FOR IMMEDIATE RELEASE
Contact:
Laura E. Wilker
Head of Communications
+1-212-471-8707
IESBA PROPOSES CHANGE TO CODE OF ETHICS DEFINITION
OF THOSE CHARGED WITH GOVERNANCE
(New York, July 20, 2012) – The International Ethics Standards Board for Accountants (IESBA) today released for public exposure a
proposed change to the definition of “those charged with governance” in the IESBA Code of Ethics for Professional Accountants (the Code).
The objectives of the change are to more closely align the definition of “those charged with governance” in the Code with that in the IAASB’s International Standard on Auditing (ISA) 260, Communication with Those Charged with Governance, and to eliminate any confusion as to how it is defined. The IESBA is of the opinion that the proposals do not call for any change in systems or common practice, should they be approved.
The change specifically aims to clarify that a subgroup, such as an audit committee, may assist the governing body in meeting its responsibilities. In those cases, the auditor shall determine with whom within the entity’s governance structure to communicate.
“Through this Exposure Draft, the IESBA seeks to ascertain whether the proposed change to the definition adequately clarifies the term ‘those charged with governance.’ The IESBA believes this will contribute to more consistent application of the Code, which is critical to our mission to support the global adoption and implementation of the Code,” said Ken Dakdduk, chair of the IESBA.
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About the IESBA
The International
Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC. Please visit
www.ethicsboard.org for more information.
About IFAC
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.