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Private Equity Investment in Accounting Firms, and Related Ethical and Independence Considerations
Private equity (PE) investment in accounting firms has grown significantly over the past five years in a number of major jurisdictions.
Such investment may trigger ethical and independence implications, as a result of related structural, strategic and operational changes to a firm.
A Staff Alert, which highlights key ethical matters that accounting firms should bear in mind when considering, or accepting investment from PE organisations has been issued by the International Ethics Standards Board for Accountants (IESBA).
Titled, Private Equity Investment in Accounting Firms: Key Ethics and Independence Considerations, the Staff Alert draws the attention of professional accountants in public practice, particularly accounting firm leadership, to important ethics and independence provisions in the International Code of Ethics for Professional Accountants (including International Independence Standards) that remain applicable both before and after PE investment in an accounting firm.
The Staff Alert aims to foster understanding of key ethical and independence implications for accounting firm leadership to consider, both pre and post-PE investment.
It is available on:
