With the emergence of widespread economic and political uncertainty in 2022 in the wake of the COVID-19 pandemic, IFAC highlights the interconnection between global cooperation, the sustainability agenda, the need for strong public financial management (PFM) and the fight against corruption. IFAC’s 2022 G20 Call to Action builds off the four priorities from IFAC’s 2020 G20 Call to Action and the two key actions set out in 2021 to emphasize that we cannot make progress on any of these issues in isolation.

“Tremendous interconnectivity is required if we are to make any significant progress toward achieving the UN’s Sustainable Development Goals. This is not just within the accountancy profession, but also between the profession and other UN SDG stakeholders. We commend the efforts of the G20, and also call on G20 leaders to do even more,” said CEO Kevin Dancey.

“At the same time, the accountancy profession will continue to deploy its unique skills and competencies to support strong and sustainable public and private sector organizations, and strong and sustainable financial markets and economies. This is our public interest mandate.”

IFAC’s 2022 Call to Action and its focus on sustainability-related reporting standards, public financial management, and anti-corruption aligns with IFAC’s IMPACT approach. Introduced earlier this year, the IMPACT approach identifies the most important issues currently facing the accountancy profession, private & public organizations, and global financial markets & economies, and provides a framework for the profession to be able to work together to help drive constructive change. The IMPACT approach is a guide for where the accountancy profession should be headed, and a tool for increased collaboration and cohesion within the profession.

To strengthen global economies, societies, and the environment, and to continue to address challenges resulting from the COVID-19 pandemic, IFAC calls on G20 leaders to:

1. Make Sustainability a Reality, Not Just a Goal

• Support the IFRS Sustainability Disclosure Standards
• Implement policies for an inclusive transition
• Balance climate with broader ESG and reporting
• Recognize the role of professional accountants in developing decision-useful sustainability information

2. Support Public Financial Management and Fight Corruption

• Support professionalization in the public sector and adoption of IPSAS
• Implement crucial multilateral commitments against corruption and related issues
• Look to the global accountancy profession as central partners

3. Work Together for Collective Prosperity

• Minimize regulatory fragmentation to drive economic growth
• Understand the importance of global public health and its interplay with PFM
• Resolve global conflicts and focus on long-term issues

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board (IPSASB), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world, has issued a new Exposure Draft (ED) proposing additional guidance on how two previously published Recommended Practice Guidelines (RPGs) can be applied now by governments and public sector entities to report on sustainability program information. This is ahead of any decision on the potential development of a sustainability reporting framework for the public sector.

Released today for public comment, ED 83, Reporting Sustainability Program Information —RPGs 1 and 3: Additional Non-Authoritative Guidance aims to demonstrate how RPG 1, Reporting on the Long-Term Sustainability of an Entity’s Finances and RPG 3, Reporting Service Performance Information can be immediately applied to report on sustainability program information. Additional Implementation Guidance is proposed, along with Illustrative Examples on such key topics as green bonds, carbon taxes, tax expenditures, and other programs developed to mitigate the effects of climate change and achieve the UN’s Sustainable Development Goals. The proposed guidance is intended to support implementation of the key areas highlighted in the recent OECD paper Green budgeting: A way forward. Like IPSAS, RPGs are intended to enhance the quality and transparency of public sector financial reporting by providing better information for public sector financial management and decision making. The IPSASB encourages public sector entities to follow RPGs when preparing their broader general purpose financial reports. 

Concurrently with the release of this ED, the IPSASB is considering the responses it received to its recent Consultation Paper, Advancing Public Sector Sustainability Reporting. It will decide whether and how to move forward in this area at its December 2022 meeting.

“Strong governance, good strategic and risk management, and accountability for the use of public sector resources are essential if governments are to play their parts in addressing climate change and sustainability more broadly,” said IPSASB Chair Ian Carruthers. “As we explore the potential development of a public sector sustainability framework, we urge governments and jurisdictions in the interim to look to the strong foundations for reporting on programs addressing both climate change and the SDGs that the IPSASB has already provided in its RPGs. This is now more explicitly addressed through the proposed additional guidance in this ED.”

