Book Publish Date
07-Apr-2025
Purpose of the Code:-
1. The International Code of Ethics for Professional Accountants (including International Independence Standards) sets out fundamental principles of ethics for professional accountants, reflecting the profession’s recognition of its public interest responsibility.
2. The Code provides a conceptual framework that professional accountants are to apply to identify, evaluate, and address threats to compliance with the fundamental principles.
3. In the case of audits, reviews, and other assurance engagements, the Code sets out International Independence Standards, established by the application of the conceptual framework to threats to independence in relation to these engagements.
What’s new in this guide?:-
The revised definition of a public interest entity (PIE) which, specifies a broader list of mandatory PIE categories, including a new category “publicly traded entity” to replace the category of “listed entity.”
Changes to the definitions of “audit client” and “group audit client” in the Glossary arising from the approved revisions to the definitions of listed entity and public interest entity.
The technology-related revisions to Part 4A will be effective for audits and reviews of financial statements for periods beginning on or after December 15, 2024. Early adoption is permitted.
Approved Changes that Are Not Yet Effective
Tax planning and related services provisions of the Code will be effective for tax planning activities beginning after June 30, 2025.
Transitional provision: For tax planning services or activities commenced before the above effective date, such services or activities may be continued and be completed under the extant provisions of the Code.