Madame Minister of Finance, Mr. President of the Association of National Accountants of Nigeria, esteemed representatives and colleagues, ladies and gentlemen.

It is a pleasure and a privilege to address you today at this ANAN-PAFA-IFAC conference. I congratulate the organizers and thank the hosts for holding this very timely and useful event.

The fight against illicit behavior and corrupt practice is a worldwide undertaking pursued by international organizations, public and private sector entities, civil society and organized professions.

Accountants around the world are very important - I would say central - actors at the very heart of economic decisions, transactions and strategies. They can therefore play an enormous role in combatting all aspects of illegality and noncompliance with laws and regulations, and in freeing economies from the burdens caused by malfeasance. 

The International Code of Ethics for Professional Accountants is a valuable instrument in that combat. It also is one of the most explicit and broadly accepted Ethical Codes in the world, recognized also by other international professions.

We at IESBA are working to maintain, enhance and promote The International Code of Ethics for Professional Accountants (including international independence standards). The Code is, as I said, a powerful instrument at the disposal of the global accounting profession.

Promotion of faithful adherence to ethical behavior builds up a solid barrier against corrupt practice. Implementation of the Code’s provisions fortifies the international profession in resisting and  battling corruption.

The Fundamental Principles of the Code - integrity, objectivity, due care and competence, professional behavior – provide a comprehensive armory in opposition both to corrupt intent and to illicit practice.

The body of the provisions of the Code strongly encourages PAs to respond to illicit behaviors and corruption when they encounter them in the course of their duties. My colleague, Saadiya Adam, will expand on this theme and the Code’s more specific provisions in her presentation to follow.

We are going through a difficult time because of the Covid pandemic and its dire health and economic consequences in all countries. We are witnessing universal efforts by governments around the world to boost the resilience of economies and societies as they are faced with this calamity.

In this environment of pandemic, as in any crisis, it is unfortunate but true that opportunities and incentives for corruption, illicit, unethical practices are heightened. For example, many organizations, including governments, corporations and accounting firms had to pivot to virtual platforms very quickly, among other adjustments. This may have exposed their IT systems and infrastructures to more sophisticated corruption activities including cybercrime.

Besides this, as many companies have to face unexpected and difficult financial challenges and as they seek government support, accountants offering their services in those activities must be very alert, diligent and vigilant that these arrangements are carried out within laws, regulations and the duty of due care.

In response to all these heightened risks, IESBA has formed a CV-19 working group with a mandate to provide guidance to accountants on compliance with Code provisions in the current difficult circumstances. We have reached out for collaborations in this task and the results have already appeared.

Let me mention for example two very recent and relevant staff publications that have been circulated by IESBA in collaboration with other stakeholder organizations:

1. Issued jointly by the Staffs of the South African Independent Regulatory Board for Auditors, (IRBA) the International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB), the paper titled, Navigating the Heightened Risks of Fraud and Other Illicit Activities During the COVID-19 Pandemic, including Considerations for Auditing Financial Statements. 
2. Issued jointly by the Staffs of Chartered Professional Accountants of Canada (CPA Canada) and IESBA, the paper titled COVID-19 and Evolving Risks for Money Laundering, Terrorist Financing and Cybercrime.

Hoping that the pandemic will quickly come under control, we have to look forward to opportunities and responsibilities as we return to normalcy. The IESBA, as a global standard setter will continue and enhance its work of engagement with stakeholders around the globe as a major strategic imperative.

This engagement is a two-pronged activity. On one hand we engage to promote adoption and implementation of the Code, its revisions and its enhancements. This work has brought us into contacts with many stakeholders, such as yourselves, and we look forward to continued two-way communication and mutual awareness. 

On the other hand, we seek close engagement with global stakeholders through our consultations processes which bring out contributions to our current standard-setting projects.

We issue exposure drafts of proposed standards, we organize roundtables and present webinars on current work and, in short, we use all available means for eliciting stakeholder opinions and advices for our work.

The success of all this is critical to an important strategic dimension that we espouse at IESBA: our standards must be “principle-based”, clear and globally applicable. This is something we cannot achieve on our own. We absolutely need stakeholder engagement in order to fulfill that objective.

But this is not the only stricture for good standards. International standards, when implemented in national environments have to work well with local laws and cultures. The accountants implementing those standards may be more successful if they can depend on the work of others, for example, local standard setters, regulators, corporate governance officials, public and private sector managers etc. Ethical behavior of a single profession can multiply its effectiveness if surrounding professions also espouse and apply ethical goals.

Let me close by saying again how pleased I am to be with you and that I consider today’s event as the start of a new series of fruitful contacts of IESBA with ANAN, PAFA members and other African stakeholders.

Thank you very much, good health and best wishes to your endeavors.

Dr. Stavros Thomadakis

Chairman, International Ethics Standards Board for Accountants

Today IFAC completed its inaugural series—Exploring the IESBA Code—a unique, educational resource developed in collaboration with the staff of the International Ethics Standards Board for Accountants (IESBA). Launched in November 2019, each installment of the series highlights important concepts and topics in the International Code of Ethics for Professional Accountants (including International Independence Standards).

The final installment, released today, explains the “building blocks” structure of the Code and its interconnected nature. This installment is intended to help readers better understand how to use and navigate the Code so that they can quickly identify and access the ethics and independence standards and guidance relevant to them. Other topics covered in the series include: the fundamental principles, the conceptual framework, auditor independence, conflicts of interest, inducements, non-compliance with laws and regulations (NOCLAR), pressure, and the role and mindset expected of the professional accountant with a focus on bias.

