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The public interest

How do you make a decision in the Public Interest?

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'The public interest' is used by many to justify a wide range of actions and proposals. However, it is often unclear (even to those using the term) what they mean by this, and there can be a natural suspicion that the phrase may be used as a smokescreen to garner support for something that is actually in the advocate's own interests.

Acting in the public interest: a framework for analysis

From a broad perspective, ICAEW does not believe that a detailed general definition would serve a useful purpose: individual circumstances are too variable and such a definition would inevitably result in unintended consequences. What we propose in our paper is a framework of matters to consider when justifying an action as being in the public interest. Using such a framework will allow those advocating an action in the public interest to understand what they mean, and, if explained, will allow those assessing the action or proposal to determine whether they can support the measure as being in the public interest.

We encourage feedback on the issues raised

Public interest in the ICAEW Code of Ethics

ICAEW has issued guidance on the public interest duty of the profession as a whole, and on what this means for individual members’ when applying the code of ethics’.

Other work

Other issues which are being explored in the Market Foundations thought leadership initiative include:

  • Instilling integrity in organisations
  • Economic crime

In August 2010 and 2012 we hosted debate at the American Accounting Association Ethics Symposium:

In November 2010 the International Federation of Accountants published a consultation paper setting out its perspective of the public interest to which ICAEW responded.  IFAC’s final paper, ‘A definition of the public interest’ was issued in June 2012.

If you would like to input to the work, have any queries or would like to receive more information, contact Tony Bromell at marketfoundations@icaew.com.

Further resources

ICAEW Code of Ethics

ICAEW's Code of Ethics applies to all members, students, affiliates, employees of member firms and, where applicable, member firms, in all of their professional and business activities, whether remunerated or voluntary.

View the Code
Auditor independence changes post-Brexit

This page considers specifically changes to auditor independence provisions resulting from UK legislation which will to be implemented immediately at the point the UK leaves the European Union, in the event of a no-deal Brexit. The changes impact only upon audits of Public Interest Entities (PIEs) but would apply without any transitional arrangements.

See more
Bribery Act 2010

Details of the Bribery Act 2010, including core offences of paying or receiving a bribe; bribery of a foreign public official; corporate offence of failure to prevent bribery; offences by senior officers and enforcement of the Act.

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FRC Ethical standards for auditors

The FRC’s Ethical Standard applies in the audit of financial statements and other public interest assurance engagements in both the private and public sectors. It is read in the context of the Statement “The Financial Reporting Council – Scope and Authority of Audit and Assurance Pronouncements” which sets out the application and authority of the FRC’s Ethical Standard.

Visit the FRC website
Professional conduct in relation to taxation

PCRT now consists of the fundamental principles and the standards for tax planning. Compliance with PCRT is mandatory for members advising on UK tax matters. Members must be familiar with and comply with PCRT and a failure to do so may result in disciplinary action.

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Trustee of trust with shares in an audit client

Technical helpsheet issued to help members to determine how relationships can impact audit independence, especially in regard to whether a firm can continue to act if a partner in the firm is a trustee of a trust that holds shares in an audit client.

See more