IESBA Releases Feedback Summary on Firm Culture and Governance

Posted 24 July 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The International Ethics Standards Board for Accountants (IESBA) has issued a summary of stakeholder feedback regarding its Firm Culture and Governance (FCG) project. This report signals upcoming regulatory focus on the intersection of firm leadership and ethical compliance.

In terms of the International Code of Ethics for Professional Accountants (including International Independence Standards), the International Ethics Standards Board for Accountants (IESBA) has released the publication “Firm Culture and Governance: Summary of Feedback from Global Roundtables.” This document captures insights from six global roundtables held during 2025 to evaluate how firm-level governance structures influence the ethical behavior of professional accountants.

The IESBA has confirmed its intention to take decisive steps to address the cultural and governance dimensions within accounting firms. The Board recognizes that these dimensions have a critical impact on the implementation of the Code. The feedback will shape future work and potential amendments to the Code, focusing on the following areas:

  • The responsibility of firm leadership in establishing and maintaining an ethical culture.
  • The effectiveness of governance mechanisms in mitigating risks to ethical principles.
  • The alignment of firm-wide incentives with the fundamental principles of the Code.
  • The specific challenges faced by different firm structures and sizes in maintaining consistent ethical standards.

Click here to download the IESBA Summary of Feedback from Roundtables.

What this means for you, your business, or your clients

  • For yourself: Professional accountants must monitor IESBA updates to the Code of Ethics, as future amendments will likely impose stricter personal accountability for firm-wide ethical failures.
  • For your business: Audit and accounting firms should begin a preliminary review of their internal governance frameworks and “tone at the top” to ensure they can demonstrate an active commitment to an ethical culture as part of future quality management and ethics standards.
  • For your clients: Clients should be informed that audit and accounting firms are under increasing global regulatory pressure to demonstrate ethical governance, which may lead to more stringent compliance requests during engagements.

Originally published at https://accountingacademy.co.za/news/read/iesba-summary-of-feedback-from-global-roundtables-on-firm-culture-and-governance

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