Regulatory updates

The International Ethics Standards Board for Accountants (IESBA) released the 2022 edition of the Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards).

This handbook replaces the 2021 edition and incorporates the following revisions that would become effective in December 2022:

• Revisions to the Non-Assurance Services (NAS) and fee-related provisions,
• Revisions to address the objectivity of an Engagement Quality Reviewer (EQR) and other appropriate reviewers,
• The quality management-related conforming amendments that were issued as a result of the finalisation of the IAASB’s suite of quality management standards.

To access the text of the publication, please click here

In April 2023, the International Ethics Standards Board for Accountants (IESBA) released final revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code). These revisions increase the Code’s robustness and expand its relevance in a world being fundamentally reshaped by rapid technological advancements and accelerating digitalisation.

These technology-related revisions will guide the ethical mindset and behavior of professional accountants in both business and public practice as they take advantage of the opportunities created by technology and adapt to new technology. Developed to remain relevant and applicable in the ever-evolving landscape of technology transformation, the revisions apply to the use of any technology, including to the extent possible, future technologies.

The revisions mainly include the following:

• Strengthen the Code in guiding the mindset and behavior of professional accountants when they use technology
• Provide enhanced guidance fit for the digital age in relation to the fundamental principles of confidentiality, and professional competence and due care, as well as in dealing with circumstances of complexity
• Strengthen and clarify the International Independence Standards (IIS) by addressing the circumstances in which firms and network firms may or may not provide a technology-related non-assurance service to an audit or assurance client.

The revisions to the IIS will be effective for audits and reviews of financial statements for periods beginning on or after December 15, 2024. The other revisions to the ethics provisions of the Code will be effective as of December 15, 2024. Early adoption is permitted.

To access the text of the revisions to the Code, please click here