The International Auditing and Assurance Standards Board (IAASB) is pleased to share its 2022-2023 Public Report, Balancing Effectiveness and Timeliness in Audit and Assurance Standard Setting. This report offers a comprehensive overview of the IAASB’s progress in addressing key public interest issues and reiterates its strategic direction to continue bolstering confidence in audits and assurance engagements.

“This report reflects the IAASB's strategic objectives over the past four years, focusing on tackling the most pressing public interest issues, improving the timeliness of standard setting, and strengthening connections with stakeholders,” said IAASB Chair Tom Seidenstein. “We are privileged to serve our mandate to enhance trust in external reporting and the effective functioning of the global economy. The IAASB will continue its work with determination and a sense of humility.”

Key Highlights

• Global Adoption of IAASB Standards: Approximately 130 jurisdictions worldwide have adopted or committed to adopting the International Standards on Auditing (ISAs). This widespread adoption underscores the authority, credibility, and global recognition of these standards as high-quality and reliable.
• Project Timelines and Milestones: The report provides detailed timelines and key milestones for the development, approval, and implementation support for various standards. It illustrates the IAASB's commitment to delivering timely and relevant standards that meet the needs of the global audit and assurance community.
• Transition to the Next Strategic Phase: The IAASB has developed a new strategy for the next four years. The strategy emphasizes key areas such as fraud, going concern, and emerging topics like the use of technology in audits. The strategy also includes completing the in-progress International Standard on Sustainability Assurance (ISSA 5000) and supporting its implementation. ISSA 5000 is expected to play a central role in the global reporting ecosystem, with a number of jurisdictions already signaling their intent to adopt the standard.
• Advancements in Organizational Structure: In 2023, the International Foundation for Ethics and Audit (IFEA) was established to house the IAASB and the International Ethics Standards Board for Accountants as part of the Monitoring Group recommendations on strengthening the international audit and ethics standard-setting system. This new structure supports enhanced coordination between the two boards and strengthened independence.
• Outreach and Collaboration: The IAASB demonstrated its commitment to rigorous international outreach by conducting more than 500 outreach activities globally in 2022-2023 with global, regional, and jurisdictional regulators, oversight bodies, and practitioners, among others.

The IAASB remains committed to its mission to enhance trust in external reporting and ensure the effective functioning of the global economy. The coming years will see the IAASB continue to build on its successes, addressing the evolving needs of the global audit and assurance community.

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.

The Staff of the International Ethics Standards Board for Accountants (IESBA) today released an update to its Questions and Answers (Q&As) publication, originally published in March 2023, on the IESBA revisions to the definitions of listed entity and public interest entity (PIE) in the IESBA Code of Ethics.

This update includes a new Q&A (16) to address the scenario where a jurisdiction has no PIE definition or excluded one or more of the mandatory categories in the IESBA PIE definition. In addition, Q&A 20 has been updated following the finalization of Track 1 of IAASB’s PIE project and the IAASB’s agreement to update ISA 700 (Revised) so that the auditor’s report can be used as a mechanism for firms to comply with the transparency requirement set out in the IESBA PIE revisions.

The IESBA and the IAASB coordinated closely throughout the development of the IESBA’s revised PIE definition and Track 1 of the IAASB’s PIE project. This high level of coordination has been ongoing as the IAASB works towards finalizing Track 2 of its PIE project. Such coordination is critical to ensure the interoperability of both Boards’ standards.

The Q&A publication is designed to highlight, illustrate or explain aspects of the PIE revisions in the Code and is intended to complement the Basis for Conclusions for the final pronouncement. It aims to assist national standards setters, professional accountancy organizations, and firms in adopting and/or implementing the PIE revisions.

The PIE revisions are effective for audits of financial statements for periods beginning on or after December 15, 2024. Read the revisions here.

Note: References to paragraph numbers in the updated Q&A publication were updated to reflect the 2024 version of the IESBA Code.

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, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. 