Comments on ED 83 are requested by January 16, 2023, and will be reviewed and discussed by the IPSASB and will help shape the final Implementation Guidance and Illustrative Examples added to the existing RPGs.

Access the ED and its related At-a-Glance summary.

About the IPSASB

The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee

The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

Today, the International Federation of Accountants (IFAC) released the first installment in a three-part publication series to help small- and medium-sized practices implement the International Auditing and Assurance Standards Board’s (IAASB) new quality management standards. The IAASB’s suite of quality management standards were issued in December 2020 and come into effect on December 15, 2022.

Installment One: It is time to get ready for the new quality management standards addresses the mindset change the new standards require and the shift in focus from quality control to quality management. It also includes developing a project implementation plan, an introduction to quality objectives, the risk assessment process, and assigning roles and responsibilities. Helpful meeting agenda templates practitioners can use with their colleagues are also included.

The three-part series will provide tips and guidance for practical implementation of the IAASB’s standards. Installment two will focus on developing a detailed implementation plan and installment three will address monitoring and remediation. Installment One joins IFAC’s collection of available resources that support quality management implementation, including webinars, articles and videos, as well as the IAASB first-time implementation guides, all of which are available at ifac.org/qualitymanagement.

IFAC acknowledges and appreciates feedback from IFAC’s Small and Medium Practices Advisory Group and Forum of Firms representatives in the development of the series.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

Today, the International Auditing and Assurance Standards Board (IAASB) opened the public consultation for proposed changes to one of its fundamental standards, International Standard on Auditing (ISA) 500, Audit Evidence. The current ISA 500 addresses an auditor’s responsibility to design and perform audit procedures to obtain sufficient appropriate evidence to draw reasonable conclusions on which to base the auditor’s opinion.

The proposed changes:

• Clarify ISA 500’s purpose and scope and explain its relationship with other standards;
• Provide a principles-based approach to considering and making judgments about information intended to be used as audit evidence and evaluating whether sufficient appropriate audit evidence has been obtained;
• Modernize ISA 500 to be adaptable to the current business and audit environment, while considering scalability for different circumstances, including the entity and the auditor’s use of technology, such as automated tools and techniques; and
• Emphasize the role of professional skepticism when making judgments about information intended to be used as audit evidence and evaluating the audit evidence obtained.

Proposed International Standard on Auditing 500 (Revised), Audit Evidence, provides a “reference framework” for auditors when making judgments about audit evidence throughout the audit.

“The audit and the environment in which an auditor conducts the audit and assess audit evidence has evolved significantly in recent years,” commented IAASB Chair Tom Seidenstein. “For example, the changing nature and sources of information used by the auditor and the increasing role played by technology demanded a re-examination of the audit standard. These proposed changes will ensure that the standard keeps pace, while retaining a principles-based approach to standard setting.”

The IAASB invites all stakeholders to comment on the Exposure Draft via the IAASB website. Comments are requested by April 24, 2023.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

The International Public Sector Accounting Standards Board (IPSASB), developer of IPSAS®, international accrual-based accounting standards for the public sector, announced its new 2023 board members at its recent meeting in Portugal. The 2023 board will be a diverse, woman-majority group with members from around the world.

The new appointees to the IPSASB have been selected following a rigorous nominations and interview process involving the IFAC Nominating Committee and IPSASB leadership, overseen by the Public Interest Committee. The IFAC Board approved the recommended candidates.

The new Board members are:

• Mrs. Nor Yati Ahmad (Malaysia),
• Mr. Andrew van der Burgh (South Africa), and
• Mr. Jona Wala (Kenya).

The re-appointed Board members are:

• Dr. Kamira Muriel Sanchez Nicosia (Panama),
• Mr. Scott Showalter (USA), and
• Mrs. Patricia Siqueira Varela (Brazil).

