The FCGWG Final Report highlights the critical role of ethical culture and governance in addressing issues of unethical behavior within accounting firms. Through extensive outreach and research conducted in 2024, the FCGWG identified key drivers of an ethical firm culture, including ethical leadership, transparent accountability mechanisms, and governance frameworks that embed ethical values across all service lines.

The International Ethics Standards Board for Accountants (IESBA) launched a standard-setting project on accounting firm culture and governance, actioning the recommendations of the Working Group on Firm Culture and Governance in its fact-finding report, which was released today.

Key findings of the report include:

• The role of ethical leadership and robust governance within accounting firms as key drivers in creating a culture that promotes ethical behavior.
• The importance of transparent and ethical leadership, firm-wide accountability mechanisms and the provision of independent input.
• The need for alignment of performance incentives with ethical behavior, continuous ethics education, and a culture of open discussion and challenge.  

Taking into consideration the Working Group’s conclusions and recommendations, the standard-setting project aims to develop a principles-based culture and governance framework for accounting firms that promotes, supports and reinforces a high standard of ethical behavior across all their professional services.

As part of this strategic initiative, the IESBA will also develop non-authoritative materials to raise awareness about the importance of ethical behavior in accounting firms and support firms with guidance on embedding ethics into their strategies and operations. These will also help involve other stakeholders who might contribute to developing an ecosystem for highly ethical accounting firms.

The IESBA will conduct a series of in-person and virtual global roundtables in March and April 2025 to gather views from a broad range of stakeholders. The in-person roundtables will be held in New York City, USA; Melbourne, Australia; Brussels, Belgium; and Kuala Lumpur, Malaysia. Further details will be announced in due course.

Gabriela Figueiredo Dias, Chair of the IESBA, said, “Ethics is foundational to the work of all accounting firms and all the professionals therein. It is their gateway to public trust in their professional services. I commend the Working Group on tabling a comprehensive report, identifying the key areas of focus we will be probing carefully and systematically, in collaboration with stakeholders, as we seek to develop a global framework for culture and governance for firms. It is our strong conviction that this framework will enable firms to be highly ethical firms consistently, strengthening their resilience against risks of unethical behavior, maintaining a good reputation, and ensuring their long-term sustainability to serve clients, investors, other stakeholders, and the public interest.”

Established in March 2024, the Working Group’s charge included, among other matters, gathering an understanding of culture and governance and their impact on compliance with ethical requirements in accounting firms and, where applicable, their networks and developing recommendations for the IESBA.

The development of the report was informed by extensive outreach to stakeholders, including regulators and oversight bodies, investors and the corporate governance community, accounting firms, professional accountancy organizations, national standard setters, and the Stakeholder Advisory Council, as well as a review of academic literature.

The topic of accounting firm culture and governance is a strategic priority for the IESBA following a spate of high-profile cases of unethical behavior in accounting firms in several jurisdictions in recent years. These cases have led to adverse consequences for individual professional accountants and their firms in multiple jurisdictions. 

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting high-quality, international ethics (including independence) standards as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.

On behalf of the IAASB, Happy New Year to all. The IAASB closed out a productive 2024 by approving ISA 570 (Revised), Going Concern closely following the September 2024 approval of ISSA 5000, General Requirements for Sustainability Assurance Engagements. It is natural for our stakeholders to want to know what the IAASB plans to do in 2025. Our strategy document, Elevating Trust in Audit and Assurance, provides clear guidance.

For 2025, from a standard-setting standpoint, we are translating the strategy into three leading tasks:

1. Finish what we have started.
2. Give the market time and support to ensure high-quality implementation.
3. Increase our focus on technology to enhance audit and assurance quality.

Finish what we have started. By the end of the first half of 2025, the IAASB will complete its projects on Fraud and the second phase of our IESBA convergence work on Listed and Public Interest Entities. The IAASB intends to approve revisions to the Fraud standard in March and will undertake a consultation and outreach on Listed and Public Entities in Q1 to permit June 2025 approval. With the finalization of these projects, an important phase of our 2024-2027 work plan ends.

