Revised IFAC Code of Ethics
19 Jul 2009
The International Ethics Standards Board for Accountants (IESBA) has issued a revised Code of Ethics for Professional Accountants (Revised 2009), clarifying requirements for all professional accountants and significantly strengthening the independence requirements of auditors.
The revised Code, which is effective on 1 January 2011, includes the following changes:
- Extending the independence requirements for audits of listed entities to all public interest entities.
- Requiring a cooling off period before certain members of the firm can join public interest audit clients in certain specified positions.
- Extending partner rotation requirements to all key audit partners.
- Strengthening some of the provisions related to the provision of non-assurance services to audit clients.
- Requiring a pre- or post-issuance review if total fees from a public interest audit client exceed 15% of the total fees of the firm for two consecutive years.
- Prohibiting key audit partners from being evaluated on or compensated for selling non-assurance services to their audit clients.
