05 January 2012

The International Ethics Standard Board for Accountants (IESBA) released the Proposed Changes to the IFAC Code of Ethics for Professional Accountants- Addressing Conflicts of Interest on 20 December 2011 for public comment. As the IRBA Code of Professional Conduct for Registered Auditors adopted Parts A and B of the IFAC Code, this proposed change to the IFAC Code, may be considered by CFAE for possible amendments to the IRBA Code that could affect registered auditors.

The proposed changes to the IESBA Code intend to provide additional guidance to professional accountants in business and in public practice concerning conflicts of interest and provide more comprehensive guidance in identifying, evaluating and managing conflicts of interest.

Ken Dakdduk, IESBA Chairman, noted that: "The proposed changes will provide more specific requirements and guidance for a professional accountant in applying the conceptual framework when identifying, evaluating, and managing conflicts of interest. This includes a clearer description of what is meant under the IESBA Code by the term 'conflict of interest.' The changes should assist professional accountants in early identification of a potential conflict of interest, and prompt accountants to evaluate their ability to be objective in that situation and meet the other fundamental principles in the IESBA Code. From the perspective of the public, timely identification of potential conflicts of interest can provide affected parties with more time to engage an alternative service provider."

How to Comment

Accordingly, we request any comments be submitted to the IRBA for consideration in our response to the IESBA by 23 March 2012 (i.e. 1 week prior to the IESBA comment date deadline of 31 March 2012). Comments should be submitted by email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , in word format.

The proposed changes to the Code of Ethics are available in PDF and may be downloaded from the IRBA website. Should you have any queries or experience any technical difficulties in downloading the documents please do not hesitate to contact the Standards Department at +27(0)87 940 8800 or send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Alternatively, comments may be submitted directly to the IESBA through the IFAC website and use the "Submit a Comment" link on the Exposure Drafts and Consultation Papers. Comments on the exposure draft are requested by 31 March 2012.

If you have any further questions please contact the Director: Standards at 087 940 8871. Should you have any further queries or experience any technical difficulties in downloading the documents please do not hesitate to contact the Standards Department at +27(0)87 940 8800 or send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Sandy van Esch
Director: Standards

Download the document in (Doc | PDF) format.

About the IRBA

The objective of the IRBA is to protect the financial interests of the South African public and international investors in South Africa through the effective and appropriate regulation of audits conducted by registered auditors, in accordance with internationally recognised standards and processes.

The statutory Committee for Auditor Ethics assists the Board to determine what constitutes improper conduct by registered auditors by developing rules and guidelines for professional ethics, including a Code of Professional Conduct for Registered Auditors and Rules Regarding Improper Conduct.