Firm Culture and Governance

In accordance with the IESBA Strategy and Work Plan 2024-2027 (SWP), this work stream will, amongst other things, explore the root causes of the ethical lapses and undertake a review of the provisions in the extant Code to determine if the Code should be further strengthened to promote a robust culture of ethical behavior within firms. The IESBA will also continue to promote the importance of ethics within firms, highlighting the profession’s responsibility to act in the public interest in the midst of increasing pressures on professional accountants to act unethically.

IESBA STAFF

• Geoffrey Kwan
• Carla Vijian

WORKING GROUP MEMBERS

• Channa Wijesinghe, IESBA Member and Chair of Working Group
• Rich Huesken, IESBA Member
• Héctor J. Lehuedé, IESBA Member
• Rania Uwaydah Mardini, IESBA Member

CONSULTANT

• Richard Fleck

IESBA December 2024 Meeting Highlights

The IESBA considered and accepted the Firm Culture and Governance Working Group’s (FCGWG) Final Report setting out the Working Group’s findings and recommendations based on information gathering carried out in 2024.

On the basis of the FCGWG’s recommendations, the IESBA also approved a project to commence in 2025 to develop a new standard incorporating an accounting firm culture and governance framework that emphasizes ethical values and supports the establishment of a strong ethical culture within accounting firms. The IESBA also agreed to initiate a separate workstream to develop non-authoritative materials (NAMs) that will complement the output of the standard-setting project.

In connection with the standard-setting project, the IESBA agreed to conduct a series of global in-person and virtual roundtables in Q1-Q2 of 2025 to gather input from a broad range of stakeholders. These roundtables will also help inform the IESBA’s work on its NAM workstream.