The International Ethics Standards Board for Accountants (IESBA) today released the 2024 Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards). This handbook replaces the 2023 edition and incorporates the following:

• The revisions relating to the definition of a public interest entity which, among other matters, specifies a broader list of mandatory public interest entity categories, including a new category “publicly traded entity” to replace the category of “listed entity.”
  • The revised public interest entity definition and related provisions will be effective for audits of financial statements for periods beginning on or after December 15, 2024.
• Changes to the definitions of “audit client” and “group audit client” in the Glossary arising from the approved revisions to the definitions of listed entity and public interest entity.
  • The revised definitions will be effective for audits of financial statements and group financial statements for periods beginning on or after December 15, 2024.
• Technology-related provisions of the Code.
  • The technology-related revisions to Parts 1 to 3 will be effective as of December 15, 2024.
  • The technology-related revisions to Part 4A will be effective for audits and reviews of financial statements for periods beginning on or after December 15, 2024.

The back of the 2024 Handbook contains the IESBA-approved revisions to the Code addressing Tax Planning and Related Services, which will become effective after June 2025.

Click here to learn more about the IESBA Code.

Reproducing and Translating the IESBA Handbook
To help adoption and implementation of the IESBA standards, stakeholders are invited to submit requests for permission to reproduce or translate the IESBA Handbook online via the Online Permissions Requests or Inquiries system on the IFAC website.

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, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. 

The International Public Sector Accounting Standards Board (IPSASB) has released Exposure Draft (ED) 91, Limited-scope Updates to First-time Adoption of Accrual Basis International Public Sector Accounting Standards (IPSAS) (Amendments to IPSAS 33) for public comment. 

“The IPSASB encourages public-sector entities and jurisdictions around the world to apply the accrual basis of accounting through the adoption and implementation of accrual basis IPSAS. The successful application of IPSAS 33 is often a cornerstone of IPSAS adoption and implementation” said IPSASB Chair Ian Carruthers. “This ED aims to clarify the requirements of IPSAS 33 to assist entities and jurisdictions in successfully completing their IPSAS transition journey.” 

IPSAS 33, First-time Adoption of Accrual Basis International Public Sector Accounting Standards (IPSAS), was issued in 2015 and has been applied by a number of public sector entities during their transition to accrual basis IPSAS. The IPSASB heard from these stakeholders that: 

• IPSAS 33 should be more user-friendly when applied as part of the entity’s broader transition journey; 
• Reliefs should be more clearly set in the entire transition process to accrual basis IPSAS; and 
• Reliefs should be designed to encourage the recognition and measurement of items, contributing to compliance as early as possible. 

The proposals in the Limited Scope Update Project do not propose to change the objective, scope, or available exemptions in IPSAS 33. Rather, the amendments to IPSAS 33 are aimed to make it easier to apply and to encourage first-time adopters to comply with IPSAS in a planned way as soon as possible. Feedback received to this ED will help shape the final amendments to IPSAS 33. 

How to Comment 
Access the ED, supplementary material, and the summary At-a-Glance documents, or to submit a comment. Comments on the ED are requested by December 13, 2024. The IPSASB encourages IFAC® members, associates, and regional accountancy organizations to promote the availability of these ED to their members and employees. 

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, the government of Canada, and The World Bank. 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.  

With 12 of the world’s 20 fastest-growing economies and an economic landscape characterized by rapid urbanization, a young demographic, and abundant natural resources, Africa’s development is vital in a regional and global context.

Achieving the continent's growth and sustainable development ambitions requires the active contribution of accountancy and finance professionals, as highlighted in The Accountancy Profession Enabling Africa’s Transformation, a new report from the International Federation of Accountants (IFAC) and the Pan African Federation of Accountants (PAFA).

Launched yesterday at PAFA’s General Meeting, the report outlines how influential accountants on company boards, and as CFOs and trusted business advisers are to drive sustainable economic growth in Africa and navigate its challenges including energy access, a lack of regional integration, rising public debt, as well as climate change adaptation and mitigation estimated to cost between USD 68 and 108 billion annually.

The report was informed by a panel of experts at IFAC’s Professional Accountants in Business Advisory Group meeting in South Africa moderated by the PAIB Advisory Group Chair Sanjay Rughani, and including the Brookings Institution, The African Development Bank (AfDB), The World Bank, TradeMark Africa, Amundi Asset Management, Standard Chartered Bank, Nedbank, and Investec Bank. The panel also included Josephine Okui Ossiya who provided CFO lessons from the Bujagali hydroelectric power station.

