- IESBA to analyze ethical and independence implications of private equity investment in accounting firms.
- It will assess the need for standard setting on alternative practice structures.
- In its March meeting, IESBA also agreed to develop new guidance on technology and AI, enhance its support for global implementation of the sustainability standards, and review the practical implementation of key ethics standards.
The International Ethics Standards Board for Accountants (IESBA) has agreed to launch a dedicated workstream to analyze issues relating to private equity investment in accounting firms from an ethical perspective. The objective is to assess the need for standard setting addressing alternative practice structures (APS), including those involving private equity investment.
The decision follows the previously published IESBA Staff Alert on Private Equity Investment in Accounting Firms (July 2025) and consideration of recent developments related to private equity investment in accounting firms, including a recent analysis by the International Federation of Accountants on the prevalence of such reality and the American Institute of Certified Public Accountants (AICPA) Professional Ethics Executive Committee’s December 2025 Exposure Draft on Proposed Revisions to the AICPA Code Related to Alternative Practice Structures.
The newly launched workstream will gather information and undertake analysis to support the IESBA’s assessment of whether a formal standard setting project is needed to address ethical considerations related to APS around the world. An update on the Private Equity Investment workstream is expected to be presented to the IESBA at its June 2026 meeting.
The Board also agreed on several other priority actions at its March 2026 meeting, including:
- Developing new non-authoritative guidance on technology and artificial intelligence to support professional accountants as the profession continues to evolve through technological transformations.
- Concentrating on global implementation of the IESBA’s sustainability standards ahead of their effective date this December.
- Issuing stakeholder surveys in early April to inform the post‑implementation review of the NOCLAR provisions and the Restructured Code, reinforcing the IESBA’s commitment to a comprehensive approach to standard-setting.
For more information, watch our recent “Message from the Chair” video and read the "IESBA Meeting Highlights and Decisions" document.
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 high-quality, international ethics (including independence) standards 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.
Contact Information:
Rui Peres Jorge
Director, Strategy and Communications
International Ethics Standards Board for Accountants (IESBA)
ruiperesjorge@ethicsboard.org | Direct: +351 966-301-383
Zsolt Bobis
Lead, Communications
International Ethics Standards Board for Accountants (IESBA)
zsoltbobis@ethicsboard.org