LATEST UPDATE

Targeted Ethics Code Update on Firm Culture and Governance

• Single, high-level, overarching requirement anchors firm culture and governance in the Code globally, allowing for development of practical guidance outside the Code to support implementation.
• Targeted approach aims to minimise compliance burden and costs by avoiding prescriptive provisions.
• Exposure draft planned for December 2026, with final approval targeted by end 2027.

Firm culture and governance will be addressed through a targeted update to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code), available on:

https://www.ethicsboard.org/iesba-code

This follows a decision by the International Ethics Standards Board for Accountants (IESBA) at its June 2026 board meeting in New York.

The direction taken aims to develop a single, overarching requirement in the IESBA Code, supported by limited application material referencing eight proposed, interconnected Firm Culture and Governance (FCG) elements.

An exposure draft is planned for December 2026, with final approval targeted by the end of 2027.

For more information, please consult the IESBA FCG Snapshot, available on:

https://www.ethicsboard.org/news-events/2026-06/iesba-snapshot-firm-culture-and-governance-project