“We believe the accountancy profession has a critical role in achieving transformation in Africa and empowering change,” said IFAC Chief Executive Officer Lee White. “We value our partnership with PAFA to support regional efforts towards addressing Africa’s priorities to enable sustainable growth and build capital market efficiency and transparency.”

“By strengthening the capacity and influence of the accountancy profession in Africa, we enable our 56 member organizations in 45 countries to help drive sustainable growth and prosperity by enhancing trade and regional integration, investment, the quality of services and trust in institutions,” said PAFA Chief Executive Officer Alta Prinsloo. "This report highlights the key areas in which the accountancy profession can influence transformation to achieve a just and sustainable transition for Africa.”

Learn more about what accounting and finance professionals can do to enable Africa’s sustainable transition. The report is available in English and French.

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 more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

About PAFA

The International Ethics Standards Board for Accountants (IESBA) today released its 2023 Annual Report, Respecting the Past, Planning for the Future.

This interactive review of 2023 features comprehensive accounts of the Board’s projects and insights from its leaders, illustrating a period of significant achievement. The achievements include the approval and subsequent launches of the Exposure Draft on International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and ethics standards for sustainability reporting and the final Ethics Standards for Tax Planning and Related Services.

2023 also saw the board approve an Exposure Draft on Using the Work of an External Expert and the IESBA’s Strategy and Work Plan for 2024-2027, all aimed at strengthening the IESBA’s International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

"2023 has been a transformative year for the IESBA, marked by our continued commitment to strengthening global ethics standards and putting ethics at the heart of corporate decision-making," said IESBA Chair Gabriela Figueiredo Dias. "Our efforts in areas such as sustainability reporting and assurance and tax planning are prime examples of how we are addressing the evolving challenges and opportunities to enhance public trust and integrity in corporate reporting and in the work of professional accountants and assurance providers."

The 2023 IESBA Report also includes an interactive map showcasing the 140+ countries where the IESBA Code is in use and an overview of the Board’s extensive stakeholder outreach efforts and initiatives to promote global adoption and effective implementation of the Code.

Throughout 2023, the IESBA has responded vigorously to the challenges of ethics in the accountancy profession and beyond. The 2024 agenda will focus on final approvals of sustainability-related standards, new workstreams addressing accountancy firm culture and governance, and independence considerations for audits of collective investment vehicles, pension fund arrangements, and investment company complexes.

The full report can be accessed here.

About IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting high-quality ethics standards, including independence requirements, 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.

International Accountancy Profession Commits to Empower Sustainability Transformation

ATHENS, Greece -- The International Federation of Accountants (IFAC) congratulates the IFRS Foundation and the ISSB on their announcement today that more than twenty jurisdictions, representing over half the global economy by GDP, have already decided to use, or are taking steps to introduce, ISSB Standards in their legal or regulatory frameworks.

IFAC also welcomes the IFRS Foundation’s Inaugural Jurisdictional Guide for the adoption or other use of ISSB Standards (the Guide), which was developed to help jurisdictions design and plan their journeys to the adoption or other use of ISSB Standards.

IFAC Chief Executive Officer Lee White, speaking from the 49^th IOSCO Annual Meeting in Athens, said, “IFAC was an early advocate for a harmonized, global system for the disclosure of sustainability-related information, and we continue to actively support and contribute to coordinated efforts to develop and deliver such a system. Today’s announcement by the IFRS Foundation confirms strong global momentum for the ISSB Standards and is particularly powerful given it comes less than a year after IOSCO’s endorsement of ISSB Standards IFRS S1 and IFRS S2. I wish to recognize the leadership of the IFRS Foundation and ISSB on the milestone they’ve achieved.”

IFAC is a collaborating partner with the IFRS Foundation on its Regulatory Implementation Programme, a component of the Guide, which includes the development of tools, educational materials and other initiatives to advance capacity building in support of ISSB Standards.

