chair Ms. Gabriela Figueiredo Dias. “Technology is not neutral, and professional accountants’ working relationship with it must be shaped by ethics. These timely proposals are designed to emphasize and strengthen the ethical principles that should guide them as they navigate the challenges and take advantage of the opportunities created by these developments, recognizing ultimately their responsibility to act in the public interest.”

Among other matters, the proposals:

• Draw special attention to the professional competence and confidentiality imperatives of the digital age. 
• Address the ethical dimension of professional accountants’ reliance on, or use of, the output of technology in carrying out their work. 
• Further enhance considerations relating to threats from the use of technology as well as considerations relating to complex circumstances in applying the Code’s conceptual framework. 
• Strengthen and clarify the International Independence Standards (IIS) with respect to technology-related non-assurance services (NAS) firms may provide to their audit clients or technology-related business relationships they may enter into with their audit clients.
• Explicitly acknowledge that the IIS that apply to assurance engagements are applicable to assurance engagements on non-financial information, for example, environmental, social, and governance (ESG) disclosures.

The development of the proposals has been informed by extensive fact-finding work and outreach to stakeholders.

The proposed revisions build on the role and mindset changes that became effective last December, and the revised NAS provisions that will become effective in December 2022.

How to Comment

The IESBA invites all stakeholders to comment on the Exposure Draft by visiting the IESBA website. Comments are requested by June 20, 2022.

The International Federation of Accountants (IFAC), which comprises 180 member and associate organizations and represents over 3 million professional accountants globally, welcomes the opportunity to provide input into the European Commission’s work to enhance corporate reporting—including a focus on corporate governance, statutory audit, and supervisory aspects of the ecosystem that delivers relevant, reliable, and comparable information to stakeholders.

As the voice of the global accountancy profession, IFAC understands the crucial role that auditors, as well as professional accountants more broadly, play in high-quality corporate reporting.  But no matter how skilled or well-resourced, auditors alone cannot overcome significant shortcomings in other key areas of the reporting ecosystem—especially the role of directors, audit committees, and those charged with governance.

IFAC believes that global standards promote global methodologies, which lead to enhanced and more consistent quality in both reporting and assurance.  We support high-quality, globally-applicable standards for financial reporting developed by the IASB, sustainability disclosure developed by the ISSB, audit and assurance developed by the IAASB, as well as the IESBA International Code of Ethics.  We also believe audit firms are best placed to provide not only audits of financial statements but also assurance on sustainability disclosures.

IFAC CEO Kevin Dancey said, “Corporate governance, audit, and supervision have historically focused on financial statement reporting for investors and other providers of capital.  But now that sustainability-related disclosure is becoming mainstream, this information must also be high-quality and trustworthy.  The accountancy profession, with its responsibility to act in the public interest, has an essential role to play in this evolution of corporate reporting.”

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

A global search has begun for highly qualified individuals to fill four volunteer openings on the International Ethics Standards Board for Accountants (IESBA) for an initial term of service of up to 3 years, commencing January 1, 2023.

The Public Interest Oversight Board’s (PIOB) newly formed Standard Setting Boards’ Nominations Committee has issued Invitations for Application, which includes the calls for both IESBA members and members of the International Auditing and Assurance Standards Board (IAASB). The application period will be open until March 30, 2022. The Board terms are renewable after the initial three years, for a maximum term of service of six years.

The Nominations Committee will make recommendations to the PIOB for up to four appointments and re-appointments to the IESBA. Individuals may also make nominations on their own behalf.

For additional information, please see the PIOB’s nominations web page or email SSBNominations@ipiob.org.

The Staff of the International Ethics Standards Board for Accountants (IESBA) today released a set of frequently asked questions (FAQs) on the recently revised fee-related provisions of The International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code)*. The FAQs have been informed by the extensive discussions and consultations with a wide range of stakeholder groups and the IESBA’s own deliberations during the development and finalization of the standard.

