In an effort to continue to strengthen the accountancy profession, the International Ethics Standards Board for Accountants (IESBA) has released a new code of ethics for professional accountants which becomes effective in June 2019.
New Code highlights include:
- Revised “safeguards” provisions better aligned to threats to compliance with the fundamental principles;
- Stronger independence provisions regarding long association of personnel with audit clients;
- New and revised sections dedicated to professional accountants in business (PAIBs) relating to:
- preparing and presenting information; and
- pressure to breach the fundamental principles.
- Clear guidance for accountants in public practice that relevant PAIB provisions are applicable to them;
- New guidance to emphasize the importance of understanding facts and circumstances when exercising professional judgment; and
- New guidance to explain how compliance with the fundamental principles supports the exercise of professional skepticism in an audit or other assurance engagements.
The new code is accessible in the IESBA website wherein the IESBA will also post implementation resources and other supporting materials will be released throughout the period leading up to the effective date. PAFA will keep you updated on these resources as and when they become available.
We encourage to familiarise yourself and your members with this code as we believe that public trust in the profession can only be achieved through clearer, more usable and enforceable independence and ethics standards.
Please feel free to contact the PAFA secretariat should you require any further assistance or support with the adoption and implementation of this new code.