IFAC releases revised code of ethics and an ED

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04 Jul 2005

The Ethics Committee of the International Federation of Accountants has released a revised version of the Code of Ethics for Professional Accountants.

The revised Code establishes a conceptual framework for all professional accountants to ensure compliance with the five fundamental principles of professional ethics. These principles are integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Under the framework, all professional accountants will be required to identify threats to these fundamental principles and, if there are threats, apply safeguards to ensure that the principles are not compromised. The framework applies to all professional accountants, those in public practice and those in business, industry and government. The revised Code is effective June 30, 2006. Earlier adoption is encouraged. It can be viewed and downloaded by going to www.ifac.org/Store/. The Ethics Committee has also issued an exposure draft that proposes revisions to the definition of a network firm. Network firms are required to be independent of an audit client of a firm within the network. The proposed changes would classify a firm as a network firm of another firm if the two share a common brand name or if they share significant professional resources or revenues, profits, costs or expenses. The new ED, Proposed Revised Section 290, Independence - Assurance Engagements, may be downloaded from IFAC's Website. Comments are due by 30 September 2005. Click for Press Release (PDF 64k).

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