Earlier today, the Staff of the American Institute of Certified Public Accountants (AICPA), the International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) jointly released the publication, Using Specialists in the COVID-19 Environment: Including Considerations for Involving Specialists in Audits of Financial Statements.

The publication provides guidance to assist professional accountants in business and in public practice determine when there might be a need to use the services of a specialist to assist in performing specific tasks and other professional activities within their employing organizations, and in serving their clients in the COVID-19 environment. The publication also highlights relevant ethical considerations for accountants when thinking about using a specialist, as well as circumstances that indicate a need for a specialist during an audit of financial statements.

The publication was developed by the Staff of the AICPA under the auspices of a Working Group formed by the IESBA and national ethics standard setters (NSS) from Australia, Canada, China, South Africa, the UK and the US. Chaired by Mr. Richard Fleck, IESBA Deputy Chair, the Working Group’s mandate is to develop implementation support resources to assist accountants effectively apply the International Code of Ethics for Professional Accountants (including International Independence Standards) when facing circumstances created by the COVID-19 pandemic. The publication benefited from input from IESBA and IAASB Staff.

The publication can be found on the IESBA’s and IAASB’s COVID-19 resource pages. The Working Group has committed to developing additional COVID-19 guidance in the coming weeks.

About the IESBA-NSS Working Group

The Working Group organizations comprise: APESB (Australia); Chartered Professional Accountants of Canada; the Chinese Institute of Certified Public Accountants; the Independent Regulatory Board for Auditors (South Africa); the UK Financial Reporting Council; and the American Institute of Certified Public Accountants (US).

About AICPA

The American Institute of Certified Public Accountants (AICPA) is the world’s largest member association representing the accounting profession. The AICPA’s history of serving the public interest stretches back to 1887. Today, you’ll find 431,000+ members in 130 countries and territories, representing many areas of practice, including business and industry, public practice, government, education and consulting.

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).

About IAASB

The International Auditing and Assurance Standards Board (IAASB) 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.

Highlights from the IPSASB December 2020 virtual meeting:

• 00:00     Welcome and introduction
• 00:36     Chair’s meeting overview
• 02:10     Approval of COVID-19: Deferral of Effective dates 
• 03:12     Approval of Non-Authoritative Amendments to IPSAS 41, Financial Instruments 
• 04:14     Approval of Exposure Draft 74, IPSAS 5, Borrowing Costs, Non-Authoritative Guidance 
• 06:02     Approval of Exposure Draft 79, Assets Held for Sale and Discontinued Operations 
• 07:20     Natural Resources 
• 10:17     Conceptual Framework - Limited Scope update
• 11:12     Measurement
• 17:02     Closing Remarks

The International Ethics Standards Board for Accountants (IESBA) today released revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to better promote the role and mindset expected of all professional accountants.

The revisions explicitly recognize that the accountancy profession is entrusted with public confidence in the wide-ranging roles it plays in society and that such confidence is based on the skills and values it brings to its professional activities. Importantly, they reaffirm the profession’s responsibility to act in the public interest and the fundamental role of the Code in meeting that responsibility.

Among other matters, the revisions:

• Reinforce aspects of the principles of integrity, objectivity and professional behavior;
• Raise behavioral expectations of all professional accountants through requiring them to have an inquiring mind as they undertake their professional activities;
• Emphasize the importance of accountants being aware of the potential influence of bias in their judgments and decisions; and
• Highlight the supportive role the right organizational culture can play in promoting ethical conduct and business.

“The ethical principles and behavioral expectations embodied in the Code are the bedrock of the accountancy profession,” said Dr. Stavros Thomadakis, IESBA Chairman. “The profession is a major player in the global financial ecosystem and an indispensable facilitator of economic growth. The enhancements we have made to the Code speak to the importance of protecting and strengthening public trust in it across its varied roles and activities.”

Throughout this project, the IESBA has benefited from coordination with the International Auditing and Assurance Standards Board (IAASB) and the former International Accounting Education Standards Board (IAESB) on issues common to their standards, and especially in developing the provisions addressing the mindset expected of professional accountants.

The “role and mindset” revisions will become effective on December 31, 2021.

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).