Today, the International Auditing and Assurance Standards Board (IAASB) released the Post-Exposure Consultation: Invitation to Comment Before the IAASB Finalizes the Narrow Scope Amendments to the ISQMs and ISAs as a Result of the Revisions to the Definitions of Listed Entity and Public Interest Entity in the IESBA Code.

This consultation sets out the IAASB’s final position, rationale, and pathway to broader differential requirements relating to the definitions of listed and public interest entities in the International Standards on Quality Management (ISQMs) and International Standards on Auditing (ISAs). It includes an Invitation to Comment for stakeholders to share observations that might be relevant to the IAASB prior to finalizing the narrow scope amendments to the ISQMs and ISAs, and to answer a few specific questions about related forward-looking matters.

The IAASB’s final position is different from the position that was presented in the Exposure Draft of the IAASB PIE Track 2 Project due to a divergence issue between the IAASB PIE proposals and the IESBA PIE Revisions. The IAASB’s Post-Exposure Consultation provides stakeholders the opportunity to familiarize themselves with the identified divergence issue and how this has informed the IAASB as it advanced the IAASB PIE proposals, including the IAASB’s rationale in arriving at its final position.

The IAASB remains committed to the key elements of its original proposals that were presented in the Exposure Draft of the PIE Track 2 Project. Therefore, the IAASB has agreed to revisit at a future date the decision to adopt the definition of PIE in the IESBA Code (adapted as necessary for the ISQMs and ISAs) and extending differential requirements to apply to audits of PIEs.

How to Comment
The IAASB invites all stakeholders to comment on this Post-Exposure Consultation using the digital Response Template, which is available on the IAASB website. Feedback is requested by March 27, 2025.

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.

International auditors have been given new guidance on what to check when assessing firms' environmental, social and governance claims - and how - as part of efforts to increase rigour and consistency, the chair of the industry's global ethics watchdog told Reuters. Continue reading at Reuters.com.

The IAASB is pleased to contribute to the new book, For the World’s Profit: How Business Can Support Sustainable Development, published by The Brookings Institute. IAASB Chair Tom Seidenstein and Former Board Member Warren Maroun co-authored a chapter on the rollout of International Standard on Sustainability Assurance (ISSA) 5000 and the evolving assurance ecosystem.

This volume explores key debates shaping the future of business and sustainability, including value creation, risk management, and corporate accountability. The IAASB’s contribution highlights the importance of high-quality assurance for sustainability reporting and the global adoption of ISSA 5000, ensuring transparency, credibility, and trust in sustainability-related information.

For more information, visit The Brookings Institute website.

The potential for an internationally agreed baseline on which to build the sustainability reporting ecosystem is within reach, says IAASB Chair Tom Seidenstein, but collaboration is key.

Continue reading on the ICAEW website.

The International Auditing and Assurance Standards Board (IAASB) and the International Accreditation Forum (IAF) have formalized plans to collaborate, reinforcing a shared commitment to high-quality sustainability assurance. This partnership aims to enhance trust in corporate sustainability disclosures by establishing a strong global framework for assurance.

In its letter of intent, IAF highlighted its alignment with the IAASB’s goal of promoting consistency and quality in assurance practices worldwide. A key aspect of this collaboration includes IAF’s commitment to supporting the use of the IAASB’s International Standard on Sustainability Assurance 5000, in accredited verification activities where appropriate. Additionally, IAF will engage with the International Federation of Accountants (IFAC) to seek agreement on intellectual property considerations related to referencing IAASB standards.

IAASB Chair Tom Seidenstein welcomed IAF’s proposals, emphasizing the importance of this collaboration in strengthening global sustainability assurance. He highlighted ISSA 5000 as a global baseline for assurance engagements on general-purpose reported sustainability information and underscored the broader opportunity to advance a comprehensive suite of engagement performance, quality management, and ethics and independence standards for use by all sustainability assurance practitioners. Mr. Seidenstein expressed enthusiasm for this partnership, noting that it will help ensure consistency and quality in sustainability assurance engagements in the public interest and reduce the risk of fragmentation. The IAASB looks forward to supporting discussions between IAF and IFAC regarding the use of ISSA 5000 and other IAASB standards for accreditation purposes.

