International Ethics Standards Board for Accountants (IESBA)
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting body affiliated with the International Federation of Accountants (IFAC). The IESBA develops and promotes ethical standards and guidelines for professional accountants globally. The board’s primary objective is to support and enhance the integrity, transparency, and quality of financial reporting, audit, and assurance.
The principal standard issued by the IESBA is the International Code of Ethics for Professional Accountants, including International Independence Standards. This detailed guidance ensures that accountants operate under strict ethical principles, maintaining public trust and confidence in the profession.
Examples
- Independence Standards: Auditors must remain independent of clients to ensure unbiased and objective audit findings.
- Integrity Requirements: Accountants are required to act with honesty and integrity in all professional and business relationships.
- Confidentiality: Accountants must respect the confidentiality of information acquired as a result of professional and business relationships and must not disclose any such information without proper authority.
Frequently Asked Questions (FAQs)
What does IESBA stand for?
IESBA stands for the International Ethics Standards Board for Accountants.
What is the role of IESBA?
IESBA is responsible for developing and issuing high-quality ethical standards and guidance for professional accountants worldwide.
How does IESBA contribute to the accounting profession?
By developing ethical standards, IESBA enhances the integrity, transparency, and quality of financial reporting, audit, and assurance globally.
What is the International Code of Ethics for Professional Accountants?
It is a comprehensive set of principles and standards issued by IESBA that guide the ethical conduct of professional accountants.
Why is independence important in the standards set by IESBA?
Independence prevents conflicts of interest, ensuring that auditors and accountants maintain objectivity and integrity in their work.
Related Terms
- Ethics in Accounting: The principles guiding the professional conduct of accountants.
- IFAC (International Federation of Accountants): The global organization for the accountancy profession, which IESBA is a part of.
- Audit Standards: Guidelines to ensure the quality and integrity of audit practices.
- Professional Conduct: The standard of behavior expected of accountants in their professional duties.
Online References
- IESBA Official Website
- IFAC - International Federation of Accountants
- International Code of Ethics for Professional Accountants
Suggested Books for Further Studies
- “Ethics and Professional Conduct for Accountants” by Jill Collis
- “Accounting Ethics” by Ronald Duska and Brenda Shay Duska
- “Ethics and Auditing” by Tom Campbell and Keith Houghton
- “Ethical Obligations and Decision-Making in Accounting” by Steven M. Mintz and Roselyn E. Morris
Accounting Basics: “IESBA” Fundamentals Quiz
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