Ethical code setters fix sights on independence
Independence rules might be strengthened by the International Ethics Standards Board for Accountants
ACCOUNTANTS’ ETHICAL CODE might be strengthened to deal with breaches of independence and provide greater transparency, the International Ethics Standards Board for Accountants reports.
Proposed changes would require certain actions in case of a breach of the code, including immediate termination of any relationship that threatens independence and informing the relevant authorities.
IESBA chair Ken Dakdduk said: “The proposed changes to the code should help to ensure that the significance of any breach of an independence requirement is discussed with those charged with governance, and that professional judgment is taken into account when taking action.”
The IESBA is an independent standard setting board facilitated by the International Federation of Accountants.