“This collaboration signifies our shared commitment to enhancing the reliability of sustainability disclosures, which are essential for building trust with stakeholders and promoting sustainable practices worldwide,” said Emanuele Riva, IAF Chair. “We recognize the value of IAASB standards, which integrate well and complement the verification activities on ESG issues that accredited conformity assessment bodies have been carrying out for years, even in regulated areas. We look forward to working with IAASB to further integrate IAASB standards into our accredited verification activities, reinforcing our ongoing commitment to sustainability assurance.”

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

From January 21 to 24, 2025, Tom Seidenstein, IAASB Chair and Josephine Jackson, IAASB Vice-Chair visited Japan. Tetsuya Mogi, JICPA Chairman and President and Takako Fujimoto, JICPA Deputy President interviewed with Mr. Seidenstein and Ms. Jackson.

Mr. Mogi, JICPA Chairman and President: Firstly, I would like to talk about International Standard on Sustainability Assurance 5000 "General Requirements for Sustainability Assurance Engagements" (ISSA 5000), which was published in November 2024. We believe the publication of ISSA 5000 is a great milestone for the IAASB as well as for stakeholders across the globe. Tom, could you please briefly introduce the key features of ISSA 5000?

Continue reading the article on the JICPA website in English or Japanese.

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

Our advisory groups play a vital role in connecting the global accountancy profession by bringing together diverse expertise and perspectives from our membership and leading accounting and finance professionals. By fostering collaboration and innovation, these groups help us shape the future of the profession, ensuring it remains globally connected and committed to serving the public interest. They also help us provide value back to our membership by working with us to develop tools and resources that address trending challenges and opportunities.  

• The International Panel on Accountancy Education supports the advancement of accountancy education at the global level.  
• The Professional Accountancy Organization Development and Advisory Group helps support strong, sustainable professional accountancy organizations.  
• The Professional Accountants in Business Advisory Group considers key global trends in the context of the issues facing chief financial officers and finance functions, as well as boards and their audit committees. 
• The Small and Medium Practices Advisory Group provides input to the independent standard-setting boards, develops practical guidance and resources, and promotes the visibility and recognition of SMPs and SMEs.  

We extend a very warm welcome to all our new advisory group members and express our sincere gratitude and farewells to departing members, listed below, for volunteering their time to strengthen our profession.  

Lee White, IFAC Chief Executive Officer said: “We are thrilled to welcome these distinguished professionals to our advisory groups. Their expertise and dedication will enhance our efforts to strengthen global collaboration and support the profession in meeting the challenges and opportunities of today’s rapidly changing world. Thank you to our outgoing members for generously sharing your time and insights with us—we invite you to stay connected and continue to be part of our collective voice shaping the future of the accountancy profession.” 

International Panel on Accountancy Education  

New Members 

• Jennifer Eberman, Director, Assurance and Financial Reporting, Global Audit and Assurance Learning | Deloitte Touche Tohmatsu Limited (Canada) 
• Maria Escobar, Dean of the Faculty of Public Accounting, Universidad Externado de Colombia | Instituto Nacional de Contadores Públicos de Colombia (INCP) (Colombia) 
• Geoffrey Injeni, Faculty and Leadership/Management Consultant, Strathmore University Business School | Institute of Certified Public Accountants of Kenya (ICPAK) (Kenya) 
• Manil Jayesinghe, Board Member, Securities & Exchange Commission of Sri Lanka | Institute of Chartered Accountants of Sri Lanka (ICASL) (Sri Lanka) 
• Mirela Paunescu, Associate Professor, Bucharest University of Economic Studies | Corpul Expertilor Contabili si Contabililor Autorizati din Romania (CECCAR) (Romania) 
• Qi Zhang, Professor, Zhongnan University of Economics and Law | Chinese Institute of Certified Public Accountants (CICPA) (China) 