Give the market time and support to ensure high-quality implementation. In recent years, IAASB major initiatives included ISA 315 (Revised 2019), the quality management suite of standards (ISQMs 1 and 2, and ISA 220 (Revised), group audits (ISA 600 (Revised), the ISA for Audits of Financial Statements of Less Complex Entities, ISSA 5000, and going concern (ISA 570 (Revised 2024). With the addition of the standards we anticipate finalizing in the first half of 2025, our focus will turn to supporting implementation of these standards, allowing time for their effective adoption, and beginning to assess their effectiveness through post-implementation reviews. For example, jointly with IESBA, we will be launching comprehensive implementation support plans for our sustainability standards at the end of January.

Increase our focus on technology to enhance audit and assurance quality. As our work plan transitions, there will necessarily be a period of calm in terms of new standards coming into effect.  However, we will not slow our work on key public interest topics. In September, the IAASB approved a new Technology Position and “committed to actively facilitating and, where appropriate, encouraging the appropriate use of technology.” While technology is not the sole driver, a dedicated focus on technology will be a priority over the next three years. Our recent project proposal to revise our Audit Evidence and Risk Response standards, scheduled to be completed in early 2027, highlights this commitment. We will be updating our project timelines shortly to reflect the technology priority.

The IAASB has emphasized the value of stakeholder engagement and has deepened outreach over recent years. As we pursue the three actions above, expect this level of outreach to continue.

Professional accountants in business (PAIBs) play a crucial role in advancing sustainable business practices, promoting transparency, and enhancing the economic and social prosperity of communities across the globe. 

In its final meeting of 2024, IFAC’s PAIB Advisory Group explored the transformative role of PAIBs in tackling global challenges and seizing new opportunities to strengthen the role of accountants in driving business success and resilience. Discussions focused on navigating systemic risks, fostering innovation, and advancing sustainability to position PAIBs as key enablers of transformational change. 

Key themes included: 

• Embracing AI for Innovation: Generative AI is revolutionizing the work of PAIBs. A case study on internal audit highlighted its use, saving time and enhancing strategic insights. 
• Driving Climate Resilience: PAIBs are crucial in improving sustainability information and disclosure and mobilizing investments to support low-carbon transitions. 
• Integrated Thinking and Decision-Making: Breaking silos to enable holistic decision-making and creating long-term value requires integrated thinking capabilities which can vary by career stage or role. 
• Supply Chain Management and Procurement: PAIBs can partner with procurement, operations, and compliance teams to achieve ethical and sustainable procurement and supply chain management practices. 

Sanjay Rughani, PAIB Chair, said: “In this era of transformation, professional accountants are uniquely positioned to drive change and create value across organizations. By embracing innovation and integrated thinking, PAIBs can lead the way in shaping a resilient, sustainable future.” 

Explore their discussions in Enabling Global Transformation: Opportunities for Professional Accountants in Business.  

IFAC remains committed to equipping PAIBs with the tools and resources to thrive in a dynamic global landscape. The next PAIB Advisory Group meeting will take place in April 2025 in Tokyo, hosted by the Japanese Institute of Certified Public Accountants (JICPA). 

About IFAC’s PAIB Advisory Group 

Formed in 1977, the PAIB Advisory Group is comprised of volunteers with experience and expertise in the world of business and the public sector, nominated by the professional accountancy organizations that make up IFAC’s membership. 

By bringing these experts together, IFAC delivers thought leadership, fosters collaboration, and equips its member organizations with tools and strategies to support their members in navigating complex, evolving business landscapes. 

About IFAC 

IFAC, by connecting and uniting its members, makes the accountancy profession truly global. 

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition. 

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest. 

It is with profound sadness that IFEA announces the passing of Imran Vanker, a valued member of the IFEA family. We extend our deepest condolences to his family and friends following the tragic and sudden loss of Imran and his daughter yesterday. Our hearts go out to their loved ones during this unimaginable time.

