IESBA issues final set of proposals for restructured Code of Ethics

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01 Feb, 2017

The International Ethics Standards Board for Accountants (IESBA) has completed the first phase of its strategic project to restructure its Code of Ethics for Professional Accountants (the Code). During this first phase the IESBA introduced a new structure and drafting convention and restructured a major portion of the Code.

The overall restructuring is intended to result in a Code that is more understandable and easier to use. This includes agreeing on revisions to a number of provisions pertaining to safeguards in the Code, including enhancements to the conceptual framework of “threats and safeguards”.

The IESBA are now entering into the final stage of their restructuring project. This involves three Exposure Drafts (EDs) that include the following proposals:

  • To restructure select sections of the Code, including recently finalised provisions addressing accountants’ response to non-compliance with laws and regulations, long association of audit firm personnel with an audit or assurance client, and ethical issues that professional accountants in business often face.
  • To revise the safeguards-relation provisions in the independence sections of the Code pertaining to non-assurance services provided to audit and other assurance clients.
  • To clarify the applicability of professional accountants in business provisions to professional accountants in public practice.

Comments can be made on the above proposals via the IESBA website.

The IESBA intends to complete its restructure in December 2017.

Click here for the IESBA press release.

Click here for highlights of the restructuring project to date and related timelines.

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