Departing Members 

• Adriana Florina Popa, Professor, Academia de Studii Economice din București | CECCAR (Romania) 
• Chaaminda Kumarasiri, Chairman, ACCA Sri Lanka | ICASL (Sri Lanka) 
• Gabriela-María Farías-Martínez, Associate Dean of Faculty Development, School of Business, Tecnológico de Monterrey | Instituto Mexicano de Contadores Públicos (IMCP) (Mexico) 
• Greg Owens, Director, Global Assurance, BDO Global | BDO Global (United Kingdom) 
• Innocent Okwuosa, Chief Executive Officer, Entop Consulting Ltd | Institute of Chartered Accountants of Nigeria (Nigeria) 
• Stacy-Ann Golding, Managing Director, S.N. Golding Financial Services Limited | Institute of Chartered Accountants of Trinidad and Tobago (Trinidad and Tobago) 
• Thorben Ehrlich, Global Audit & Assurance Chief Learning Officer, Deloitte | Deloitte (Germany) 
• Yoke Kai Chan, Head, Accountancy at Sim University | Institute of Singapore Chartered Accountants (Singapore) 

Professional Accountancy Organization Development and Advisory Group  

New Members 

• Kate Holroyd-Smith, Director of International Development, Institute of Chartered Accountants in England & Wales (ICAEW) | ICAEW (United Kingdom) 
• Brett Maloney, Chief Operating Officer, Institute of Public Accountants (IPA) | IPA (Australia) 
• Verily Kearoma Molatedi, Chief Executive Officer, Botswana Institute of Chartered Accountants (BICA) | BICA (Botswana) 
• Luisa Salcedo, Chief Executive Officer, INCP | INCP (Colombia) 
• Jingshi Wang, Deputy Director of Research and Development, CICPA | CICPA (China) 

Departing Member 

• Andrew Conway, Chief Executive Officer, IPA | IPA (Australia) 

Professional Accountants in Business Advisory Group  

New Members 

• Lei Chen, Executive Vice President & Board Director, State Grid Overseas Investment Limited | CICPA (China) 
• Zekeriya Demir, Chief Financial Officer, Turkish Technic Inc | Union of Chambers of Certified Public Accountants Turkey (TÜRMOB) (Türkiye) 
• Lynda Gimena Estupiñán Peñaloza, Accounting Director - Americas (NA & LATAM) Region, Medtronic Shared Services Americas SAS | INCP (Colombia) 
• Ashish Thatte, Partner, Joshi Apte and Associates Firm of Cost and Management Accountants | Institute of Cost Accountants of India (ICMAI) (India) 

Departing Members 

• Zia ul Mustafa Awan, President, House of Professionals Inc.| Institute of Cost and Management Accountants of Pakistan (Pakistan) 
• Anastasija Boljević, Secretary General, Institute of Certified Accountants of Montenegro (ICAM) | ICAM (Montenegro) 
• Ibrahim Murat Çağlar, Chief Financial Officer, Sanovel Ilac Sanayi ve Ticaret A.S. | TÜRMOB (Türkiye) 
• Ruth Gardiner-Forbes, President and Chief Executive Officer, FortisTCI | Institute of Management Accountants (IMA) (Turks and Caicos Islands) 
• Maria del Dado Alonso Sanchez, CFO, Berlin Brands Group | IMA (Spain) 

