02 June 2017

ACCA: Revisions to the Code of Ethics for professional accountants

ACCA responded to the IESBA's consultation and said the Code needs to be clear and consistent. Removing much of the repetition in the current draft circulated for comment is a simple way to achieve this clarity and make the document less lengthy.

ACCA is also urging the IESBA not to lose sight of the risk that the Code could be seen as becoming more rules based. ACCA favours a principles-based approach.

ACCA is particularly supportive of the intended changes to the independence sections of the Code - International Independence Standards (IISs).

Sundeep Takwani, ACCA’s director of regulation, explains: ‘This change recognises the difference between the need for independence in respect of some assurance engagements, and the fundamental ethical principle of independence, which is relevant to all professional accountants. ACCA believes that these IISs are needed to carry more prohibitions to enhance independence in appearance and enforceability.’

Commenting on compliance, Sundeep Takwani adds: ‘Care should be taken with revisions to the Code to ensure that it does not move away from a principles-based code. Compliance is important, and a clear and concise code that all the profession can understand is a key priority – especially for Small and Medium Practices.

‘Complying with a Code that is a set of rules has little value if, in some situations, compliance with those rules does not bring about compliance with fundamental ethical principles. It’s therefore important that the IESBA focuses on making the conceptual framework as easy as possible to understand and follow.

‘ACCA is a firm and active supporter of IFAC, and we share its strong focus on professional values, ethics and governance. ACCA believes that the global profession benefits from a strong ethical code. Revising the Code is a big task, and the IESBA should be congratulated on its openness and willingness to engage the profession in its project to review the structure of the Code.’

Full press release

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