As part of the global ecosystem working to support consistent and comparable sustainability-related information, IFAC also recently convened leaders from across the Asia-Pacific region and Latin America in two separate events held in Singapore and Bogota, Colombia, respectively. The objective of these assemblies was to discuss and advance the transformation occurring both within businesses and the accountancy profession related to sustainability disclosure. A program of regional assemblies through to 2026, including one in the Middle East later this year, is currently being finalized.

IFAC’s work over the last several years to benchmark the  State of Play: Sustainability Disclosure and Assurance provides key data on global developments and a roadmap for the future. 

Mr. White said, “The global business community has commenced its sustainability reporting and assurance journey, and the global accountancy profession -- which is undertaking critical roles using the ISSB Standards, the IAASB’s forthcoming International Standard on Sustainability Assurance, and the IESBA’s proposed standards for ethical considerations in sustainability reporting and assurance -- is central to the transformation of sustainability reporting, and to empowering this change.”

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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 more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants (IFAC) has unveiled proposed changes to the International Education Standards (IESs) that embed sustainability—from analysis to reporting to assurance—across aspiring professional accountants’ training.

IFAC CEO Lee White emphasized the significance of the proposed changes, stating, “Investors and other stakeholders need sustainability reports and disclosures that are on par with the high-quality, decision-useful financial reports that accountants already deliver. To be future-fit, accountants must develop the right competencies to meet this need. The proposals provide a robust framework for the profession to develop capable accountants who produce, report, and assure sustainability information.”

Key proposals include:

• Emphasizing working with experts and in multi-disciplinary teams;
• Introducing key sustainability reporting concepts, such as systems thinking, value chains and scenario analysis;
• Referencing relevant sustainability reporting and assurance standards; and
• Creating a new assurance competence area and learning outcomes.

Additionally, IFAC has proposed changes to IES 6, Initial Professional Development – Assessment of Professional Competence, to modernize the standard to align with current good practice and clarify previously-existing requirements. This includes introducing new principles emphasizing integrity, authenticity, equity, and inclusion. These changes will aid professional accountancy organizations, universities, and training programs in evaluating candidates’ readiness for the professional accountant role.

To help its stakeholders and the accountancy profession understand the proposed changes related to sustainability, IFAC will hold global webinars on May 21. Visit the IFAC website for additional details and to register.

IFAC encourages all stakeholders to provide feedback on both set of proposed changes by July 24, 2024, using the Response Templates available on the IFAC website.

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 more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

New standards will strengthen the ethical framework that guides professional accountants providing tax planning services; other providers strongly encouraged to follow the standards

Comprehensive framework includes a new requirement and guidance on due consideration of reputational, commercial, and wider economic consequences in their tax advice

Aims to restore public trust on a core topic to the social contract between corporations and the market which supports them

The International Ethics Standards Board for Accountants (“IESBA”) today announced the launch of the first comprehensive suite of global standards on ethical considerations in tax planning and related services, incorporated in the IESBA Code of Ethics.

Following certification by the Public Interest Oversight Board (PIOB), the standards establish a clear framework of expected behaviors and ethics provisions for use by all professional accountants, and respond to public interest concerns about tax avoidance and the role played by consultants in light of revelations in recent years such as the Paradise and Pandora Papers. 

Moving away from a purely mechanical and legalistic approach, the goal of the standards is to provide a principles-based framework and a global ethical benchmark applicable to tax planning services and activities. This will establish a consistent point of reference for all professional accountants, as well as other tax professionals who are strongly encouraged to use the standards, when dealing with tax planning, to ensure due consideration of public interest as well as potential reputational, commercial, and wider economic consequences for their clients or employing organizations.

These standards are especially relevant in the context of rising public scrutiny of tax avoidance schemes which can harm companies’ credibility and corporate reputation, as well as risking litigation and harming the public interest. Responding to increased public interest concerns, the fundamental goal of these standards is to ensure an ethical, credible basis for advising on tax planning arrangements, thereby restoring public and institutional trust on a topic that is core to the social contract between corporations and the market which supports them.

Gabriela Figueiredo Dias, Chair of the IESBA commented: “Professional accountants have an important duty to their clients but must not lose sight of their fundamental duty to the public interest. As scandals in recent years have shown, though some behaviors may be legal under the letter of the law in certain jurisdictions, the ‘grey area’ of tax is not always the ethical way forward. These standards provide a robust framework to help professional accountants, as well as all other tax advisers whom we strongly encourage to adopt or use the standards, navigate the ethical decisions in this complex area that are central to trust in the entire system.”

