IESBA proposes to align ethics code with ISAs on 'those charged with governance'

  • IESBA (International Ethics Standards Board for Accountants) (lt gray) Image

23 Jul 2012

The International Ethics Standards Board for Accountants (IESBA) has released an exposure draft which proposes to change to the definition of “those charged with governance” in the IESBA 'Code of Ethics for Professional Accountants' (the Code) to align it with International Standards on Auditing (ISAs).

Specifically, the proposals seek to more closely align the definition of “those charged with governance” in the Code with that in the IAASB’s International Standard on Auditing (ISA) 260, Communication with Those Charged with Governance, and to eliminate any confusion as to how it is defined.

In the IESBA's view, the revised definition captures essentially the same group of persons as captured by the current definition,  but the proposed change will enhance its clarity and its consistency with the definition in ISA 260. This proposal also recognises, as does the definition in ISA 260, that the communication may be with a subgroup of those charged with governance (such as an audit committee).

Comments on the Exposure Draft are requested by 31 October 2012 and, subject to comments received on the exposure draft, the IESBA expects to finalise the revision to the Code in the second half of 2012.

Click for IESBA press release (link to IFAC website).

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