“For the second year, the IPSASB will be a board comprising a majority of women for 2023,” said IPSASB Chair Ian Carruthers. “Diversity of Board membership is essential to ensure the delivery of high-quality standards that can strengthen public financial management globally. The appointment of new members from Africa and Asia will also be important to ensuring that our outputs meet the needs of an increasingly diverse group of users.”

The IPSASB also announced that Mr. Scott Showalter (USA) will assume the IPSASB Deputy Chair position for 2023. “I am extremely pleased that Scott has agreed to serve as my deputy. Scott brings a powerful combination of experience having served on the board since 2020 in addition to his experience as the former chair of Federal Accounting Standards Advisory Board where he completed his 10-year term in June 2019,” said Mr. Carruthers. “I also want to take this opportunity to thank outgoing members Lindy Bodewig, the current Deputy Chair, Christopher Nyong, and Ajith Ratnayake for their many important contributions to our work during their time with the Board. We are extremely grateful for their dedication and commitment.”

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

IFAC and A4S hosted their Climate Week NYC event Finance Leaders Plugging the Net-Zero Information Gap: Exploring the critical role of CFOs and finance teams in the climate transition two weeks ago. The event brought together finance and accounting leaders to better understand how they're enabling their organization’s decarbonization strategies and transition planning and what obstacles they’re facing.

A recording of the event and takeaways are now available. 

“The task to decarbonizeeconomies is no mean feat,” said Kevin Dancey, IFAC CEO. “The quality of sustainability-related data and reporting processes must be improved to meet the demands of investors, regulators, and policy makers and the urgency of the climate crisis itself. Leveraging the skills of professional accountants to identify risks and opportunities and enhance climate-related information is an essential starting point.” 

Watch the recording and read the takeaways now. 

Last Friday marked the official start of significant accountancy capacity building programs in Ghana and Burkina Faso led by the International Federation of Accountants (IFAC), Gavi, the Vaccine Alliance, and the Global Fund to Fight AIDS, Tuberculosis and Malaria. The programs will develop the capacity of the accountancy profession in Ghana and Burkina Faso by supporting the Institute of Chartered Accountants of Ghana and the Ordre National des Experts Comptables et des Comptables Agréés du Burkina Faso. IFAC has partnered with the Pan African Federation of Accountants (PAFA), which will play the role of the program and project manager for implementing the pilot projects in both countries.

By focusing on strengthening the accountancy profession’s infrastructure, these pilot projects will support robust accounting practices in the public health sector, improve overall financial management of donor funds, and provide long-term benefits to the economy and society in Ghana and Burkina Faso.

“Developing the global accountancy profession’s capacity has many benefits across local, regional and national economies and societies—none more important the sound public financial management and oversight of public health funds,” said Scott Hanson, Director of Policy & Global Engagement at IFAC. “The projects launched on Friday—created through local and global partnerships—will empower resilient public health sector systems, and high-quality information the governments and people of Ghana and Burkina Faso can use to make data-informed decisions. They will help build national accountancy professions that can fully support the needs of Ghana and Burkina Faso. We look forward to expanding these programs with the support of Gavi, the Global Fund, and now USAID.”

“The Global Fund is a major contributor toward the achievement of the health-related Sustainable Development Goal 3 and is acutely aware that a resilient and sustainable system for health (including a robust public financial management) underpin the realization of the SDG-3 goals and will continue to leverage the collective strength of our partnership to build the capacity and the capabilities of professional accountancy organizations”, said Alexander Birikorang, Head of Grant Financial Management at the Global Fund.

“Sound financial management is key to ensuring Gavi’s programs are able to improve the lives of as many people as possible,” said Assietou Diouf, Managing Director, Finance & Operations at Gavi, the Vaccine Alliance. “These pilot projects in Ghana and Burkina Faso are intended to boost transparency and build local skills and capacity at the local level. However, beyond that, we also expect them to contribute to a framework for better accounting practices that could one day benefit all Gavi-supported countries.”

