IRBA: Final Ethics Standards for Sustainability Assurance

Posted 09 March 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The IRBA has prescribed new ethical and independence standards for sustainability assurance, introducing a dedicated Part 5 to the IRBA Code of Professional Conduct to ensure equivalence with financial audit standards.

In terms of the Auditing Profession Act, No. 26 of 2005, the Independent Regulatory Board for Auditors (IRBA) has approved the Final Pronouncement: Ethics Standards for Sustainability Assurance (Including Independence Standards) and Other Revisions Relating to Sustainability Assurance and Reporting, Including the Using the Work of an External Expert Standard. This pronouncement incorporates specific South African enhancements for use by registered auditors.

The development introduces a new Part 5 to the IRBA Code of Professional Conduct for Registered Auditors (IRBA Code), creating a comprehensive framework for sustainability assurance engagements. These standards are designed to achieve equivalence with Part 4A of the IRBA Code, ensuring that the same high ethical and independence principles governing financial statement audits are applied to sustainability information. The IRBA has also issued consequential amendments to localisations in Section 321 (Second Opinions) and Section 400 (Applying the Conceptual Framework to Independence for Audit and Review Engagements).

Key Regulatory Enhancements

  • Value Chain Components: The standards provide clarity on independence provisions relating to value chain components and the use of another practitioner.
  • External Experts: New provisions address the ethical requirements when using the work of an external expert within a sustainability reporting context.
  • Dual Engagements: Specific enhancements address scenarios where registered auditors provide both financial audit and sustainability assurance services to ensure consistent ethical application.
  • Transparency: Improved scoping and transparency requirements to promote consistent application across the profession.

The IRBA will host a virtual launch webinar on 16 March 2026 to provide an overview of International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, and the application of these Ethics Standards in the South African context.

Click here to download the Final Pronouncement — Ethics Standards for Sustainability Assurance Engagements with SA Enhancements.

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

  • For yourself: You must familiarize yourself with the new Part 5 of the IRBA Code to ensure that any sustainability assurance work you perform meets the same independence thresholds as statutory financial audits.
  • For your business: Audit firms must update their quality management systems and independence policies to include the specific South African enhancements regarding value chain scoping and the use of external experts.
  • For your clients: Clients preparing sustainability reports for assurance will need to provide more granular data regarding their value chain to allow auditors to satisfy the new independence and scoping requirements.

Originally published at https://accountingacademy.co.za/news/read/irba-final-pronouncement-ethics-standards-for-sustainability-assurance

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