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.

New Article from the IAASB

"The publication assists auditors in understanding whether a procedure involving automated tools and techniques may be both a risk assessment procedure and a further audit procedure. It also provides specific considerations when using automated tools and techniques in performing substantive analytical procedures in accordance with International Standard on Auditing 520, Analytical Procedures..."

Russian Roulette, Covid19 & The Curious British Decision on Spain Travel

All are in tizzy: normal rules don't seem to apply. Well, rules of #risk & #governance #management DO obtain. 1- do not panic: emotions drive bad decisions! 2- be proactive & not reactive! Proactiveness starts with “first principles” – strip away noise & see the bare bones. What are COVID's first principles? 1- it isn't an existential threat to #society! Worst, it may do less or as much fatal harm as #HIV/AIDS. 2- it strikes via #uncertainty of incidence and a savage reduction of personal and business #confidence. So, COVID19 is Russian Roulette, no one knows whether their shot has the bullet! That wrecks economies and may kill more than the #virus! So, reduce uncertainty via governance decisions. Ok, why the British reversal of its #quarantine order on travel to #Spain? Well, it looks good as a reaction, but it reduces virus uncertainty by a tiny amount in exchange for a major spike in economic uncertainty that may do more harm! Better the #SierraLeone approach of “test before you leave, test when you land, test when you come back” plus monitor after arrival? Surgical precision vs Sledgehammer?