The revamped code becomes effective in June 2019 and includes major revisions to the unifying conceptual framework.

These include revised ‘safeguard’ provisions better aligned to threats to compliance with the fundamental principles. There are also stronger independence provisions regarding long association of personnel with audit clients.

There are new and revised sections dedicated to professional accountants in business (PAIBs) relating to preparing and presenting information and pressure to breach the fundamental principles. The guidance makes clear for accountants in public practice that relevant PAIB provisions are applicable to them.

In addition, there is new guidance to emphasise 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 scepticism in an audit or other assurance engagements.

IESBA chairman Dr Stavros Thomadakis said: ‘The code is now a significantly strengthened platform, re-engineered for greater usability while maintaining global applicability. It underscores the importance of the fundamental principles for all professional accountants.

‘Critical work begins now within firms, national standards setters, regulators and audit oversight bodies, educators, IFAC member bodies and others to promote awareness of the Code, and support its adoption and implementation.’

Renamed the international code of ethics for professional accountants (including international independence standards), the new code is the culmination of extensive research and global stakeholder consultation. IESBA is to release implementation resources and other supporting materials throughout the period leading up to the effective date.

The international code of ethics for professional accountants is here.

Report by Pat Sweet