Small and Medium Practices Advisory Group  

New Members 

• Eleni Ashioti, Head of Technical and Professional Matters, The Institute of Certified Public Accountants of Cyprus (ICPAC) | ICPAC (Cyprus) 
• Rogelio Avalos, Director of Risk and Quality, Baker Tilly Mexico | IMCP (Mexico) 
• Hans Raj Chugh, Managing Partner, ASHM & Associates | The Institute of Chartered Accountants of India (ICAI) (India) 
• Catherine Hardinge, Compliance Partner, Price Bailey LLP | ICAEW (United Kingdom) 
• Mohanad Taha Khaled, Managing Partner, BDO Egypt | ACCA (UK/Egypt) 
• Kelly Khalilieh, Partner, Professional Standards & Quality Managment, McGovern Hurley LLP | CPA Canada (Canada) 
• George Mokua, Managing Partner, Mokua Onwonga & Co | ICPAK (Kenya) 
• Chongwon Yoon, Director, Grant Thornton Daejoo | Korean Institute of Certified Public Accountants (KICPA) (South Korea) 

Departing Members 

• Alexandra Peñuela Cuesto, Partner, KPMG Colombia | INCP (Colombia)
• John Nagy, Director, Reid Hurst Nagy Inc. | CPA Canada (Canada)
• Yunjin Oh | KICPA (South Korea)
• Alex Peal, Partner and Joint Managing Partner, James Cowper Kreston | Consultative Committee of Accountancy Bodies (United Kingdom)
• Rajesh Sharma, Partner, RPA Associates | ICAI (India) 

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) and the International Ethics Standards Board for Accountants (IESBA) today launched an integrated effort to support effective implementation of their landmark standards aimed at advancing trust and transparency in sustainability reporting and assurance.

Taken together, the IAASB and IESBA sustainability-related standards, as well as the new IESBA standard on using the work of experts, provide a unified global approach to address the growing demand for trustworthy sustainability information to support stakeholder decisions.

These standards establish clear expectations for ethical behavior in sustainability reporting and assurance and provide more specific requirements for practitioners and organizations in relation to assurance engagements on sustainability information. The IAASB’s ISSA 5000 and the IESBA’s IESSA share five common goals:

• Equipping global markets with a cohesive package of standards. After robust and close coordination, the IAASB and IESBA developed comprehensive, interoperable global standards for assurance, ethics, and independence for sustainability assurance engagements.
• Offering a global baseline and leveling the playing field by meeting market demands and regulatory calls and expectations for profession-agnostic global standards.
• Providing a framework-neutral approach that allows ISSA 5000 and IESSA to be applied in relation to sustainability information prepared under any suitable sustainability reporting framework.
• Promoting informed decision-making based on trust and independently assured sustainability information.
• Mitigating risks of fraud, including greenwashing, and non-compliance with laws and regulations.

A Unified Vision for Sustainability Reporting

“The interoperable package of ISSA 5000 and IESSA represents an important evolution in global sustainability reporting and assurance,” said Tom Seidenstein, Chair of the IAASB. “These standards establish the necessary technical and ethical pillars to ensure that qualified practitioners could consistently perform high-quality assurance engagements on sustainability information.”

Gabriela Figueiredo Dias, Chair of the IESBA, added, “Ethics is the foundation of trust. With these standards, we are equipping preparers and practitioners with the tools needed to uphold integrity and foster transparency in sustainability reporting. Together, the IAASB and IESBA are setting a global standard for accountability and professionalism.”

Effective Dates and Next Steps

In jurisdictions adopting the standards, both ISSA 5000 and IESSA become effective for periods starting on or after December 15, 2026, with early adoption permitted and encouraged. The IAASB and IESBA will provide ongoing support through webinars, implementation guidance, and continued implementation monitoring and feedback channels to ensure smooth and effective adoption.

