IESBA’s snapshots provide short, non-technical overviews of IESBA projects. They explain the purpose, direction, and current focus in clear and accessible terms, alongside more detailed technical materials.

This Snapshot focuses on IESBA’s Firm Culture and Governance Project.

Q1. Why is the IESBA working on firm culture and governance?

Accounting firms and professional accountants play a critical public interest role in the global economy by fostering public trust in the financial and non-financial reporting ecosystem.

To meet these expectations, firms are increasingly addressing the need to build and sustain firm-wide ethical culture that supports a consistent, high level of ethical behavior across all service lines.

These efforts underscore an important observation that ethical failures within firms are rarely due to a lack of rules or standards alone. Often, they reflect deeper issues relating to the firm’s ethical culture.

In fact, extensive research demonstrates that ethical behavior in organizations is strongly influenced by firm culture, including elements such as leadership, governance, incentives, or accountability.

At present, there is no comprehensive global ethics baseline against which firms of different sizes and operating in different contexts can assess their ethical culture and governance practices across all activities.

Stakeholders have therefore expressed clear support for the IESBA to explore the development of a global, firm-level framework that complements the existing requirements in the IESBA Code - which focus primarily on individual professional conduct and independence requirements at individual and firm levels, rather than cultural or governance factors.

The Firm Culture and Governance (FCG) project responds to this public interest matter by examining how a global framework could support firms in strengthening the key elements that underpin a strong ethical culture.

Q2. What is the objective of the Firm Culture and Governance project?

The objective of the project is to develop a global culture and governance framework that can help firms build and sustain a strong ethical culture across the whole firm.

In the framework, the IESBA aims:

• To establish a global and consistent point of reference for firms to assess their practices on their ethical culture and governance practices
• For the framework to be principles-based, rather than prescriptive
• For it to be applicable to firms of different sizes and structures
• To promote long-term trust, ethical conduct, and the public interest, by complementing existing requirements

Q3. What has the IESBA done so far?

In 2024, a dedicated Working Group carried out research and outreach on accounting firm culture and governance and published a report identifying eight key interconnected elements that drive ethical culture in firms.

Based on this work, IESBA agreed to pursue a standard-setting project to develop a Firm Culture and Governance Framework comprising the eight elements (FCG Framework). The project also includes the development of non-authoritative guidance and other supporting materials or initiatives.

In June 2025, informed by stakeholder engagement that followed the publication of the report, including six global roundtables, IESBA agreed to develop:

• Guidance materials and other initiatives during 2025 and 2026; and
• A set of IESBA Viewpoints on each of the eight elements that drive ethical culture in firms to be used for further discussion with stakeholders in 2026.

This engagement will inform IESBA’s consideration, by June 2026, of how best to approach the development of the FCG Framework.

Q4. What are the IESBA Viewpoints?

IESBA concluded in December 2025 a set of Viewpoints that describe key characteristics of each of the eight elements of a FCG Framework. The Viewpoints:

• Summarize insights from research and stakeholder feedback
• Describe what ethical culture, principles, or other considerations could look like in practice
• Support dialogue and testing of the thinking going forward

The IESBA Viewpoints shared for engagement with stakeholders in 2026 are not the framework itself, but rather a tool to test, refine, and build consensus around what we expect, once completed, to be a powerful framework to underpin the overall resilience and success of the accounting sector and ultimately protect the public interest.

Q5. What are the eight elements of a Firm Culture and Governance Framework?

The eight elements that form the structure of an FCG Framework and that are covered by the IESBA Viewpoints are:

• Ethical leadership
• Oversight and governance
• Independent input
• Accountability across the firm
• Incentives and disincentives
• Open discussion and challenge
• Education and training
• Transparency

Together, these elements influence how ethical values are embedded into everyday decisions and behaviors within firms, helping to shape an organizational culture that prioritizes ethical values in decision-making at all levels and across all service lines of a firm.

Q6. What is the IESBA focused on in the first half of 2026?

The IESBA is taking a dialogue-driven, evidence-based approach to shaping its Firm Culture and Governance Framework and will be focused on in-depth, meaningful discussions on what an effective FCG Framework should entail.

