Join Accountancy Europe, the Association of Chartered Certified Accountants (ACCA), SMEunited and IFAC for The impact of bribery and corruption on SMEs, under the auspices of the Czech Presidency of the European Union.

Corruption and bribery are not limited to multinationals engaging with high levels of government. Small and medium-sized enterprises (SMEs), which are part of almost every supply chain, also face those problems.

The International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) welcome today's announcement from the International Organization of Securities Commissions (IOSCO) of its support and encouragement for the IAASB’s and IESBA’s work on developing standards relating to assurance of sustainability-related information. The IAASB and IESBA acknowledge that stakeholders areincreasingly seeking assurance of sustainability-related information and that it is important to respond to market demands with robust standards applicable to all sustainability assurance providers.

IAASB Chair Tom Seidenstein said: “There is a clear need for ongoing dialogue and collaboration to ensure sustainability reporting, assurance, and regulation develop in a cohesive manner to provide decision-useful information to stakeholders. We are pleased to have IOSCO’s support for our ongoing work to enhance sustainability assurance standards and look forward to continuing our strong, fruitful relationship with IOSCO and others.”

IESBA Chair Gabriela Figueiredo Dias said: “Ethics standards, including independence requirements, are foundational to public trust in the assurance of sustainability-related information. It is crucial and in the public interest that all assurance providers, whether or not they are from the accountancy profession, adhere to the same high bar of ethical behavior and independence when engaged in such assurance work. We have given high priority to bringing to market fit-for-purpose ethics and independence standards in this area and look forward to close coordination with IOSCO and IAASB on this journey.”

The IAASB meets this week to continue discussions and vote on its sustainability assurance project proposal to develop an overarching standard for assurance engagements on sustainability. The standard will provide a global baseline for all professional assurance providers providing assurance on any sustainability information being reported, if the preconditions necessary for effective assurance are met.

The IESBA meets this week to consider possible approaches to standard setting in relation to sustainability assurance and sustainability reporting, recognizing that professional accountants in business play a “first line of defense” role in preparing and presenting trustworthy sustainability information. The IESBA will also consider the applicability of its standards to assurance providers outside of the accountancy profession. The IESBA anticipates approving a project plan by December 2022.

The IAASB and IESBA will continue to closely collaborate with IOSCO and other regulatory and standard-setting bodies to inform the development of robust standards that foster independent, high-quality engagements and globally consistent practices.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves 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 IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

IFAC welcomes the opportunity to respond to IPSASB’s Consultation Paper on Advancing Public Sector Sustainability Reporting. As the global voice of the accountancy profession, IFAC represents over 180 professional accountancy organizations in 135 jurisdictions, thereby representing more than three million professional accountants worldwide.

Since 2017, IFAC and ACCA have gathered data across the G20 on the attitudes and opinions of the general public towards their tax systems, and the actors involved in them. Reflecting the views of over 5,600 people across 14 countries, this survey—the first that looks beyond the world's largest economies—provides an insight into whom they trust and what concerns them, backed up by expert opinion from professionals, academics and tax authority officials.

Today, the International Federation of Accountants (IFAC) issued its action plan to enhance the accountancy profession's contribution to, and support of, a robust anti-corruption ecosystem encompassing a diverse array of participants and policies. The Action Plan for Fighting Corruption and Economic Crime sets out more than 30 specific actions for IFAC and the accountancy profession related to education, evidence-based policy, global standards, partnership, and thought leadership.

“Corruption and related economic crimes, such as money laundering, bribery, tax evasion and fraud, are significant obstacles to economic growth and human development and, ultimately, to achieving the UN Sustainable Development Goals—all seventeen of them,” said IFAC CEO Kevin Dancey. “Our Action Plan illustrates some time tested and some new ways that make it clear that the global accountancy profession is a central ally in the fight. We look forward to working with our member organizations and other partners to make a real difference and drive positive change.”

The Action Plan embodies an enhanced commitment by the accountancy profession to fighting corruption, as well as economic crime more broadly. It harnesses the profession’s reach across public practice, business, and the public sector to both contribute directly to the fight against corruption and indirectly by supporting integrity and transparency in business and government, as well as effective global and domestic policymaking.

The Action Plan was developed with extensive engagement across IFAC’s 180 member organizations, as well as our advisory groups, network partners, and other key global organizations. Taking inspiration from the International Bar Association’s (IBA) Anti-Corruption Strategy for the Legal Profession, the Action Plan was developed in close coordination with the IBA, with whom we will continue to coordinate to help bring increased energy to this important work.

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 180 members and associates in 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.