International Ethics Standards Board for Accountants
Last updated
International body setting ethics standards for accountants
International Ethics Standards Board for Accountants
Abbreviation
IESBA
Purpose
Develop and promote the Code of Ethics for professional accountants and the International Independence Standards that apply to audit and assurance engagements.
The International Ethics Standards Board for Accountants (IESBA) develops and promotes the International Code of Ethics for Professional Accountants (including International Independence Standards). The IESBA also supports debate on issues related to accounting ethics and auditor independence.[1]
The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG)[2] and under the oversight of the Public Interest Oversight Board (PIOB).[3][4]
The IESBA is dedicated to operating as transparently as possible. IESBA meetings are open to the public. The agendas, agenda papers, meeting highlights and audio recordings for each meeting are posted on the IESBA's website. In addition, the IESBA's website includes information about the IESBA's Strategy and Work Plan and its various projects and initiatives. The IESBA's website also includes resources, including Staff Q&As and the IESBA eCode[5] to help support the adoption and implementation of the IESBA Code.
Activities
In 2018, the IESBA issued a revised and restructured Code which came into effect in June 2019. The revised and restructured Code includes many substantive revisions, including in relation to non-compliance with laws and regulations (NOCLAR).[6] The 2018 version of the Code makes it clear that professional accountants, in whatever capacity they are engaged, cannot turn a blind eye to NOCLAR. The provisions in the Code guide ethical behavior and help professional accountants uphold their responsibility to act in the public interest.
The IESBA periodically issues revisions to the IESBA Code. In 2019, the IESBA issued revisions to Part 4B of the IESBA Code to Reflect Terms and Concepts Used in ISAE 3000 (Revised).[7]
Convergence of international and national ethical standards is a high priority for the IESBA. Professional accountancy organizations who are members of the International Federation of Accountants (IFAC), such as the ICAEW, AICPA, IMA, and the ICAS are required to adopt the IESBA Code of Ethics.[8]
International Code of Ethics Structure
The following is the full table of contents and sections from the Handbook of the International Code of Ethics for Professional Accountants.[9]
Part 1 – Complying with the Code, Fundamental Principles and Conceptual Framework
100 Complying with the Code
110 The Fundamental Principles
111 – Integrity
112 – Objectivity
113 – Professional Competence and Due Care
114 – Confidentiality
115 – Professional Behavior
120 The Conceptual Framework
Part 2 – Professional Accountants in Business
200 Applying the Conceptual Framework – Professional Accountants in Business
210 Conflicts of Interest
220 Preparation and Presentation of Information
230 Acting with Sufficient Expertise
240 Financial Interests, Compensation and Incentives Linked to Financial Reporting and Decision Making
250 Inducements, Including Gifts and Hospitality
260 Responding to Non-compliance with Laws and Regulations
270 Pressure to Breach the Fundamental Principles
280 Tax Planning Activities
Part 3 – Professional Accountants in Public Practice
300 Applying the Conceptual Framework – Professional Accountants in Public Practice
310 Conflicts of Interest
320 Professional Appointments
321 Second Opinions
325 Objectivity of an Engagement Quality Reviewer and Other Appropriate Reviewers
330 Fees and Other Types of Remuneration
340 Inducements, Including Gifts and Hospitality
350 Custody of Client Assets
360 Responding to Non-compliance with Laws and Regulations
380 Tax Planning Services
International Independence Standards
Part 4A – Independence for Audit and Review Engagements
400 Applying the Conceptual Framework to Independence for Audit and Review Engagements
405 Group Audits
410 Fees
411 Compensation and Evaluation Policies
420 Gifts and Hospitality
430 Actual or Threatened Litigation
510 Financial Interests
511 Loans and Guarantees
520 Business Relationships
521 Family and Personal Relationships
522 Recent Service with an Audit Client
523 Serving as a Director or Officer of an Audit Client
524 Employment With an Audit Client
525 Temporary Personnel Assignments
540 Long Association of Personnel (Including Partner Rotation) with an Audit Client
600 Provision of Non-Assurance Services to an Audit Client
601 – Accounting and Bookkeeping Services
602 – Administrative Services
603 – Valuation Services
604 – Tax Services
605 – Internal Audit Services
606 – Information Technology Systems Services
607 – Litigation Support Services
608 – Legal Services
609 – Recruiting Services
610 – Corporate Finance Services
800 Reports on Special Purpose Financial Statements (Restricted Use)
Part 4B – Independence for Assurance Engagements Other than Audit and Review Engagements
900 Applying the Conceptual Framework to Independence for Assurance Engagements
905 Fees
906 Gifts and Hospitality
907 Actual or Threatened Litigation
910 Financial Interests
911 Loans and Guarantees
920 Business Relationships
921 Family and Personal Relationships
922 Recent Service with an Assurance Client
923 Serving as a Director or Officer of an Assurance Client
924 Employment with an Assurance Client
940 Long Association of Personnel with an Assurance Client
950 Provision of Non-assurance Services to Assurance Clients
990 Reports that Include a Restriction on Use and Distribution
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.