This section provides summaries of International Ethics Standards Boards for Accountants (IESBA) projects and consultations as well as Guidance from the independent standard-setting body that sets the ethical standards for professional accountants (Code of Ethics).
IESBA projects and consultations
Definitions of listed entity audit and PIE The objectives are to review the definitions of the terms “listed entity” and “PIE” in the Code to ensure that they remain relevant and fit for purpose, to establish agreement between the IESBA and IAASB on a common revised definition of the term “listed entity” that would be operable for both Boards’ standards, and to develop a pathway that would achieve convergence between the concepts underpinning the definition of a PIE in the Code and the description of an ESPI in the IAASB standards.
Tax planning and related services The objectives are to gather an understanding of regulatory, practice and other developments in corporate and individual tax planning by PAIBs and PAPPs, to identify and analyse the ethical implications of those developments and determine whether there is a need for enhancements to the Code or further actions.
The objective of this project is to ensure that the Code promotes the role, mindset and behavioural characteristics expected of all professional accountants when performing their professional activities.
Non-assurance services The objective of this project is to ensure that all the NAS provisions in the Code are robust and of high quality for global application, thereby increasing confidence in the independence of audit firms. The project scope will encompass the International Independence Standards related to the provision of NAS to audit clients. The International Independence Standards are set out in the revised and restructured Code.
The objective of the IESBA’s Fees project is to review the provisions in the International Code of Ethics for Professional Accountants (including the International Independence Standards) (the Code) pertaining to fee-related matters. The project is responsive to a public interest need for IESBA to deal with fee-related matters, including those that impact or are perceived to impact auditor independence – both independence of mind and independence in appearance. The project was informed by extensive fact-finding and the results of this fact-finding is summarised in a final report which was considered by the IESBA in June 2018.
The objectives of the Technology initiative are to:
Identify potential ethical implications of technology developments on the robustness and relevance of the fundamental principles and independence standards, including both challenges to compliance with requirements under the Code as well as ways in which technologies could be used to support and enhance compliance.
Develop proposed responses to address the ethical implications identified
Identify specific outreach and partnership opportunities to share knowledge and to promote the Code as an effective tool for professional accountants to refer to in addressing ethics issues related to the use and effects of technology on their professional activities.
Ethics are a fundamental component of what it means to be a professional accountant. Professional accountants and auditors are expected to behave ethically and to follow an ethical code with regards to their commercial practices. The International Ethics Standards Board for Accountants (IESBA) is the global independent body responsible for standard setting and issuing guidance on international standards on ethics.