Stay updated by following IAASB and IESBA on LinkedIn or registering and subscribing to receive announcements directly in your inbox. For more information, visit the joint IAASB and IESBA web page: www.ethicsandaudit.org/TrustInSustainability

ADDITIONAL INFORMATION

IAASB’s ISSA 5000: A Framework for Credible Sustainability Assurance

International Standard on Sustainability Assurance 5000 (ISSA 5000) provides a principles-based framework for conducting assurance engagements on sustainability information reported by entities. The standard is designed to:

• Enhance Reliability and Transparency: Focused on enhancing the credibility of sustainability information reported, ISSA 5000 addresses the growing need for assured sustainability information among investors, regulators, and stakeholders.
• Adapt to Global and Local Contexts: The standard is scalable and adaptable to regional regulatory requirements, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), and can be used with any sustainability reporting framework, standard or other suitable criteria.
• Support Diverse Practitioners: Applicable to all assurance providers, ISSA 5000 ensures consistency and rigor, incorporating materiality concepts and proportionality for organizations of all sizes.

To support practitioners, the IAASB has released new guidance today, including an implementation guide, fact sheet, FAQs, and FAQ video series, and will hold a webinar series in the coming months.

IESBA’s Global Ethics Sustainability Standards: A Foundation for Ethical Mindset and Trust

The International Ethics Standards for Sustainability Assurance (including International Independence Standards (IESSA), the provisions related to sustainability reporting, and the new standards addressing using the work of an external expert in the International Code of Ethics for Professional Accountants (including International Independence Standards), establish a strong ethical foundation for sustainability reporting and assurance engagements. The standards are grounded in the fundamental ethical principles for reporting and assurance that underpin the provision of high-quality sustainability information by:

• Offering a coherent ethical infrastructure for sustainability reporting and assurance that is fit-for-purpose. The standards specifically address challenges inherent to sustainability information, such as the use of immature data and systems, and the forward-looking nature of the information.
• Mitigating unethical conduct, including greenwashing risks, particularly by raising awareness of ethical threats and helping practitioners address challenges such as: non-compliance with laws and regulations^TM (NOCLAR^®); pressure to act unethically; independence issues; and ethical risks relating to using the work of external experts.
• Enhancing investor protection and building trust in sustainability information by aligning best ethical practices among all practitioners.
• Promoting judgments and decision-making that help prevent reputational risks, foster an ethical mindset, and attract skilled and purpose-driven professionals.

Alongside today’s published standards, the IESBA has released Basis for Conclusions documents, fact sheets and technical overviews on the standards. Additional implementation support material and activities, including a series of webinars (see below) and implementation guides, will follow in the near future.

Upcoming IESBA Webinars 

To help stakeholders understand and use the new standards, the IESBA is holding a series of webinars at various times to accommodate a global audience. 

• IESBA Sustainability-related Ethics and Independence Standards 
  • IESBA Sustainability Overview and Sustainability Reporting 
    • February 18 at 14.00 UTC (9.00am ET)
    • February 26 at 01.00 UTC (8.00pm ET February 25)
  • Key Topics in the IESSA 
    • February 19 at 14.00 UTC (9.00am ET)
    • February 27 at 00.00 UTC (7.00pm ET February 26)
  • IESSA Independence Standards: A Deep Dive 
    • February 20 at 13.00 UTC (8.00am ET)
    • February 28 at 00.00 UTC (7.00pm February 27)
• Using the Work of an External Expert
  • March 3 at 23.00 UTC (6.00pm ET) 
  • March 4 at 13.00 UTC (8.00am ET) 

About IAASB and IESBA
The International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants are part of the International Foundation for Ethics and Audit (IFEA), a nonprofit organization that supports high-quality, international ethics, audit, and assurance standards in the public interest. The IAASB and IESBA develop and issue their standards independently and in accordance with an approved due process and the Public Interest Framework, overseen by the Public Interest Oversight Board.

The IAASB develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements.

The 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.

For copyright, trademark, and permissions information, please visit Permissions.

The International Ethics Standards Board for Accountants (IESBA) welcomes the Public Interest Oversight Board’s (PIOB) important decision to certify its Global Ethics Sustainability Standards and the International Organization of Securities Commissions (IOSCO) Statement of Support calling on its members to apply or be informed by the new framework. 

The Global Ethics Sustainability Standards include the International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and the revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) related to sustainability reporting and to the use of the work of an external expert.