Pascal Saint-Amans, former Director OECD Centre for Tax Policy and Administration, said: “I commend IESBA on the launch of the world’s first ethics standards on tax planning, which I’m sure will catalyze a much-needed change in mindset and behaviors.  As public scrutiny increases, tax avoidance becomes less tolerated. Ethics is a central tenet of good tax behavior and advice and IESBA’s work in this area not only generates important discussion on the topic, but also is central to restoring public trust more broadly.”

These new standards are aimed at complementing and further strengthening the relevance of the existing IESBA Code addressing Tax Planning and Related Services. The standards become effective July 1, 2025.

The approval of the new standards was preceded by extensive outreach and public consultation which took place during 2021-2023, including three global roundtables involving over 150 senior-level representatives from stakeholders from very different jurisdictions and backgrounds.

Final Pronouncement - Revisions to the Code Addressing Tax Planning and Related Services

Expansion of IESBA activity to address culture and governance at accounting firms

Exploration of increased scope and applicability of the IESBA Code to all individuals who perform the same activities as professional accountants

New workstream to address the evolving role of the CFO in protecting the integrity of financial and non-financial information.

The International Ethics Standards Board for Accountants (IESBA) today announced the publication of its Strategy and Work Plan for 2024-2027 (SWP), titled Towards a More Sustainable Future: Advancing the Centrality of Ethics. The SWP sets out the IESBA's vision and strategic goals and actions, underpinning its ambition to put the International Code of Ethics for Professional Accountants (including International Independence Standards) at the heart of business and organizations.

"Putting ethics at the center of every business judgment and decision is the surest way to earn, restore and strengthen public trust in all that an organization does. The external landscape continues to evolve, presenting new dynamics and challenges, but good ethical behavior acts as a constant amidst the uncertainty. It is about integrity, expected behaviors and mindset, and making the right decision,” said Gabriela Figueiredo Dias, IESBA Chair. “Our new strategic plan reflects the IESBA’s unwavering determination to face the external environment head-on, broaden the reach and scope of our work, and set the highest standards of ethical conduct for professional accountants and others who play a role, large or small, in the financial and non-financial information supply chain. That is how our work, vision and ambition support the proper functioning and sustainability of organizations, financial markets and economies worldwide in the public interest."

Within the SWP, the IESBA has identified two high-priority strategic areas of focus, namely:

• Accounting firm culture and governance, which seeks to identify potential actions the IESBA might take within or outside the Code to respond to the persistent high-profile cases of unethical behavior in accounting firms.
• Exploring the opportunity to extend the impact of the Code beyond the accountancy profession to a wider array of individuals who perform similar work as professional accountants, building on its current project to develop profession-agnostic ethics, including independence, standards for all sustainability assurance practitioners. Among other matters, this will include a new workstream to explore expanding the scope and applicability of the Code beyond professional accountants to all preparers of sustainability information.

Other key highlights of the SWP include:

• New initiatives to explore ethical considerations relating to the evolving role of CFOs and other senior professional accountants in business, and independence considerations relating to business relationships between firms and their audit clients.
• A commitment to conduct a series of post-implementation reviews for significant ethics, including independence, standards the IESBA issued in recent years.
• Ongoing monitoring of the rapidly changing landscape of technological transformations and their impact on the professional activities and services performed by professional accountants and others, with a view to determining the need for any further standard-setting or other actions the IESBA might take in the public interest.
• A commitment to close coordination with the IESBA’s sister Board, the International Auditing and Assurance Standards Board (IAASB), and to fostering collaborative relationships with other standard-setters to ensure standards interoperability.

The SWP represents the culmination of careful assessment of market developments and thoughtful consideration of stakeholder feedback from the IESBA’s extensive outreach and consultation activities over a two-year period.

In developing its SWP, the IESBA engaged closely with IAASB, which today also issued its Strategy and Work Plan 2024-2027, Advancing Public Trust and Strengthening Global Audit and Assurance.

About IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting high-quality ethics standards, including independence requirements, 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.