The discussions will address issues such as:

• How a global and consistent baseline would help firms strengthen culture and governance across all service lines
• Whether a future framework should be part of the IESBA Code or available for voluntary adoption - and why
• Whether the IESBA Viewpoints are clear, workable, and proportionate, and which of them should become enduring principles (or what may be missing)

Q7. How can stakeholders engage and contribute to this work?

The engagement with stakeholders will be structured through the Firm Culture and Governance Dialogues initiative that will include:

• Targeted discussions and meetings at technical and strategic levels with firms, regulators, professional bodies, and other stakeholders
• Testing and refinement of the Viewpoints against real scenarios and experiences 
• Broader engagement through conferences, seminars, interviews, and ongoing communication

This engagement will inform the Board’s consideration of next steps.

Q8. What decisions will the IESBA consider in 2026?

By mid-2026, the IESBA expects to consider how best to take this work forward on the development of the FCG Framework, including:

• How the eight FCG elements should best be structured within a framework
• Which of the IESBA Viewpoints should evolve into principles integrated within the framework
• Whether such a framework should be positioned within the IESBA Code, or outside the Code and available for voluntary adoption

No decisions on how to approach the FCG Framework have been taken at this stage.

Annex: Further information and resources

Those interested in additional context, background, and technical details about the project may wish to refer to:

• Firm Culture and Governance Dialogues booklet

The booklet presents the Viewpoints on the eight elements of the Firm Culture and Governance Framework and sets out the objectives of the project and the dialogues planned for the first half of 2026.

• IESBA Briefing Note – IESBA Viewpoints on Firm Culture and Governance

Detailed background on the project, its objectives, the context, nature, and purpose of the IESBA Viewpoints and stakeholder engagement questions.

• Linkages between IESBA Viewpoints and ISQM 1

A paper explaining at a high-level how the IESBA Viewpoints relate to the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Quality Management 1 (ISQM 1), highlighting the linkages between the two as well as their differences such as their differing scopes and objectives.

• Firm Culture and Governance: Summary of Feedback from Global Roundtables

A summary of insights from six global roundtables held in New York, Melbourne, Brussels, Kuala Lumpur, and virtually for Africa and Latin America, involving more than 150 stakeholders from the regulatory, investor, standard-setting, firm, academic, and professional communities.

• Firm Culture and Governance Working Group – Final Report

Research, fact-finding, outreach, and early insights that informed the development of the FCG project, including the identification of the 8 fundamental elements of firm culture and governance.

• Organizational Culture and Behavior: A Synthesis of Academic Literature

A synthesis of academic research examining how organizational culture shape ethical behavior within organizations.

• IESBA website and social media channels

Regular updates on the Firm Culture and Governance project and the ongoing engagement with stakeholders. IESBA launches Firm Culture and Governance Viewpoints as it begins Asia outreach

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.

• IESBA launches its Viewpoints on Firm Culture and Governance, initiating a six-month global dialogue on the drivers of ethical culture in accounting firms.
• The launch coincides with IESBA’s Asia outreach to Singapore, Malaysia and Hong Kong SAR, engaging with regulators, professional bodies, firms, investors, CFOs and others on priorities shaping the profession in 2026.
• Discussions will focus on IESBA’s strategy for 2028–2031, sustainability-related ethics standards, lessons from the implementation of existing standards, firm culture and governance, private equity investment, technology and emerging ethical risks and trends.

The International Ethics Standards Board for Accountants (IESBA) today began a high-level outreach visit to Singapore, Malaysia and Hong Kong SAR, marked by the launch of its Viewpoints on eight fundamental elements of an ethical culture and governance framework for accounting firms. Learn more about the Firm Culture and Governance Project here.

The IESBA Viewpoints are designed to support global dialogue on key characteristics of elements such as ethical leadership, governance or incentives which influence ethical culture and behavior in accounting firms, informing the planned development of a global baseline.

