00:12 - Introduction: Diane Jules, IESBA Deputy Director 00:56 - Highlights & Key Developments: Stavros Thomadakis, IESBA Chairman 04:23 - eCode: Don Thomson, eCode Working Group Chair 06:41 - Non-Assurance Services: Jens Poll, Working Group Member 11:48 - Fees: Ian McPhee, Working Group Chair 15:25 - Professional Skepticism: Patricia Mulvaney, Working Group Member 19:35 - Closing Remarks: Diane Jules
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;
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 AccountantsTM (including International Independence StandardsTM), 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).
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.
