What's Happening?
The International Ethics Standards Board for Accountants (IESBA) has published guidance to assist accountants in implementing new ethics standards related to the use of external experts and sustainability assurance. These standards, effective December 2026, aim to help accountants evaluate the use of external experts, assess their objectivity, and address potential threats in audit and assurance engagements. The guidance includes a Q&A publication that covers identifying and evaluating external experts, ensuring their competence and objectivity, and specific considerations for sustainability assurance.
Why It's Important?
The guidance from IESBA is crucial for accountants as they prepare to implement new standards that emphasize ethical considerations in using external experts. As sustainability becomes a more significant focus in business practices, ensuring the integrity and objectivity of external experts is vital for accurate and reliable sustainability assurance. This guidance supports accountants in navigating complex ethical challenges, promoting transparency and trust in financial reporting and sustainability practices.
What's Next?
Accountants will need to familiarize themselves with the new standards and guidance ahead of their implementation in December 2026. Firms may need to adjust their audit and assurance processes to incorporate these ethical standards, potentially requiring additional training and resources. As sustainability continues to gain importance, accountants will play a critical role in ensuring ethical compliance and accurate reporting, influencing business practices and stakeholder trust.