“The Exploring the IESBA Code series is a very useful tool to complement the IESBA eCode,” said Dr. Stavros Thomadakis, IESBA Chairman. “Each installment provides a summary of important aspects of the Code with cues on how to read and apply its authoritative text. This final installment spotlights the purpose of the Code, how it is structured, and how it should be used—by accountants in business (PAIBs) and public practice (PAPPs), including auditors. The successful completion of this initiative demonstrates once again how IESBA’s and IFAC’s  partnership is valuable in supporting the global adoption and implementation of the Code.”

IFAC’s CEO, Kevin Dancey, said “The ethical foundation of the accountancy profession is one of its most important features. The Exploring the IESBA Code series demonstrates IFAC’s commitment to this ethical foundation and our role in supporting the important work of IESBA, as well as the International Auditing and Assurance Standards Board (IAASB) and International Public Sector Accounting Standards Board (IPSASB). I encourage our members, professional accountancy organizations and national standard setters around the world to leverage this new resource—to help raise awareness of the Code and to help professional accountants uphold their public interest responsibility.” 

About IFAC

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

During this webinar, the IESBA’s PIE Task Force Chair, Mr. Mike Ashley, will explain key proposed changes to the definition of a public interest entity in its recently released Exposure Draft: Proposed Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code (PIE ED).

The topics covered will include:

During this webinar, the IESBA’s PIE Task Force Chair, Mr. Mike Ashley, will explain key proposed changes to the definition of a public interest entity in its recently released Exposure Draft: Proposed Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code (PIE ED).

The topics covered will include:

As an increasing number of businesses around the world implement integrated reporting as a route to long-term value creation and sustainable development, the demand for assurance services on such reports is expected to rise accordingly. To help meet this demand, and to increase confidence in integrated reporting, the International Federation of Accountants (IFAC) and the International Integrated Reporting Council (IIRC) are launching a new joint initiative, Accelerating Integrated Reporting Assurance in the Public Interest (“the Initiative”).

The Initiative recognizes that new thinking is required to determine what comprises integrated report assurance and how to best deliver it, given integrated reporting’s broad and forward-looking focus on value creation. The Initiative, which will be rolled out in installments, is designed to heighten awareness of key issues, drive constructive conversation with and among key stakeholders, and encourage providers and users of assurance services in particular to lend their voices to the effort.

The first installment is being released today and sets out what integrated reporting assurance involves for organizations, auditors, and others. This installment also addresses the difference between the two types of assurance - limited and reasonable - and what is required of auditors and organizations to strive for reasonable integrated reporting assurance.

Feedback on the Initiative and the first installment can be sent to stathisgould@ifac.org. All comments are welcome, especially those that address:

• perceived or actual opportunities and challenges for progressing integrated reporting assurance
• areas in which additional thought leadership and guidance would be useful for organizations, auditors and assurance providers.

Commenting on the initiative, Charles Tilley, Chief Executive Officer, IIRC said, “We believe the move toward assurance of integrated reports, particularly the move from limited to reasonable assurance, should lead to improvements in the quality of integrated reports and underlying business practices, and enable investors and other stakeholders to have more confidence in the information reported about the business and its resilience.”

Tjeerd Krumpelman, Global Head of Advisory, Reporting & Engagement, ABN AMRO N.V. said “We decided a few years ago to obtain cover-to-cover independent assurance, based on the <IR> Framework, from our financial statements auditor, EY, on our 2017 Integrated Report. We were a groundbreaker in this regard, and encourage all other integrated reporters to do the same. We believe this pathway has not only enhanced the credibility of our report and provided stakeholders with increased confidence, but we also received valuable reporting and process improvement recommendations. Our next step is to move from limited to reasonable assurance for parts of our integrated report, and to obtain assurance on other non-financial disclosures, such as our Human Rights report, because it makes good business sense.”

Kevin Dancey, Chief Executive Officer, IFAC, said, “Integrated reporting assurance, and indeed providing assurance on all non-financial (including sustainability) information, is a critical element in the future role of accountants, requiring them to apply their professional expertise to assurance engagements that enhance the credibility of corporate reporting. Practice needs to develop quickly in this immature part of the reporting and assurance world, particularly to provide confidence in narrative and forward-looking information. Professional accountants, as preparers and assurance providers, are uniquely qualified to help lead the way in this important area.”

About IFAC
The International Federation of Accountants (IFAC) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About the IIRC
The International Integrated Reporting Council (IIRC) is a global coalition of regulators, investors, companies, standard setters, the accounting profession, academia and NGOs. The coalition promotes communication about value creation as the next step in the evolution of corporate reporting. The IIRC’s vision is to align capital allocation and corporate behaviour to wider goals of financial stability and sustainable development through the cycle of integrated reporting and thinking. Visit: www.integratedreporting.org

To celebrate International Women’s Day, IFAC Deputy President Asmâa Resmouki and

About the event

In today’s world, the way in which companies use natural resources, employ their workforces, and position themselves in the face of critical societal issues will affect performance, access to capital, and long-term value creation. There isn’t just a moral imperative for businesses and organizations to behave responsibly, but a financial one. It makes business sense to do good.