The publication is designed to highlight, illustrate or explain aspects of the revised fee-related provisions in the Code and thereby assist in their proper application. It is intended to complement the Basis for Conclusions for the final standard and assist national standards setters, professional accountancy organizations, and professional accountants in public practice (including firms) as they adopt and/or implement the revised provisions. The publication is also intended to assist regulators and audit oversight bodies, the corporate governance community, investors, preparers, educational bodies or institutions, and other stakeholders in understanding the revised standard and its application.

*The revised standard addresses a number of topics, including threats to independence created by fees paid by an audit client (including fees for services other than audit), fee dependency, and transparency of fee-related information to those charged with governance and to the public from an auditor independence perspective in the case of public interest entities. The revised standard becomes effective for audits of financial statements for periods beginning on or after December 15, 2022. Read the provisions here.

Today, the International Public Sector Accounting Standards Board^® (IPSASB^®) has issued Improvements to IPSAS, 2021. The pronouncement was approved by the IPSASB in December 2021.

Improvements to IPSAS, 2021 includes minor improvements to IPSAS to address issues raised by stakeholders and minor amendments sourced from recent IFRS improvements and narrow scope projects.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

The latest IESBA eNews has been released and is available here. 

The 2-page newsletter includes highlights of the various activities going on in and around the IESBA. 

The International Ethics Standards Board for Accountants (IESBA) is pleased to announce new board appointments and reappointments to take effect on January 1, 2022.

The five new Board Members are:

• Mark Babington (Executive Director, Regulatory Standards, Financial Reporting Council, UK)
• Christelle Martin (Former Group Director, ENGIE Group, France)
• Felicien Muvunyi (Managing Partner, Garnet Partners, Rwanda)
• Luigi Nisoli (Partner, Deloitte, Italy)
• Channa Wijesinghe (Chief Executive Officer, Accounting Professional & Ethical Standards Board, Australia)

The following two current Board Members will continue their service for another term:

• Sanjiv Chaudhary (Senior Advisor - Policy & Regulations, KPMG, India)
• Andrew Mintzer (Principle, Hemming Morse, USA)

"I warmly welcome such a strong group of diverse and experienced professionals to the IESBA,” said Stavros Thomadakis, IESBA Chairman. “These are critical times for the profession as the global economy emerges from the COVID-19 pandemic and faces new challenges of sustainability. I am confident these individuals, along with the existing Board members, will serve the public interest with conviction in advancing high-quality ethics standards for the global accountancy profession.”

The IESBA also announces the reappointment of Caroline Lee as its deputy chair for 2022.

“I am very pleased that Caroline will continue serving as IESBA deputy chair in 2022," said Dr. Thomadakis. “As my term expires, I am confident that she will provide a steady voice as the Board transitions to welcoming our new chairwoman, Ms. Gabriela Figueiredo Dias, and that she will continue to serve as a strong advocate for IESBA across the globe.”

Today, the IESBA announced that the eCode – a digital tool to access and navigate the  International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) – will be moving to the recently announced eIS, or e-International Standards, platform.  eIS is a web-based platform that provides electronic access to the authoritative standards developed by the IESBA, the International Auditing and Assurance Standards Board (IAASB) and the International Public Sector Accounting Standards Board (IPSASB). In addition to the standards, eIS provides access to non-authoritative resource materials, including staff-prepared Basis for Conclusions and Questions and Answers publications.

“Over two years ago, the IESBA and IFAC jointly launched the eCode to provide a web-based resource for the adoption and use of the IESBA Code,” said Dr. Stavros Thomadakis, IESBA Chairman. “Now, with the launch of eIS, the profession has convenient access to an enhanced version of the eCode – or eCode 2.0 – alongside the digitized standards of the IAASB and the IPSASB. The new platform leverages technologies to further refine existing features and user experience of the eCode. The platform sets the stage for new functionalities in the future, including translations. I am confident that users will expand their use of eCode 2.0 and that the reach of the Code of Ethics will become even broader”.

