Firm Culture and Governance

The objective of the project is to develop a culture and governance framework that promotes, supports and reinforces a high standard of ethical behavior by a firm's leadership, other partners, and staff across all of the firm’s services, thereby helping the firm develop a reputation as a highly ethical firm, mitigate the risks of unethical behavior and strengthen public trust and confidence in all of its services.

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IESBA December 2025 Meeting Highlights

The IESBA considered and accepted a package of documents for further stakeholder engagement in Q1-Q2, 2026 in support of its strategic commitment to develop an accounting firm culture and governance (FCG) framework. The package includes a contextual piece that sets out the background to the development of IESBA viewpoints on each of the eight elements of the FCG framework and the nature and purpose of the IESBA viewpoints; an overarching piece that provides an overview of the eight FCG elements and their interconnectivity; the IESBA viewpoints; and a document that explains the linkages and differences between the IESBA viewpoints and ISQM 1.1

The IESBA will use the viewpoints as a tool for further dialogue with stakeholders to better inform its deliberations on how best to approach the development of the FCG framework at its June 2026 meeting. In this regard, the IESBA supported the Project Team’s proposed plan for stakeholder engagement on the IESBA viewpoints and the development of supporting materials or other initiatives in Q1 and Q2 2026.

The IESBA also supported the ongoing coordination with the IAASB and agreed to continue developing the linkages document to ISQM 1 to cover all eight elements of the FCG framework. The IESBA will receive an update from the Project Team at its March 2026 meeting.