With this consultation, IESBA seeks input from stakeholders on ‘approaches that could be taken to improve the clarity and usability of the Code, thereby facilitating its adoption, effective implementation, and consistent application’.

FEE agrees with the consultation’s emphasis on the importance of the principles-based conceptual framework and how it serves to protect fundamental ethical principles. For FEE, the primary objective of this restructuring exercise should be to make the Code clearer and more understandable. In its response, FEE outlines a few points which it believes require further consideration. For instance, it would be advantageous to distinguish between the fundamental principles and other concepts that were derived from such principles, or, in other words, to differentiate between provisions that deal with ethical requirements and those provisions that require formal compliance and enforceability. In addition, FEE recommends that the existing link between the Code, ISQC 1 and ISAs be maintained.

Related files:

 FEE Comments on Improving the Structure of the Code

Related links:

Consultation paper: Improving the Structure of the Code of Ethics for Professional Accountants