Reinforcing the key role of accountants and auditors in delivering the lubricant of trust to national and global economic engines.

Reinforcing the role of accountants and auditors in delivering the lubricant of trust to national and global economic engines.

"The International Ethics Standards Board for Accountants (IESBA) TODAY released revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to better promote the role and mindset expected of all professional accountants.

The revisions explicitly recognize that the accountancy profession is entrusted with public confidence in the wide-ranging roles it plays in society and that such confidence is based on the skills and values it brings to its professional activities. Importantly, they reaffirm the profession’s responsibility to act in the public interest and the fundamental role of the Code in meeting that responsibility.

Among other matters, the revisions:

Reinforce aspects of the principles of integrity, objectivity and professional behavior;

Raise behavioral expectations of all professional accountants through requiring them to have an inquiring mind as they undertake their professional activities;

Emphasize the importance of accountants being aware of the potential influence of bias in their judgments and decisions; and

Highlight the supportive role the right organizational culture can play in promoting ethical conduct and business..."

A Major Consultation from the IFRS Foundation

The IFRS Foundation starts a Major Consultation on a Role in Sustainability Standards

A major development, particularly timely as part of the post- COVID19 imperative to take nature's woes and man's unsustainable recklessness seriously. Too many, uncoordinated, sustainability standards initiatives, needs a harmonised global approach. The Foundation may be well placed to facilitate that harmonisation. I am in principle against monopolies, believing that plurality, well managed, can be a strategic eco-system strength. So, the challenge will be how to combine the efficiencies of central coordination with the effectiveness of a plural structure, securing buy-in from key stakeholders. As a former National Standard Setter (NSS), my experience is that the Foundation, through its links with NSSs and other eco-system entities for accounting standards, has already shown that such a combination of efficiency and effectiveness is possible. For all our sakes, let us hope that this initiative delivers results and FAST. Comments are due by 31 December 2020.

Audit Committee good practices during covid19

Reflections on observed boards of directors Audit Committee good practices during covid 19.

Worthwhile video from Center for Audit Quality. Key takeaways: -need for regular stress testing via modelling and scenario analyses to ensure adequate liquidity, hardnosed capex management, pruning of variable and discretionary costs.

-timely reviews of any fundamental shifts in market prospects and their implications.

-awareness of elevated value-chain exposure to cybersecurity risks and deployment of countermeasures backed by proactive communications.

-need for elevated and sustained committee communications with auditors

-assessment of effect of remote meetings on quality of committee oversight.

-assuring effective review and response to rapidly evolving enterprise risks.

-elevated and sustained communications with internal and external stakeholders and not just shareholders.

-remaining vigilant on COVID threat: it ain't over till it's over!

-staying true to longer term objectives and preparing for life after the crisis.