On January 1, 2022, Ms. Gabriela Figueiredo Dias of Portugal became the first Chairwoman of the IESBA. On January 25, 2022, Ms. Dias offered insights into her background, why she is excited to lead the Board, and what she sees ahead for the IESBA and the accountancy profession. 

The International Ethics Standards Board for Accountants (IESBA) will hold a series of three global virtual roundtables to obtain stakeholder feedback on matters it is considering relating to the development of an ethics standard addressing the provision of tax planning and related services by professional accountants in business (PAIBs) and professional accountants in public practice (PAPPs).

In recent years, much public attention has focused on the topic of tax planning and related services, notwithstanding the legality of the tax mitigation schemes, structures or transactions to achieve desired tax outcomes. Questions have been raised regarding the ethical implications for integrity and professional behavior, among other fundamental ethics principles, when PAIBs are involved in developing or implementing tax strategies that are perceived as “aggressive,” or when PAPPs provide advice to their clients on such strategies. The issue is of such major public interest significance that it has been discussed on the G20 agenda.

In light of the public concerns, the IESBA committed in its Strategy and Work Plan 2019-2023 to understand and address the ethical implications of “aggressive tax planning” as it relates to the role of PAIBs and PAPPs. Following fact finding, the IESBA initiated a project aimed at developing a principles-based framework to guide PAIBs’ and PAPPs’ ethical conduct when providing tax planning services to their employing organizations and clients, respectively.

Save the dates! The roundtables will be held virtually during these sessions:

• Monday April 25, 11 am-3 pm EDT
• Tuesday April 26, 8 am-12 pm EDT
• Thursday April 28, 12 am-4 am EDT

Would you like to attend?

As space is limited, attendance will be by invitation only. Register your interest at TPRoundtables@ethicsboard.org by March 31, 2022, indicating your name, job title, organization, location and session. An invitation will follow shortly!

Who should attend?

Members of the investor and corporate governance communities, preparers of financial statements, regulators including tax authorities, international organizations, national standards setters, accountancy firms including tax practitioners, professional accountancy organizations, other professions involved in providing tax planning and related services (e.g., the legal profession), and academics.

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).

All IFAC member organizations are required to establish, operate, or otherwise demonstrate plans to meet IFAC Statement of Membership Obligation 6 (SMO 6) on Investigation & Discipline (I&D).

This self-assessment checklist will help professional accountancy organizations:

The International Ethics Standards Board for Accountants (IESBA) today released for public comment the Exposure Draft Proposed Revisions to the Code Relating to the Definition of Engagement Team and Group Audits.

The proposed revisions establish provisions that comprehensively address independence considerations for firms and individuals involved in an engagement to perform an audit of group financial statements. The proposals also address the independence implications of the change in the definition of an engagement team―a concept central to an audit of financial statements―in the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Auditing (ISA) 220, Quality Management for an Audit of Financial Statements.

“Auditor independence, in fact and in appearance, is fundamental to public trust and confidence in the financial statement audit, which in turn plays a major role in safeguarding the integrity of the financial system,” said IESBA Chair Ms. Gabriela Figueiredo Dias. “These proposals bring much needed clarifications and reinforcement in an area of auditor independence that can be especially challenging, given that many audits are performed for the largest and most complex groups around the world. I wish to acknowledge the close coordination with, and support of, the IAASB in developing those proposals.”

Among other matters, the proposals:

• Establish new defined terms and revise a number of existing terms, including for application with respect to independence in a group audit context.
• Clarify and enhance the independence principles that apply to:
  • Individuals involved in a group audit.
  • Firms engaged in the group audit, including firms within and outside the group auditor firm’s network.
• More explicitly set out the process to address a breach of an independence provision at a component auditor firm, including reinforcing the need for appropriate communication between the relevant parties and with those charged with governance of the group.
• Align a number of provisions in the Code to conform to changes in the IAASB’s Quality Management standards.

The development of the proposals has benefited from close coordination with the IAASB’s group audits and quality management projects.

How to Comment 

The IESBA invites all stakeholders to comment on the ET-GA ED by visiting the IESBA’s website. Comments are requested by May 31, 2022.

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).