The UK Financial Reporting Council (FRC) has opened a consultation on updates to the regulator’s ethical standard, a news release said. The amendments aim to further enhance and clarify the principles of integrity, objectivity, and independence auditors must abide by.
The proposed revisions come in response to the government’s proposed changes to the statutory public interest entity definition, the release said. The new standard has also been revised to ensure breaches of ethical standards are reported to the FRC on a more timely basis.
“The proposed revisions to the ethical standard enhance prohibitions where an audit firm’s independence could be threatened by an economic overreliance on fees from specific entities that are connected,” the release said.
Additional changes reflect significant developments in the International Ethics Standards Board for Accountants (IESBA) code since the FRC last revised the standard in 2019.
“High standards of ethical behaviour go to the heart of high-quality audit and are designed to ensure auditors act with independence, objectivity, and integrity at all times,” Mark Babington, the FRC’s executive director of regulatory standards, said in the release.
The consultation closes on 31 October. Comments should be sent to James Ferris at AAT@frc.org.uk.
IFAC calls for inclusive growth in approach to sustainability
The International Federation of Accountants (IFAC) is stressing the importance of inclusivity in achieving the UN’s global Sustainable Development Goals (SDGs), according to the organisation’s recently released 2023 Call to Action.
“We must approach sustainability, the public sector, small- and medium-sized entities (SMEs), and education with an inclusive approach to make sure that the opportunities of today and tomorrow are shared, and that economic and social development are truly sustainable,” an IFAC news release said. “This is an important juncture for global leaders to reflect on the progress we have made, the progress we have not made, and the challenges we face ahead.”
IFAC, ahead of a September UN meeting, is calling on G20 countries to take the lead on making sustainability a reality and not just a goal. The UN has announced 17 SDGs it aims to have in place by 2030.
“We have serious challenges ahead of us,” IFAC CEO Kevin Dancey said in the release. “Fortunately, the global accountancy profession is a committed partner, doing our part to drive sustainable development and demonstrating leadership as a truly global and inclusive profession.”
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
