IESBA Releases Guidance on External Experts and Sustainability Assurance for Accountants

What's Happening?

The International Ethics Standards Board for Accountants (IESBA) has published two new guidance documents to assist accountants in implementing recent ethics standards related to the use of external experts and sustainability assurance. These standards, set to take effect in December 2026, aim to prepare accountants for the implications of these changes. The guidance includes a publication titled 'Questions and Answers on Using the Work of an External Expert,' which addresses how to evaluate the necessity of external experts, identify them, and assess their objectivity, competence, and capabilities. The guidance also highlights potential threats and considerations specific to sustainability assurance engagements.

Why It's Important?

The release of these guidance documents is significant as it addresses the growing need for expertise in sustainability assurance, a field that is becoming increasingly important in the accounting industry. By providing clear guidelines on the use of external experts, IESBA is helping accountants navigate complex ethical considerations and ensure the integrity of their work. This move is expected to enhance the quality and reliability of sustainability reporting, which is crucial for stakeholders who rely on accurate and transparent information to make informed decisions. The guidance also underscores the importance of objectivity and competence in the use of external experts, which is vital for maintaining trust in the accounting profession.

What's Next?

Accountants and firms will need to familiarize themselves with the new standards and guidance ahead of their implementation in December 2026. This may involve training and adjustments to current practices to align with the new requirements. As sustainability assurance becomes more prevalent, firms may also need to consider expanding their expertise in this area, potentially leading to increased demand for external experts. The IESBA's guidance will likely serve as a foundation for further developments in ethical standards related to sustainability and external expertise.