Welcome to Professionalism

Issue 51

In this issue we provide updates on APESB's activities and technical projects for
July to September 2026.

 New Standard on Conformity with Sustainability Reporting Standards

On 10 September 2026, APESB issued the new standard APES 206 Conformity with Sustainability Reporting Standards (APES 206).

APES 206 addresses the professional obligations associated with reporting sustainability information, including information required under the new suite of Australian Sustainability Reporting Standards (ASRS) issued by the Australian Accounting Standards Board (AASB).

APES 206 is effective from 1 January 2027, with earlier adoption permitted.

Read the Technical Alert, the Standard and the Basis for Conclusions.

Exposure Draft Open for Comment

Proposed revised APES GN 40 Ethical Conflicts in the Workplace – Considerations for Members in Business

APESB issued an Exposure Draft Proposed revised APES GN 40 Ethical Conflicts in the Workplace – Considerations for Members in Business (ED 02/26) on 26 August 2026.

The proposed key changes include additional guidance for Members in Business on the preparation and presentation of sustainability information, tax planning activities, and using the work of an external expert, as well as updates to bring APES GN 40 into alignment with APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code).

APESB is seeking stakeholder feedback on ED 02/26 by 20 October 2026.

Read the Technical Alert and the Exposure Draft.

 APESB Due Process and Working Procedures

On 30 September 2026, APESB issued the revised Due process and working procedures for the development and review of APESB pronouncements (Due Process Document).

The Due Process Document describes the processes and procedures that APESB follows when developing and reviewing professional and ethical standards. It outlines how stakeholders can participate in and contribute to APESB's standard setting process.

Key revisions include clarifications on the enforceability of APESB pronouncements for sustainability assurance engagements, the process for post-implementation reviews and the consideration of public interest in project proposals.

Read the Technical Alert and the Due Process Document.

APESB September 2026 Board Meeting

APESB held its quarterly Board meeting in Adelaide on 4 September 2026. 

The Board received updates on APESB's submissions to Treasury's review of whistleblowing and its options paper on the regulation of firms, and an update on the Parliamentary Joint Committee's oversight of ASIC in relation to the KPMG whistleblower matter.

Key decisions made at the meeting included:

• the approval of the new standard APES 206 Conformity with Sustainability Reporting Standards;
• the approval of a project for a narrow scope amendment to APES 210 Conformity with Auditing and Assurance Standards addressing independence considerations for sustainability assurance engagements;
• that a broader structural review of APESB's conformity standards be included in APESB's 2029 work plan; 
• the approval of a revised APESB Due Process Document; 
• that no amendments are required to APES 320 Quality Management for Firms that provide Non-Assurance Services and APES 325 Risk Management for Firms as a result of the post-implementation reviews performed; and
• that further research be undertaken on AML/CTF and privacy laws reforms in relation to their impact on APESB pronouncements.

The Board also considered updates on current APESB projects, including the development of draft guidance on AI for forensic accounting and valuation services.

An overview of the key decisions is available in two formats: watch the video or read the highlights document.

APESB Submissions

Treasury’s review of tax and corporate whistleblowing in Australia

On 29 July 2026, APESB made a submission to Treasury’s Consultation Paper on the review of tax and corporate whistleblowing in Australia. APESB supported the Government’s initiative and believes that the review presents an important opportunity to enhance, align and simplify Australia's tax and corporate whistleblowing regimes, while providing better support for whistleblowers.

APESB also encouraged the Government to consider establishing an independent body to receive whistleblower disclosures and for that body to refer them to the regulator best placed to act.

Treasury’s consultation on the regulation of accounting, auditing and consulting firms in Australia

On 12 August 2026, APESB made a submission to Treasury’s Options Paper on the regulation of accounting, auditing and consulting firms in Australia. APESB welcomed the consultation, acknowledging that recent ethical failures have damaged public trust and demonstrated that current arrangements need improvement.

APESB is of the view that recent failures reflect individuals not adhering to existing standards rather than gaps in the standards themselves. Accordingly, a key area for policy consideration is whether relevant monitoring and enforcement bodies have the powers, resources and legislative support necessary to enforce the existing professional and ethical standards effectively. APESB also identified several measures and actions for Treasury’s consideration, including: 

• reforms should build upon, rather than duplicate or displace, Australia’s existing co regulatory framework; 
• Australian accounting, auditing and ethics standards to stay aligned with the international principles-based standards used in more than 130 countries; 
• reforms target large firms specifically, to avoid unintended impacts on smaller firms;
• APES 325 already addresses firm governance, and that any new obligations should build on it, informed by IESBA's Firm Culture and Governance project; 
• if considering some form of separation, then the UK's operational separation model be considered rather than pursuing structural separation; and
• supportive of the option of the ten-year audit tendering mechanism, to work alongside existing long-association requirements in the Code and corporate governance mechanisms of clients to review the performance of the auditor, as being more proportionate to mandatory audit firm rotation.

International Developments

IESBA Board Meeting

The IESBA held a Board meeting on 14-18 September 2026 in Madrid, Spain. APESB CEO, Mr Channa Wijesinghe attended the meeting in his capacity as the IESBA's Vice Chair.

 Key decisions made and matters discussed at the meeting included: 

• The IESBA progressed its Firm Culture and Governance (FCG) project, which proposes a new requirement for accounting firms, with an Exposure Draft expected to be approved at the December Board meeting.
• Technology remains a strategic priority. The IESBA considered both the ethics implications of AI developments and the independence implications of emerging alliances between audit firms and technology providers.
• The IESBA approved two new Adoption and Implementation (A&I) initiatives. The first will consider measures in 2027 to simplify access to and use of the Code. The second will develop further guidance and awareness-raising for CFOs.

Click here to watch the IESBA Chair outlining the Board Meeting Highlights.

The next IESBA Board meeting will be held on 7-10 December 2026 in New York.

Recent APESB Presentations

CPA Australia's Forensic & Financial Investigations Discussion Group

On 30 September, APESB CEO Channa Wijesinghe presented to the CPA Australia’s Forensic & Financial Investigations Discussion Group. The presentation covered recent updates to the Code and the ethical considerations that arise when professional accountants use AI in their work. APESB’s draft guidance and case studies on the use of AI in forensic accounting and valuation services was also presented and discussed with the group. The presentation also outlined APESB's responses to Treasury’s consultations relating to the regulation of the accounting profession and proposed whistleblowing amendments. Read the slides here.

Project to revise the Independence Guide

APESB is leading a project in collaboration with CA ANZ, CPA Australia and IPA to revise and develop the 6^th Edition of the Independence Guide. The project will involve reviewing the existing guide (5^th ed. 2020), including relevant changes to laws, regulations and professional standards, and adding a new section on independence for sustainability assurance engagements.

APESB has commenced the tender process for a consultant to assist in the revision process, and is planning to commence stakeholder engagement on the proposed revisions from November 2026.

Interested stakeholders can follow the progress of this project on the Independence Guide project page.

APESB relocates to its new office

APESB has now relocated to Suite 2, Level 3, 99 Queen Street, Melbourne. The new office provides a contemporary workspace to support APESB's operations.