Firm Culture and Governance

The objective of the project is to develop a culture and governance framework that promotes, supports and reinforces a high standard of ethical behavior by a firm's leadership, other partners, and staff across all of the firm’s services, thereby helping the firm develop a reputation as a highly ethical firm, mitigate the risks of unethical behavior and strengthen public trust and confidence in all of its services.

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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.