PAIB Committee Response to the IESBA Exposure Draft on Proposed Changes to Part C of the Code of Ethics

The IFAC Professional Accountants in Business (PAIB) Committee values the opportunity to comment on the International Ethics Standards Board for Accountants (IESBA)’s Exposure Draft proposing changes to Part C of the Code of Ethics for Professional Accountants (the Code) addressing presentation of information and pressure to breach the fundamental principles.

For the accountancy profession to deliver on its public interest mandate and bring about confidence in the global financial system, we have to recognize that the majority of professional accountants work in organizations alongside many other professionals. Ultimately, ethical behaviors and practices in organizations are facilitated by the quality of the governance arrangements of the organization itself, starting with the tone and the action at the top, and its own code of ethics and/or conduct. The IFAC Professional Accountants in Business (PAIB) Committee believes that professional accountants can, and should, work within their organizations to influence ethical practices. The PAIB Committee believes that ethical behavior is fundamental to the effective functioning of professional accountants in business and the organizations for which they work.

Overall, the PAIB Committee agrees with the proposed changes to Part C of the Code as the changes aim to support and strengthen the position of the professional accountant in business. Presentation of information and pressure are indeed key ethical issues for professional accountants in business; therefore, this new guidance is timely and relevant. In their day-to-day work, it is not always clear to professional accountants in business that issues regarding the presentation of information or pressures to breach principles pose a potential risk of breaching the fundamental principles within the Code. The revised Part C helps to provide greater awareness of these issues but these would be further enhanced by IFAC member bodies complementing this guidance with additional awareness and/or CPD training for their professional accountants in business.

Detailed feedback is available in the full comment letter.