About the ICAEW Code of Ethics

Chartered accountants are expected to demonstrate the highest standards of professional conduct and to take into consideration the public interest. Ethical behaviour plays a vital role in ensuring public trust in financial reporting and business practices and upholding the reputation of the accountancy profession.

The ICAEW Code of Ethics helps our members meet these obligations by providing them with ethical guidance. The latest iteration of the code came into effect on 1 July 2025.

Based on IESBA Code

ICAEW’s Code of Ethics is based on the Code of Ethics for Professional Accountants of the International Ethics Standards Board for Accountants (IESBA) published by the International Federation of Accountants (IFAC). The 2025 edition of ICAEW's Code is based on the 2024 version of IESBA's Code and is used with permission of IFAC.

The IESBA Code has adopted the principles-based approach pioneered by ICAEW. Additional guidance (indicated in the Code in italics) is included by ICAEW in areas that have been found to be of particular relevance to our members in the past or reflecting the particular environment in the UK.

The IESBA Code of Ethics does not apply directly to ICAEW members. However, the main accountancy bodies throughout the world, including ICAEW and the CCAB bodies, are required to comply with the principles included in the IESBA Code of Ethics.

What's in the Code

IESBA's Code sets out fundamental principles of ethics for professional accountants, in recognition of the profession's public interest responsibility. These principles establish the standard of behaviour expected of a professional accountant. The fundamental principles are:

• integrity,
• objectivity,
• professional competence and due care,
• confidentiality, and
• professional behaviour. 

The Code provides a conceptual framework that professional accountants are to apply to identify, evaluate and address threats to compliance with the fundamental principles. The Code sets out requirements and application material on various topics to help accountants apply the conceptual framework to those topics.

In the case of audits, reviews and other assurance engagements, the Code sets out International Independence Standards, established by the application of the conceptual framework to threats to independence in relation to these engagements.

Auditor independence

For audits in accordance with ISAs (UK), the independence requirements of the FRC Ethical Standard apply instead of the detailed requirements of Part 4A of the ICAEW Code. Although a number of detailed provisions vary between the FRC Ethical Standard and Part 4A, both sets of requirements apply a robust principles based approach to the fundamental requirement for independence. ICAEW does not consider it in the public interest to require auditors to have to apply both sets of detailed requirements. Therefore in accordance with paragraph 8 of SMO4 (a statement of obligations for IFAC member bodies, to which ICAEW subscribes), ICAEW considers that auditors applying the FRC Ethical Standard will be considered to have applied the independence requirements of the ICAEW Code.

Taxation

Additional ethical guidance and requirements for members engaged in tax work are included in ‘Professional Conduct in Relation to Taxation

Structure of the code

Part 1 – Complying with the Code, Fundamental Principles and Conceptual Framework, which includes the fundamental principles and the conceptual framework and is applicable to all professional accountants.

Part 2 – Professional Accountants in Business, which sets out additional material that applies to professional accountants in business when performing professional activities. Professional accountants in business include professional accountants employed, engaged or contracted in an executive or non-executive capacity in, for example:

• commerce, industry or service;
• the public sector;
• education; 
• the not-for-profit sector; or
• regulatory or professional bodies.

Part 2 is also applicable to individuals who are professional accountants in public practice when performing professional activities pursuant to their relationship with the firm, whether as a contractor, employee or owner.

Part 3 – Professional Accountants in Public Practice, which sets out additional material that applies to professional accountants in public practice when providing professional services.

International Independence Standards, which sets out additional material that applies to professional accountants in public practice when providing assurance services, as follows:

• Part 4A – Independence for Audit and Review Engagements, which applies when performing audit or review engagements.
• Part 4B – Independence for Assurance Engagements Other than Audit and Review Engagements, which applies when performing assurance engagements that are not audit or review engagements.

Part 10 – Insolvency. Insolvency Practitioners in the UK have to comply with the Insolvency Code. The Insolvency Code is currently part of the ICAEW Code but is set out in a separate document.

Glossary, which contains defined terms (together with additional explanations where appropriate) and described terms which have a specific meaning in certain parts of the Code. For example, as noted in the Glossary, in Part 4A, the term “audit engagement” applies equally to both audit and review engagements. The Glossary also includes lists of abbreviations that are used in the Code and other standards to which the Code refers.