The International Ethics Standards Board for Accountants (IESBA) has issued a revision to the Code of Ethics for Professional Accountants in relation to the Offering and Accepting of inducements. The revision sets out a comprehensive framework that covers all forms of inducement and is applicable to both professional accountants in business and professional accountants in public practice in situations involving the offering or accepting of an inducement.
The revised standard:
- sets out clear expectations for all professional accountants to understand and comply with laws and regulations that prohibit the offering or accepting of inducements in certain circumstances, such as those related to bribery and corruption;
- requires the application of an intent test where inducements are not specifically prohibited by law or regulation, and the application of the conceptual framework in all other circumstances; and
- provides assistance to professional accountants in navigating the different situations.
Effective date: June 15, 2019