This Basis for Conclusions has been prepared by staff of the International Ethics Standards Board for Accountants (IESBA). It explains how the IESBA has addressed the significant matters raised on the IESBA Strategy and Work Plan, 2024-2027 (SWP) consultation paper (CP) and in the IESBA’s deliberations in finalizing the SWP.
Expansion of IESBA activity to address culture and governance at accounting firms
Exploration of increased scope and applicability of the IESBA Code to all individuals who perform the same activities as professional accountants
New workstream to address the evolving role of the CFO in protecting the integrity of financial and non-financial information.
The International Ethics Standards Board for Accountants (IESBA) today announced the publication of its Strategy and Work Plan for 2024-2027 (SWP), titled Towards a More Sustainable Future: Advancing the Centrality of Ethics. The SWP sets out the IESBA's vision and strategic goals and actions, underpinning its ambition to put the International Code of Ethics for Professional Accountants (including International Independence Standards) at the heart of business and organizations.
"Putting ethics at the center of every business judgment and decision is the surest way to earn, restore and strengthen public trust in all that an organization does. The external landscape continues to evolve, presenting new dynamics and challenges, but good ethical behavior acts as a constant amidst the uncertainty. It is about integrity, expected behaviors and mindset, and making the right decision,” said Gabriela Figueiredo Dias, IESBA Chair. “Our new strategic plan reflects the IESBA’s unwavering determination to face the external environment head-on, broaden the reach and scope of our work, and set the highest standards of ethical conduct for professional accountants and others who play a role, large or small, in the financial and non-financial information supply chain. That is how our work, vision and ambition support the proper functioning and sustainability of organizations, financial markets and economies worldwide in the public interest."
Within the SWP, the IESBA has identified two high-priority strategic areas of focus, namely:
Accounting firm culture and governance, which seeks to identify potential actions the IESBA might take within or outside the Code to respond to the persistent high-profile cases of unethical behavior in accounting firms.
Exploring the opportunity to extend the impact of the Code beyond the accountancy profession to a wider array of individuals who perform similar work as professional accountants, building on its current project to develop profession-agnostic ethics, including independence, standards for all sustainability assurance practitioners. Among other matters, this will include a new workstream to explore expanding the scope and applicability of the Code beyond professional accountants to all preparers of sustainability information.
Other key highlights of the SWP include:
New initiatives to explore ethical considerations relating to the evolving role of CFOs and other senior professional accountants in business, and independence considerations relating to business relationships between firms and their audit clients.
A commitment to conduct a series of post-implementation reviews for significant ethics, including independence, standards the IESBA issued in recent years.
Ongoing monitoring of the rapidly changing landscape of technological transformations and their impact on the professional activities and services performed by professional accountants and others, with a view to determining the need for any further standard-setting or other actions the IESBA might take in the public interest.
A commitment to close coordination with the IESBA’s sister Board, the International Auditing and Assurance Standards Board (IAASB), and to fostering collaborative relationships with other standard-setters to ensure standards interoperability.
The SWP represents the culmination of careful assessment of market developments and thoughtful consideration of stakeholder feedback from the IESBA’s extensive outreach and consultation activities over a two-year period.
The International Ethics Standards Board for Accountants serves the public interest by setting high-quality ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.
Along with the International Auditing and Assurance Standards Board (“IAASB”), the IESBA is part of the International Foundation for Ethics and Audit (“IFEA”). The Public Interest Oversight Board (“PIOB”) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.
The IESBA's Strategy and Work Plan (SWP), 2024 - 2027 sets out the IESBA's vision and strategic goals and actions, underpinning its ambition to put the Code at the heart of business and organizations. The SWP has identified two high-priority strategic areas of focus, namely:
The International Auditing and Assurance Standards Board (IAASB) published its approved strategy and work plan aimed at enhancing consistency and quality of audit and assurance standards worldwide. Elevating Trust in Audit and Assurance: IAASB’s Strategy and Work Plan for 2024-2027reflects the crucial role of audit and assurance in fostering trust in the world’s economies.
"Audit and assurance play vital roles in the world’s economies,” said IAASB Chair Tom Seidentstein. “At their best, audit and assurance practitioners enhance trust in markets and assist in efficient, sustainable resource allocation. That is why the IAASB is dedicated to developing relevant, high-quality standards under a rigorous and transparent due process.”
The IAASB's previous strategy (2020-2023) saw significant progress on key objectives, including adopting agile methodologies and engaging with a broader range of stakeholders. Notable achievements include the suite of quality management standards, an enhanced special considerations standard for audits of group financial statements, the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (known as the ISA for LCE), and developing a proposed standard for sustainability assurance engagements, among other achievements.
Building upon these successes, the new Strategy reaffirms the IAASB's commitment to serving the public interest by developing globally accepted audit, review, and other assurance standards.
Key highlights of the Strategy include:
Completing priority audit and assurance projects, with emphasis on fraud, going concern, and sustainability assurance.
Commencing new initiatives and projects, including focusing on supporting the adoption and implementation on our overarching standard for sustainability assurance engagements, establishing an IAASB Technology Position, and conducting post-implementation reviews, as well as standard setting on, among other topics, audit evidence and risk response, materiality, and reviews of interim financial information.
Collaborating with official stakeholders across the external reporting ecosystem, including the International Ethics Standards Board for Accountants (IESBA), regulators, and standard setters, in addition to other stakeholders.
Engaging with regulatory and standard-setting partners to strengthen trust in markets globally.
Further implementing the Monitoring Group’s recommendations to enhance independence and accountability in standard setting.
IESBA, IAASB’s partner board, also issued its strategy and work plan for the same period today,Towards a More Sustainable Future: Advancing the Centrality of Ethics. It features IESBA’s vision and strategic goals, underpinning its ambition to achieve global recognition and acceptance of the International Code of Ethics for Professional Accountants (Including Independence Standards).
The IAASB's strategy and work plan for 2024-2027 is aimed at enhancing consistency and quality of audit and assurance standards worldwide and reflects the crucial role of audit and assurance in fostering trust in the world’s economies.
The International Federation of Accountants (IFAC) has released a new publication setting out four key areas where accountants need to update their knowledge to meet the growing demand for high-quality sustainability-related information. Equipping Professional Accountants for Sustainability: What's New and What Hasn't Changed speaks to the vital role accountants play in producing reliable sustainability-related data, reporting and assurance, as well as the importance of education and training in ensuring professional accountants are able to meet society’s needs.
Much of what accountants already do is transferable to sustainability; however, new topics and challenges require new ways of thinking and working. The framework aims to help professional accountants as well as professional accountancy organizations close any gaps between known and needed technical expertise, business acumen, behavioral competence, and ethics and professional values.
The publication was developed following previous sustainability and education research as part of work to revise the International Education Standards and with the support of the IFAC International Panel on Accountancy Education.
The publication is available on the IFAC website and complements IFAC's existing resources on sustainability, including webinars, podcasts, and publications, all of which are available on the IFAC Knowledge Gateway.
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 more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.
About the International Education Standards The International Education Standards (IESs), issued by the International Federation of Accountants, set forth the principles that professional accountancy organizations should follow to build a national accountancy profession that is fully capable of fulfilling the complex demands economies and societies place on it. The IESs are authoritative and are used by IFAC member organizations when setting education requirements for professional accountants and aspiring professional accountants.
