2018 Year 4 Month, International Ethics Standards Board for Accountants ( IESBA ) has released the newly revised International Code of Ethics for Accountants (including the International Standards on Independence, hereinafter referred to as the New Code).

The new code completely rewrites the existing code, making it easier to read, understand, and implement. In addition to structural adjustments, the new code also integrates... IESBA The significant achievements made over the past four years in establishing professional ethical standards have provided clearer guidance on how professional accountants should address issues related to professional ethics and independence. The new code of conduct introduces the following key improvements:

First, we have optimized the chapter structure and writing style of the current international code to make it easier to understand and implement. Each section of the new code consists of three parts: an introduction, requirements, and application materials, thereby clarifying the overall structure of the code. Among these: “ Introduction ” Partly used to introduce the matters that this section aims to clarify, and to lead into the section’s requirements and application materials within the context of the conceptual framework. “ Requirements ” Specifically address the general obligations or particular responsibilities that professional accountants should fulfill with regard to the matters to be clarified in this section; “ Applied Materials ” Some sections are intended to provide relevant background information, explanations, recommendations for action or considerations, examples, and other guidance to help professional accountants better comply with the requirements.

Second, it provides specific guidance on how to apply the conceptual framework for professional ethics in various scenarios, including auditors performing audit and review engagements, professional accountants in industry and commerce performing audit and review engagements, auditors conducting other attestation engagements, and so forth. It also explicitly requires auditors to remain vigilant about newly acquired information and changes in circumstances when applying the conceptual framework for professional ethics, thereby strengthening the framework itself.

Third is integration. “ Preventive measures ” The project’s latest findings enable the preventive measures stipulated in the code to better align with the adverse impacts on professional ethics.

Fourth, new provisions have been added or existing provisions revised to address how professional accountants in the business and industrial sectors should handle situations involving the preparation and presentation of financial information as well as pressures they may face when confronted with violations of fundamental ethical principles.

Fifth, it provides clear guidance on situations where certain provisions applicable to professional accountants in the industrial and commercial sectors also apply to auditors.

Sixth, guidance has been added on how to apply professional judgment when encountering matters related to professional ethics.

Seventh, guidance has been added on how to apply professional skepticism in audit or other attestation engagements.

New rules since 2019 Year 6 Moon 15 Effective from the date of issuance.