Friday’s formal launch event brought together key stakeholders from both countries, including the Controller and Accountant General of the Republic of Ghana and representatives from Burkina Faso, including the Ambassador of Burkina Faso. The event followed two weeks of intensive meetings in Accra and Ouagadougou to coordinate broad support and ensure success.

The launch event also included an opportunity for the IFAC, the local accountancy organizations, and donor agencies to meet, including USAID, which recently joined the efforts to build capacity and support in-country financial management. The discussions considered next steps for the projects in Ghana and Burkina Faso and the future of the partnership.

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About the Global Fund
The Global Fund is a worldwide partnership to defeat HIV, TB and malaria and ensure a healthier, safer, more equitable future for all. We raise and invest more than US$4 billion a year to fight the deadliest infectious diseases, challenge the injustice which fuels them and strengthen health systems in more than 100 of the hardest hit countries. Since the beginning of the COVID-19 pandemic, we have invested an additional US$4.3 billion to fight the new pandemic and reinforce systems for health. We unite world leaders, communities, civil society, health workers and the private sector to find solutions that have the most impact, and we take them to scale worldwide. Since 2002, the Global Fund partnership has saved 50 million lives.

About Gavi, the Vaccine Alliance
Gavi, the Vaccine Alliance is a public-private partnership that helps vaccinate half the world’s children against some of the world’s deadliest diseases. Since its inception in 2000, Gavi has helped to immunise a whole generation – over 981 million children – and prevented more than 15 million future deaths, helping to halve child mortality in 73 lower-income countries. Gavi also plays a key role in improving global health security by supporting health systems as well as funding global stockpiles for Ebola, cholera, meningococcal and yellow fever vaccines. After two decades of progress, Gavi is now focused on protecting the next generation, above all the zero-dose children who have not received even a single vaccine shot. The Vaccine Alliance employs innovative finance and the latest technology – from drones to biometrics – to save millions more lives, prevent outbreaks before they can spread and help countries on the road to self-sufficiency. Learn more at www.gavi.org and connect with us on Facebook and Twitter.

Gavi is a co-convener of COVAX, the vaccines pillar of the Access to COVID-19 Tools (ACT) Accelerator, together with the Coalition for Epidemic Preparedness Innovations (CEPI), the World Health Organization (WHO) and UNICEF. In its role, Gavi is focused on procurement and delivery for COVAX: coordinating the design, implementation and administration of the COVAX Facility and the Gavi COVAX AMC and working with its Alliance partners, UNICEF and WHO, along with governments, on country readiness and delivery.

The Vaccine Alliance brings together developing country and donor governments, the World Health Organization, UNICEF, the World Bank, the vaccine industry, technical agencies, civil society, the Bill & Melinda Gates Foundation and other private sector partners. View the full list of donor governments and other leading organisations that fund Gavi’s work here.

The International Public Sector Accounting Standards Board (IPSASB), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world, received strong overall engagement and feedback from stakeholders globally on the proposals in its recent Consultation Paper (CP), Advancing Public Sector Sustainability Reporting. The IPSASB launched its global consultation on developing a sustainability reporting framework for the public sector in May 2022 in response to stakeholder encouragement, including from the World Bank, and the consultation closed September 9, 2022.

The CP identified the drivers for public sector sustainability reporting as:

• Global public interest;
• Major economic, environmental, social and governance impacts; and
• Capital markets significance.

A motivating factor behind the IPSASB’s launch of the CP was that global public sector specific sustainability reporting guidance is needed because of challenges in applying private sector guidance for public sector reporting given the differences in focus. With its many years of experience working with other global standard setters, including the International Accounting Standards Board to maximize alignment with its public sector guidance, the IPSASB therefore proposed in the CP that its experiences, processes and relationships would enable it to develop the necessary guidance efficiently and effectively.

