1. Complying with the Code, Fundamental Principles and Conceptual Framework
2. Professional Accountants in Business
3. Professional Accountants in Public Practice
4. Independence for Audit and Review Engagements
5. Independence for Assurance Engagements Other than Audit and Review Engagements
In May 2026, the IESBA published a new guide, Proportionality of the IESBA Code, to provide assistance in application of the Code in various situations.
The Guide is organized into seven sections:
1. Ethics Is Not Proportionate – The IESBA Ethics Code Is
2. Proportionality at the Core of the Ethics and Independence Standards
3. Applicability of the Different Parts of the Code
4. Proportionality in Action for Professional Accountants in Business
5. Proportionality in Action for Professional Accountants in Public Practice
6. Proportionality of the International Independence Standards
7. A Proportionate and Targeted Approach to Documentation
The guide emphasizes from the start that ethics are not proportionate, but the Code is. Just as accounting standards, such as the FASB’s (Financial Accounting Standards Board pronouncements) are principles based, the Code is broad based so that it can be adapted and applied to the various circumstances that are encountered.
The five fundamental principles are integrity, objectivity, competence and due care, confidentiality, and professional behavior.
The IESBA conceptual framework states that threats are to be identified, evaluated, and addressed by exercising professional judgment, have an inquiring mind, and using the reasonable and informed third party test.
A table in the Guide indicates which parts of the above five-part Code apply to each of the following categories of professional accountants:
1. Professional accountants in business (PAIB) – Parts 1 & 2
2. Professional accountants in public practice (PAPP) not performing assurance services – Parts 1 & 3
3. PAPP performing audit and review engagements – Parts 1, 3 & 4a
4. PAPP performing assurance services other than audit, review and sustainability engagements – Parts 1,3 & 4b
5. PAPP performing services for the firm as contractor, employee, or owner –Parts 1 & 2
6. PAs or other practitioners performing sustainability assurance engagements – Part 5
The specificity of the guide should prove useful to accountants in the variety of roles that they play. Along with the fundamental principles, the importance of independence is described and emphasized, as well as guidance on documentation, and application to sustainability assurance engagements.
Further details can be found at IESBA releases new guide on proportionality of the IESBA code.
