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    Saturday 19 January 2019

    Global Ethics Board resets expectations of professional accountants regarding inducements

    The International Ethics Standards Board for Accountants (IESBA) has released new enhancements to its global ethics code which address more fully the responsibilities of professional accountants around the offering and accepting of inducements.

    The revised standard sets out a comprehensive framework that more clearly delineates the boundaries of acceptable inducements, and guides the behaviour and actions of professional accountants in business and in public practice in situations involving inducements.

    Central to this framework is a new intent test that prohibits the offering or accepting of inducements where there is actual or perceived intent to improperly influence the behaviour of the recipient or of another individual. The framework also:

    • Clarifies the meaning of an inducement.
    • Establishes a requirement to understand and comply with laws and regulations that prohibit the offering or accepting of inducements in certain circumstances, such as in relation to bribery and corruption.
    • Guides professional accountants in applying the enhanced conceptual framework underpinning the International Code of Ethics for Professional Accountants (including International Independence Standards) where there is no improper intent.
    • Provides enhanced guidance on the offering and accepting of inducements by professional accountants’ immediate or close family members.

     The revised provisions become effective June 2019, including consequential amendments to the independence provisions of the Code addressing gifts and hospitality. The changes constitute the last piece of the recently revised and restructured Code.

    For more information, contact:
    Mohammed Yaqoob
    Nexia International
    E: myaqoob@nexia.com

    The International Ethics Standards Board for Accountants (IESBA) has released new enhancements to its global ethics code which address more fully the responsibilities of professional accountants around the offering and accepting of inducements.
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