The eIS is intuitive, easily navigable and offers direct access to the 2021 edition of the IESBA Handbook and relevant resources. The eCode has a new look that will further enhance the user experience regardless of the device used to access the Code.  Constituents across the breadth of the stakeholder community were surveyed during the development phase to learn how they currently use the standards and how that use could evolve in a digital environment. The eIS and eCode 2.0 also benefited from the input from representatives of the IESBA and IESBA staff.

“eIS is another significant leap forward as the IESBA continues to leverage modern technologies, including mobile access, to make the content of the Code as widely accessible, visible and user-friendly as possible,” said Ken Siong, the IESBA Program and Senior Director. “Between 2020 and 2021, as the eCode became a valuable resource for firms, national standard setters, regulators and audit oversight bodies, professional accountancy organizations, investors, academia and others, pageviews of the platform jumped nearly 40%. We’re looking forward to seeing that trend continue and accelerate under eIS.”

Users of the current eCode will still be able to access the platform at www.IESBAeCode.org until December 30, 2021. However, as of December 31, 2021, they will be re-directed to the eIS platform.

To learn more about eIS, click here. 

To learn more about the IESBA, visit www.ethicsboard.org.

The IPSASB launched eIS – a centrally located digital gateway to the international standards that guide the accountancy profession, including IPSAS, the international accrual-based accounting standards increasingly used by governments and other public sector entities around the world.

eIS, or e-International Standards, makes the official standards of the IPSASB more accessible and easily digestible by allowing for convenient digital access anywhere with an internet connection and across multiple devices.

Previously, the standards were only available as harder-to-navigate PDFs or as printed copies and handbooks. The intuitive navigation, advanced search functions and filters, and straightforward controls of eIS make the standards easier to access and utilize. Current and previous versions of standards are available in one place for use and comparison without the need to obtain multiple handbook editions.

 “Accrual financial reporting is fundamental to transparency and accountability in the public sector, as well as providing information for good decision making. By 2030, 81% of the jurisdictions in the 2021 International Public Sector Accountability Index reporting on accrual are projected to be making use of IPSAS as part of their accrual financial reporting frameworks.” said Ian Carruthers, IPSASB Chair. “Given the projected growth of IPSAS adoption and implementation globally, eIS is a timely and crucial platform that will improve the accessibility of the standards.”

eIS was developed by IFAC collaboratively with the IESBA, the IAASB, and the IPSASB. The four organizations, through surveys and conversations with key stakeholders, identified the key elements required to deliver a practical, modern platform allowing the profession easier access to international standards, while providing enhanced usability.

To learn more about eIS, visit https://eis.international-standards.org/.

To explore accrual-based reporting frameworks and IPSAS adoption globally, visit the International Public Sector Financial Accountability Index.

About the IPSASB

The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

The International Public Sector Accounting Standards Board^® (IPSASB^®) welcomes the IFRS Foundation Trustees announcement of the formation of the International Sustainability Standards Board (ISSB), together with the publication of the prototype climate and general disclosure requirements developed by the Technical Readiness Working Group (TRWG).

“Climate change is an issue that is increasingly important to us all. Urgent public sector action will be critical to successfully addressing climate change, through the combination of its central roles as policy setter, regulator, funder and in service delivery. Strong governance, effective implementation, and accountability for the use of public sector resources will all be essential if governments are to play their parts in addressing climate change and sustainability more broadly,” said Ian Carruthers, IPSASB Chair.

“The guidance from the new ISSB will provide important tools for both effective decision making and strong reporting on sustainability issues globally. While having an investor focus, with suitable interpretation it has the potential to provide a basis for some of the guidance that jurisdictions will require for tracking their progress in reaching their climate change targets and other key sustainability initiatives such as the UN’s Sustainable Development Goals. The IPSASB looks forward to working closely with the ISSB as exploration starts of public sector sustainability reporting guidance needs following COP26.”

Sustainability is a focus area of the IPSASB. Learn about the IPSASB’s thinking related to sustainability and its existing guidance.

About the IPSASB

The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.