Reacting to the PIOB’s Certification and IOSCO’s Statement of Support, Gabriela Figueiredo Dias, Chair of IESBA said:

“The certification of IESBA’s new ethics standards framework for Sustainability and Experts, along with IOSCO's call for its members to adopt or be informed by the framework, marks a significant step to cement ethics as the foundation of trust and accountability in sustainability reporting and assurance. The global sustainability standards infrastructure is now complete, with the ethics piece providing foundational instruments to underpin transparent, relevant and trustworthy sustainability information. Looking forward to the joint launch with IAASB of the new ethics and assurance standards. Join us on 27 January.”

These landmark new standards provide a robust ethical framework for reporting and assuring sustainability-related information that promotes high quality, reliable information for decision-making by investors, lenders, customers, suppliers, government, regulators and other stakeholders.  

The IESSA and related revisions to the Code, including regarding using the work of an external expert, address critical risks to the integrity, quality and effectiveness of sustainability reporting and assurance such as bias, conflicts of interest, pressure to act unethically, fraud including greenwashing, non-compliance with laws and regulations, and threats to the independence of the assurance practitioners.

The final standards can be found on the IESBA’s website https://www.ethicsboard.org/standards-pronouncements.

The official launch of the new standards will take place on January 27, 2025, jointly with the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Sustainability Assurance 5000 (ISSA 5000). After robust and close coordination, the IESBA and IAASB developed comprehensive, interoperable global standards for assurance, ethics, and independence for sustainability assurance engagements.           

On January 1, 2025, the International Ethics Standards Board for Accountants (IESBA) welcomed two new members following their appointments by the Public Interest Oversight Board (PIOB) in November 2024.

• Nancy Miller (USA), Managing Director in Risk Management - Audit and Independence, KPMG - “The opportunity to collaborate with a diverse group of accomplished professionals, to continue IESBA’s mission, is a unique and important role that I am honored to hold. I hope to bring my background, working in both very small and very large accounting firms, to support strong international ethics standards that fulfill obligations to comply with the underlying principles while drafting standards that are clear, operationally sound and can be consistently applied.” 
• Obichukwu Nwazota (Nigeria), Managing Consultant, UGN Consulting Services Ltd - “Accountants are profoundly essential to a sustainable economic future, providing financial and non-financial insights that drive decision-making across diverse sectors and levels, with far-reaching local and global impacts. To maintain the public trust and proper functioning of economies, high-quality ethical standards for accountants are critical. It is a great privilege to join the IESBA and contribute to the enhancement of its high-quality ethical standards and strengthening their implementation globally in the public interest.”

The IESBA also welcomed the appointment of Channa Wijesinghe FCPA (Australia) as the Board’s Vice Chair. Channa, the CEO of the Australian Accounting Professional & Ethical Standards Board (APESB), joined the Board in 2022. In addition to Channa, Mark Babington (United Kingdom), Christelle Martin (France), and Rich Huesken (USA) were all reappointed to the Board.

"It is my pleasure to welcome Nancy and Obichukwu to the IESBA. I also want to thank Channa for accepting the important role of Vice-Chair and congratulate him on his appointment, as well as Mark, Christelle, and Rich on their reappointments," said IESBA Chair Gabriela Figueiredo Dias, who added: "As we take on critical issues of global importance—such as ethics in sustainability reporting and assurance, accounting firm culture and governance, and expanding the scope of the Code—having a mix of new perspectives and experienced voices is essential. Nancy and Obichukwu bring fresh insights and expertise, while Channa’s leadership as Vice Chair, along with the deep knowledge of our returning members, provides continuity and strength to the Board. Together, this dynamic group will help us achieve our ambitious goals and continue to lead with ethics to make a meaningful impact in the public interest. I am looking forward to working with them over the next term.”

The PIOB’s Invitation for Applications for IESBA members for terms of service beginning in January 2026 will be open in February. The IESBA encourages qualified candidates to apply.