Upcoming Exposure Drafts – “Ethics and Independence Standards for Sustainability Reporting and Assurance” and “Use of Experts”

The International Ethics Standards Board for Accountants (IESBA) intends to release two exposure drafts by the end of January 2024:

• The exposure draft on the new International Ethics Standards for Sustainability Assurance (including International Independence Standards) (“IESSA”), and proposed revisions to the International Code of Ethics for Professional Accountants (“the Code”) on sustainability reporting.

This exposure draft will establish the essential pillar of ethics, including independence, standards to support public and corporate trust in sustainability-related information, alongside sustainability reporting and assurance standards.

• The exposure draft on ‘Use of Experts’ proposing ethics provisions addressing the use of external experts by organizations as well as in the context of audit and assurance engagements, including sustainability assurance engagements. The proposed new section and consequential amendments will help public accountants and sustainability assurance practitioners meet public expectations concerning ethical behaviour when using external experts, especially in an audit or assurance context.