International Ethics Standards Board for Accountants

Pronouncements

The International Ethics Standards Board for Accountants (IESBA) develops its pronouncements following a rigorous due process that includes input from the general public, IFAC member bodies and their members, and the IESBA Consultative Advisory Group. To access electronic copies of IESBA pronouncements free-of-charge, go to the IFAC online bookstore. Matters relating to copyright and translation are addressed in the relevant IFAC policy statements.

• The Code of Ethics for Professional Accountants

  The Code establishes ethical requirements for professional accountants and provides a conceptual framework for all professional accountants to ensure compliance with the five fundamental principles of professional ethics. These principles are integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. Under the framework, all professional accountants are required to identify threats to these fundamental principles and, if there are threats, apply safeguards to ensure that the principles are not compromised.

  The Code applies to all professional accountants, those in public practice, industry, commerce, the public sector and education.

• Interpretations of the Code of Ethics

  Interpretations are issued by the IESBA when particular questions are raised that have broad implications. The interpretations are authoritative.

  Individuals in countries that have adopted the Code should first raise their questions with their member body or with the Forum of Firms when the inquiry has broad global applications. The member body or Forum will then bring the issue to the attention of the IESBA. Recent interpretations are listed below:

  • Interpretation 2005-01 of the Code of Ethics - This interpretation provides guidance on the application of the independence requirements contained in Section 290 to assurance engagements that are not financial statement audit engagements.

The Code of Ethics for Professional Accountants establishes ethical requirements for professional accountants. A member body of IFAC or firm may not apply less stringent standards than those stated in this Code. However, if a member body or firm is prohibited from complying with certain parts of this Code by law or regulation, they should comply with all other parts of the Code.