This standard sets out a comprehensive framework that covers all forms of inducement and is applicable to both professional accountants in business and professional accountants in public practice in situations involving the offering or accepting of an inducement.

The International Ethics Standards Board for Accountants^® (IESBA^®) today released new enhancements to its global ethics code which address more fully the responsibilities of professional accountants around the offering and accepting of inducements.

The revised standard sets out a comprehensive framework that more clearly delineates the boundaries of acceptable inducements, and guides the behavior and actions of professional accountants in business and in public practice in situations involving inducements.

“Incentives motivate behavior, and some inducements can be a powerful incentive to unethical behavior,” said IESBA Chairman Dr. Stavros Thomadakis. “This revised standard complements our standard on NOCLAR to offer a full system of ethical defenses that relate both to malfeasance committed by others and to accountants’ own involvement in potentially unethical behaviors.”

Central to this framework is a new intent test that prohibits the offering or accepting of inducements where there is actual or perceived intent to improperly influence the behavior of the recipient or of another individual. The framework also:

• Clarifies the meaning of an inducement;
• Establishes a requirement to understand and comply with laws and regulations that prohibit the offering or accepting of inducements in certain circumstances, such as in relation to bribery and corruption;
• Guides professional accountants in applying the enhanced conceptual framework underpinning the International Code of Ethics for Professional Accountants (including International Independence Standards) where there is no improper intent; and
• Provides enhanced guidance on the offering and accepting of inducements by professional accountants’ immediate or close family members.

The revised provisions become effective June 2019, including consequential amendments to the independence provisions of the Code addressing gifts and hospitality. The changes constitute the last piece of the recently revised and restructured Code.

About the IESBA

The IESBA is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the International Code of Ethics for Professional Accountants^TM (including International Independence Standards^TM), which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC. Please visit www.ethicsboard.org for more information, and follow us on Twitter @Ethics_Board.

The International Ethics Standards Board for Accountants (IESBA) welcomed the International Auditing and Assurance Standards Board (IAASB) Member and Deputy Chair of the IAASB, Ms. Megan Zietsman, along with IAASB Members Ms. Karin French (Quality Control Task Force Chair) and Mr. Ron Salole (Agreed-Upon Procedures Task Force Chair) via Webcast to present highlights of certain projects of interest to the IESBA Members.

The updated projects, include, proposed Quality Control at a Firm Level (ISQC 1), Quality Control at the Engagement Level (ISA 220), the proposed new Engagement Quality Control Standard (ISQC 2) and the proposed revisions to the Agreed-Upon Procedures International Standard on Related Services (ISRS 4400).

Highlights from the IESBA's March 12 - 14, 2017 meeting New York, NY.

• 00:12 - Introduction: Ken Siong, IESBA Technical Director
• 00:45 - Highlights & Key Developments: Stavros Thomadakis, IESBA Chairman
• 03:57 - Professional Skepticism: James Barbour, IESBA Member 
• 06:09 - Inducements: Michael Ashley, IESBA Member
• 11:12 - Fees: Ian McPhee, IESBA Member
• 13:01 - Closing Remarks: Ken Siong, IESBA Technical Director

This briefing note summarizes the non-assurance services issues that the IESBA has identified to-date, in particular, in relation to audit clients that are public interest entities. Some of the issues were raised by respondents to IESBA Exposure Drafts on Safeguards and the Structure of the Code and respondents to the IESBA’s November 2017 Fees Questionnaire. The paper is intended to facilitate a multi-stakeholder dialogue to explore possible solutions to the public interest issues that have been raised in relation to the provision of non-assurance services by audit firms.

The International Ethics Standards Board for Accountants^® (IESBA^®) seeks public comment by August 15, 2018 on its consultation paper, Professional Skepticism – Meeting Public Expectations.

In response to regulatory and other stakeholder feedback on the topic, the paper explores:

1. 1. The behavioral characteristics comprised in professional skepticism;
   2. Whether all professional accountants should apply these behavioral characteristics; and
   3. Whether the International Code of Ethics for Professional Accountants (including International Independence Standards) should be further developed to address behaviors associated with the exercise of appropriate professional skepticism.

Through this initiative, the IESBA also aims to reinforce the effective exercise of professional skepticism by auditors.

The consultation paper was developed following close coordination with the International Auditing and Assurance Standards Board (IAASB) and the International Accounting Education Standards Board (IAESB), and with advice from the IESBA Consultative Advisory Group.

The paper will form the basis for discussion with a wide range of stakeholders at a series of three global roundtables in Washington, DC, USA on June 11; Paris, France on June 15; and Tokyo, Japan on July 12.

To access the consultation paper and submit a comment by August 15^th, please visit.