Imran was a member of the IAASB from 2016 to 2021 and, through his work at the Independent Regulatory Board for Auditors (IRBA) in South Africa, remained an esteemed colleague and member of the IAASB community. His passing, alongside that of his daughter, leaves an irreplaceable void.

Imran was a staunch supporter of IESBA, actively participating as a member of the IESBA-National Standard Setters liaison group. His commitment to ethical behavior was demonstrated through his inspiration and significant contributions during his years of service. 

“Imran will be remembered not only for his many contributions to the audit profession but also for the warmth and goodwill he brought to all IAASB discussions. Imran had a passion for serving the public interest, one that will be hard to replicate,” said Tom Seidenstein, IAASB Chair.

‘’Imran was a friend of the IESBA and a passionate advocate for ethics and integrity in the accounting profession. Imran’s legacy of ethical leadership will continue to guide us, and his memory will remain a source of inspiration for all who strive to uphold the highest standards in our work,” said Gabriela Figueiredo Dias, IESBA Chair.

As an organization, we share in the sorrow of this loss and are keeping the Vanker family in our thoughts. We will continue to honor their memory during this difficult time.

The International Federation of Accountants (IFAC) congratulates Professor Jens Poll on his appointment as President of Accountancy Europe for the 2025-2026 term and Giancarlo Attolini as Deputy President. Both Jens Poll and Giancarlo Attolini bring a wealth of expertise and experience to their new roles.

Lee White, CEO of IFAC, commented: “I warmly congratulate Jens Poll on becoming President of Accountancy Europe. Jens’ longstanding commitment to the profession, including as Accountancy Europe Deputy President, as well as his time as a member of the International Ethics Standards Board for Accountants (IESBA), as Vice Chair of the IFAC Small and Medium Practices Committee and as Chair of the European Group of International Accounting Networks and Associations (EGIAN), demonstrate his dedication to upholding and advancing high-quality global ethical standards, and to the profession’s future. His guidance will undoubtedly help steer Accountancy Europe through a period of critical transformation, addressing challenges and opportunities that shape our profession globally.”

Welcoming Giancarlo Attolini, Lee White added: “We are equally pleased to see Giancarlo Attolini take on the role of Accountancy Europe Deputy President. Having contributed significantly as an Accountancy Europe Board member since 2023, Giancarlo brings extremely valuable leadership that will strengthen Accountancy Europe’s mission. In addition, as past Chair of the IFAC Small and Medium Practices Committee and founding partner of Attolini Spaggiari & Associati Studio Legale e Tributario, Giancarlo has been a steadfast advocate for the needs of small and medium-sized practices and has played a pivotal role in promoting practices transformation.”

Lee White emphasized: “Jens’ and Giancarlo’s deep involvement with IFAC underlines their leadership and vision for the global profession. Their new roles will only enhance the already strong collaboration between IFAC and Accountancy Europe as we continue working together towards our shared goals of transparency and accountability, as well as of sustainability and digital transformations, in the public interest.”

IFAC also extends a warm welcome to Eelco van der Enden as the new Chief Executive Officer of Accountancy Europe. Lee White shared: “I am delighted to see Eelco assume this role. His extensive experience and proven leadership will be pivotal in guiding Accountancy Europe into a new chapter and I look forward to collaborating with him and the Accountancy Europe team.”

Finally, Lee White congratulates Mark Vaessen on his leadership as Accountancy Europe President for 2023-2024, and in particular for overseeing the successful CEO transition from Olivier Boutellis-Taft to Eelco van der Enden. Mark will continue to serve the global accountancy profession, having been appointed to the IFAC Board in November 2024.

Accountancy Europe and IFAC share a deep commitment to supporting the profession, and fostering high-quality standards and practices that build trust in organizations, drive innovation, and advance sustainability, while ensuring investor and consumer protection.

About IFAC
IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.