Key topics on the agenda also include international and regional standard-setting developments, sustainability-related standards, lessons from the implementation of the Responding to Non-compliance with Laws and Regulations (NOCLAR) standard and the restructured IESBA Code, as well as technology-driven change and private equity investment in accounting firms.

During the visit, IESBA will engage with a broad range of stakeholders, including regulators, professional accountancy organizations, standard setters, accounting firms, investors, chief financial officers, professional accountants, authorities responsible for market integrity and the prevention of financial crime and others.

The outreach reflects Asia’s central role in the adoption and implementation of international ethics standards and the region’s importance to the global financial system and to IESBA’s work.

“Asia is at the forefront of many of the developments reshaping the accounting profession and the broader financial sector — from sustainability and technology to evolving business models and regulatory expectations,” said Gabriela Figueiredo Dias, Chair of IESBA. “This outreach is an opportunity to listen, exchange views and deepen engagement with stakeholders in a leading region who are shaping how ethics is applied in practice across the region.”

Firm Culture and Governance Viewpoints and Dialogues

The IESBA Viewpoints on Firm Culture and Governance, published today, respond to growing recognition that ethical behavior is shaped not only by rules and individual conduct, but also by organizational factors such as leadership, governance, accountability, incentives, openness and transparency, among others.

The Viewpoints are not a proposed framework. They are intended to stimulate reflection, learning and engagement, and to support informed dialogue on what a future global framework on firm culture and governance should look like.

Their publication marks the start of the Firm Culture and Governance Dialogues, a six-month global engagement initiative through which IESBA will test, refine and further develop its thinking in close consultation with stakeholders.

Supporting materials released include:

• A booklet presenting the Viewpoints on the eight elements of the Firm Culture and Governance Framework and outlining the objectives of the project and the dialogues planned for the first half of 2026;
• A Snapshot providing a short, non-technical overview of the project, the Viewpoints, upcoming discussions and key decisions expected in 2026;
• A Briefing Note setting out the Viewpoints, their context and objectives, engagement questions and next steps; and
• A high-level paper outlining linkages between the Viewpoints and International Standard on Quality Management 1 (ISQM 1).

“Trust has become a defining strategic asset. Organizations are increasingly judged not only on technical excellence or commercial success, but also on the values they demonstrate, the judgments they exercise under pressure, and the confidence they earn from markets, regulators, investors and society at large,” said Ms. Figueiredo Dias. “The IESBA Viewpoints are intended to support reflection and dialogue on principles that can reinforce trust and resilience.”

Asia outreach: meetings across Singapore, Malaysia and Hong Kong

During the January outreach, IESBA will engage with stakeholders across Singapore, Malaysia and Hong Kong, including professional accountancy organizations, regulators, standard setters, accounting firms, investors, CFOs, professional accountants, public authorities responsible for market integrity and financial crime prevention and others.

Singapore | 12–13 January 2026

The outreach begins in Singapore with meetings at the Institute of Singapore Chartered Accountants (ISCA), covering IESBA’s strategic direction, sustainability reporting, lessons from the implementation of NOCLAR and the restructured IESBA Code, and the IESBA Viewpoints on Firm Culture and Governance. A dedicated engagement with Chief Financial Officers will address ethical challenges facing professional accountants in business or others who operate in this or equivalent role.

IESBA will meet with the Association of Chartered Certified Accountants to discuss current priorities and projects.

On 13 January, IESBA will participate in a full-day program hosted by the Accounting and Corporate Regulatory Authority (ACRA), featuring discussions on IESBA’s strategy and key projects, panels on firm culture and governance and private equity investment in accounting firms, a fireside chat on technology and innovation, and further exchanges on lessons from implementation of IESBA Standards.

Malaysia | 15–16 January 2026

In Malaysia, IESBA will meet with the Malaysian Institute of Accountants (MIA) to discuss IESBA’s strategic direction, the adoption of the IESBA Code, as well as the challenges and ethical pressures facing the profession.

IESBA will also meet with the Securities Commission Malaysia (MY SECCOM), with discussions focusing on firm culture and governance, sustainability-related ethics, NOCLAR and emerging risks affecting trust and market integrity. 

