Robust global auditing and ethical standards are essential for business, investor and public trust following publication of the Monitoring Group’s paper explaining the way ahead.

Speaking about the Monitoring Group’s recommendations, Maggie McGhee, executive director – governance at ACCA says, ‘This is a much-anticipated announcement following an extensive consultation, and it presents a positive development for the future. Their advice brings certainty to the various standard setting Boards responsible for this important work, and it also provides clarity about the future roles of the Public Interest Oversight Board (PIOB), and the International Federation of Accountants.

‘These recommendations will reinforce stakeholder confidence in a technical and expert global system that defines accountancy standards and ethics, with the aim of instilling trust in business and the public sector.’

The enhancements defined in the Monitoring Group’s paper maintain many of the strengths of the existing system, but ACCA believes that the new arrangements should further improve the independence of the International Audit and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA), with recommendations also further clarifying the roles between them and the PIOB. The recommendations will also importantly maintain these Boards’ technical experience and expertise.

Maggie McGhee concludes, ‘The timeline for planning and moving to the new implementation needs to be considered with all parties working as quickly as possible to full implementation to avoid uncertainty. However, we recognise this project needs to be handled carefully in the current economic climate due to Covid-19. We look forward to being part of this necessary change.’