This is the third and final installment in a three-part publication series to help small- and medium-sized practices implement the International Auditing and Assurance Standards Board’s new quality management standards. The IAASB’s suite of quality management standards were issued in December 2020 and came into effect in December 2022.

Installment Three: Monitoring and Remediation provides tips and guidance for the practical implementation of the monitoring and remediation of a firm’s system of quality management.  

This publication is an update to the IESBA Staff's Questions and Answers (Q&As) publication, originally published in March 2023, on the revisions to the definitions of listed entity and public interest entity (PIE) in the IESBA Code of Ethics.

The International Ethics Standards Board for Accountants (IESBA) today released the 2024 Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards). This handbook replaces the 2023 edition and incorporates the following:

• The revisions relating to the definition of a public interest entity which, among other matters, specifies a broader list of mandatory public interest entity categories, including a new category “publicly traded entity” to replace the category of “listed entity.”
  • The revised public interest entity definition and related provisions will be effective for audits of financial statements for periods beginning on or after December 15, 2024.
• 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 revised definitions will be effective for audits of financial statements and group financial statements for periods beginning on or after December 15, 2024.
• Technology-related provisions of the Code.
  • The technology-related revisions to Parts 1 to 3 will be effective as of December 15, 2024.
  • 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.

The back of the 2024 Handbook contains the IESBA-approved revisions to the Code addressing Tax Planning and Related Services, which will become effective after June 2025.

Click here to learn more about the IESBA Code.

Reproducing and Translating the IESBA Handbook
To help adoption and implementation of the IESBA standards, stakeholders are invited to submit requests for permission to reproduce or translate the IESBA Handbook online via the Online Permissions Requests or Inquiries system on the IFAC website.

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. 

 This handbook replaces the 2023 edition and incorporates the following:

The IESBA today submitted a comment letter to the Committee of European Auditing Oversight Bodies (CEAOB) regarding the CEAOB’s draft non-binding guidelines on limited assurance on sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD) in the European Union (EU).

Starting from financial years beginning on or after January 1, 2024, large companies in the EU are required to draw up sustainability statements in accordance with the European Sustainability Reporting Standards (ESRS). These statements are required to be subject to an assurance engagement by statutory auditors or other assurance services providers.

To prevent fragmentation and promote consistency in practices until the European Commission’s (EC) adoption of an assurance standard at EU level by October 1, 2026, the EC has invited the CEAOB to develop non-binding guidelines regarding limited assurance on sustainability reporting.

To read the full comment letter, please click here.

About IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting high-quality ethics standards, including independence requirements, 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 (“IAASB”), the IESBA is part of the International Foundation for Ethics and Audit (“IFEA”). The Public Interest Oversight Board (“PIOB”) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.

On July 22, 2024, The IESBA submitted a comment letter to the Committee of European Auditing Oversight Bodies (CEAOB) regarding the CEAOB’s draft non-binding guidelines on limited assurance on sustainability reporting under the Corporate Sustainability Reporting Directive (CSRD) in the European Union (EU).