Dedicated sessions hosted at MY SECCOM, will include discussions with The Malaysian Institute Of Certified Public Accountants, the Confederation of Asian and Pacific Accountants and Institutional Investors Council, as well as accounting firms and professional accountants in business to discuss national and regional priorities, as well as IESBA’s work plan, including the IESBA Viewpoints on Firm Culture and Governance and the future development of a practical global Framework, sustainability reporting, NOCLAR and other topical issues and trends.

Hong Kong SAR | 19–21 January 2026

The final leg of the visit will take place in Hong Kong SAR and will include a full-day program with the Hong Kong Institute of Certified Public Accountants (HKICPA), as well as meetings with the Securities and Futures Commission (SFC), the Accounting and Financial Reporting Council (AFRC), the Independent Commission Against Corruption (ICAC) and the Asian Corporate Governance Association (ACGA).

Discussions will address IESBA’s priorities going forward, the IESBA Code, the Viewpoints and the broader Firm Culture and Governance Project, and the role of ethics and professional judgment in combating financial crime.

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.

Media Contacts:

Rui Peres Jorge 
Director of Strategic Communications 
International Ethics Standards Board for Accountants (IESBA) 
ruiperesjorge@ethicsboard.org | Direct: +351 966-301-383

David Johnson 
Senior Manager
IESBA Communications
davidjohnson@ethicsboard.org | Direct: +1 (212) 471-8732

The International Federation of Accountants (IFAC) is pleased to announce the publication of the 2026 edition of the Handbook of International Education Standards. This new edition compiles the full suite of International Education Standards (IES) 1–8, along with the supporting Framework and Glossary, and incorporates all recently revised and updated standards.

The 2026 Handbook is organized to support the consistent adoption and implementation of the IESs, which establish the principles, concepts, and requirements that underpin high-quality accountancy education worldwide.

This edition includes:

• The Framework for International Education Standards, which outlines the foundational concepts for developing and maintaining professional competence.
• A Glossary of Terms, providing essential definitions used across the standards.
• IESs 1–6, addressing entry requirements to professional accounting education programs and the initial professional development of aspiring professional accountants.
• IES 7, Continuing Professional Development, establishing requirements for lifelong learning for all professional accountants.
• IES 8, Professional Competence for Engagement Partners, which outlines the competence demands for engagement partners responsible for audits of financial statements.
• Revisions to IES 2, 3, 4 and 6 aimed at strengthening global consistency in formal assessment and supporting emerging skills needs in areas including ethics and sustainability.

This Handbook includes revised standards that become effective on July 1, 2026 and replaces the 2019 edition.

The new Handbook is available for download on the IFAC website.

About IFAC
IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.

The International Auditing and Assurance Standards Board (IAASB) has developed an approach for maintaining its auditing standard for smaller and less complex entities, known as the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (the ISA for LCE).

The approach is detailed in an Approach Statement that promotes transparency and execution consistency. It establishes a mechanism for updating the ISA for LCE that emphasizes that revisions to the ISA for LCE should be:

• Relevant in the context of the typical nature and circumstances of an audit of a less complex entity; and
• Aligned, in a proportionate manner, with the core requirements and concepts of the International Standards on Auditing.

The Approach Statement sets out the context, purpose, process, responsibilities, outputs, and timing for maintaining the ISA for LCE. It also describes the steps the IAASB will follow when developing revisions to the ISA for LCE in response to new or revised auditing standards.

To learn more about the maintenance of the ISA for LCE, visit www.iaasb.org/ISAforLCE.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.

This paper explains at a high level the linkages, as well as the key differences, between the IESBA Firm Culture and Governance (FCG) viewpoints (IESBA viewpoints) accepted by the Board at its December 2025 meeting and ISQM 1.[It demonstrates the mutually supportive nature of the IESBA viewpoints and ISQM 1 while recognizing the distinctions in their objective

This briefing note outlines key viewpoints on firm culture & governance as part of its ongoing project to promote high ethical standards in accounting firms worldwide. It introduces eight foundational elements, designed to guide firms in building and sustaining a strong ethical culture.