An overview of the feedback received over the course of the open consultation, collected through the IPSASB’s regional roundtables and from written submissions, was presented at the IPSASB’s Public Sector Standard Setters Forum this week hosted by the Order of Certified Accountants (OCC) in Cascais, Portugal, attended by more than 100 delegates from 36 jurisdictions. In addition to supporting the main proposals, the feedback strongly encouraged collaboration between IPSASB and other international standard setters, particularly the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI), in using its current processes to ensure that new guidance addresses public sector needs while maximizing consistency with sustainability frameworks globally.

IFRS Foundation Executive Director, Mr. Lee White, and GRI Chief Standards Officer, Mr. Bastian Buck, addressed the Forum, and both expressed a willingness by their organizations to collaborate with the IPSASB if it decides to take forward its public sector sustainability reporting initiative.

The IPSASB will continue to analyze the written submissions in detail, and to progress discussions with key stakeholders, including potential funders, in order to decide at its December 2022 meeting on whether to proceed in 2023 with the development of public sector sustainability reporting guidance.

Taxpayers’ attitudes about paying taxes correlate closely with perceived levels of corruption, according to a major new study, Public Trust in Tax, by accountancy bodies ACCA and the International Federation of Accountants (IFAC). A survey of 5,900 people across 14 countries – many in developing economies – found that trust in tax systems is lower when taxpayers perceive higher levels of corruption and diversion of public funds.

Helen Brand, chief executive ACCA, says: ‘Fighting corruption is such a central priority for the global accountancy profession because corruption has such negative implications for trust, tax morale and sustainable development more broadly. We know from research by the IMF that economic growth goes hand in hand with a consistent stream of tax revenues.’

This year’s survey builds on previous research, and for the first time includes data from developing countries outside of the G20. With the UN predicting that the highest population growth up to 2050 is set to happen in non-G20 countries, this edition of Public Trust in Tax looks at issues impacting an increasing share of the global population. The survey was backed up by a series of roundtables to explore attitudes further.

Kevin Dancey, chief executive IFAC, says: ‘The relationship between taxpayers and governments, and between businesses, society and tax systems is fundamental to the sustainability – and survival – of the economies that support us all, in both the short and long term. Our Trust in Tax surveys provide crucial insight into these relationships and can help global policymakers as they consider the best way forward.’

IFAC recently released its Action Plan for Fighting Corruption and Economic Crime, with broad support from the global accountancy profession. The plan outlines specific actions that members of the profession can take, individually and in concert, to engage in a meaningful way in the fight against corruption. ‘Given the correlation between perceived levels of corruption and citizens’ willingness to pay taxes, this plan is an important effort to help ensure that citizens see the benefits of their tax dollars,’ said Mr. Dancey.

Key results
The survey key findings are set out below:

Trust and corruption
Politicians are widely distrusted with a net trust deficit of -25%. In contrast professional tax accountants and lawyers are trusted (67.1% and 64.6% respectively). Attitudes to tax authorities are split with a significant minority – 27.9% – distrusting or highly distrusting them.

Roundtable participants saw lack of trust in politicians as a major barrier to tax engagement with the systems. Citizens don’t object to paying tax - they object to misappropriation.

Tax minimisation
In the survey 46.4% agreed that multinationals were paying a reasonable amount of tax. This contrasts with Public Trust in Tax surveys in G20 countries showing only 22.4% agreed.

Attitudes towards tax minimisation are more relaxed in developing countries with respondents more likely to agree that specific taxpayer groups were paying a reasonable amount of tax.

Incentives
People strongly support the use of tax incentives to target megatrends such as climate change (73.8%) and ageing population (72.8%).

Tax incentives were seen as way of attracting multinational businesses to invest (73.9%) and build a more coherent international tax system through co-operation between countries (69.3%)

Author of the report Jason Piper says: ‘An efficient, effective and trusted tax administration is one building block in the sound structure of society. This survey shows that the problem lies not with the collecting of tax but what happens afterward. A lack of accountability in government spending fosters the perception – and all too often the reality – of corruption in government.’

Since 2017 ACCA and IFAC have been gathering data across the G20 on attitudes and opinions of the general public. The latest survey is the first to look beyond the G20 and comes at a crucial time for economies across the globe, given uncertainty following Russia’s invasion of Ukraine and the Covid-19 pandemic.

Read Public Trust in Tax: Global Perspectives 2022 

For media enquiries, contact:
ACCA News Room
E: newsroom@accaglobal.com
Twitter: @ACCANews
accaglobal.com

IFAC
Jennifer DiClerico
Director, Head of Communications
E: jenniferdiclerico@ifac.org
Twitter: @IFAC
ifac.org

About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants.

We’re a thriving global community of 240,000 members and 541,000 future members based in 178 countries and regions, who work across a wide range of sectors and industries. We uphold the highest professional and ethical values.

We offer everyone everywhere the opportunity to experience a rewarding career in accountancy, finance and management. Our qualifications and learning opportunities develop strategic business leaders, forward-thinking professionals with the financial, business and digital expertise essential for the creation of sustainable organisations and flourishing societies.

Since 1904, being a force for public good has been embedded in our purpose. In December 2020, we made commitments to the UN Sustainable Development Goals which we are measuring and will report on in our annual integrated report.

We believe that accountancy is a cornerstone profession of society and is vital helping economies, organisations and individuals to grow and prosper. It does this by creating robust trusted financial and business management, combating corruption, ensuring organisations are managed ethically, driving sustainability, and providing rewarding career opportunities.

And through our cutting-edge research, we lead the profession by answering today’s questions and preparing for the future. We’re a not-for-profit organisation. Find out more at accaglobal.com

About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) welcome today's announcement from the International Organization of Securities Commissions (IOSCO) of its support and encouragement for the IAASB’s and IESBA’s work on developing standards relating to assurance of sustainability-related information. The IAASB and IESBA acknowledge that stakeholders areincreasingly seeking assurance of sustainability-related information and that it is important to respond to market demands with robust standards applicable to all sustainability assurance providers.

IAASB Chair Tom Seidenstein said: “There is a clear need for ongoing dialogue and collaboration to ensure sustainability reporting, assurance, and regulation develop in a cohesive manner to provide decision-useful information to stakeholders. We are pleased to have IOSCO’s support for our ongoing work to enhance sustainability assurance standards and look forward to continuing our strong, fruitful relationship with IOSCO and others.”

IESBA Chair Gabriela Figueiredo Dias said: “Ethics standards, including independence requirements, are foundational to public trust in the assurance of sustainability-related information. It is crucial and in the public interest that all assurance providers, whether or not they are from the accountancy profession, adhere to the same high bar of ethical behavior and independence when engaged in such assurance work. We have given high priority to bringing to market fit-for-purpose ethics and independence standards in this area and look forward to close coordination with IOSCO and IAASB on this journey.”

The IAASB meets this week to continue discussions and vote on its sustainability assurance project proposal to develop an overarching standard for assurance engagements on sustainability. The standard will provide a global baseline for all professional assurance providers providing assurance on any sustainability information being reported, if the preconditions necessary for effective assurance are met.

The IESBA meets this week to consider possible approaches to standard setting in relation to sustainability assurance and sustainability reporting, recognizing that professional accountants in business play a “first line of defense” role in preparing and presenting trustworthy sustainability information. The IESBA will also consider the applicability of its standards to assurance providers outside of the accountancy profession. The IESBA anticipates approving a project plan by December 2022.

The IAASB and IESBA will continue to closely collaborate with IOSCO and other regulatory and standard-setting bodies to inform the development of robust standards that foster independent, high-quality engagements and globally consistent practices.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).