Welcome to Professionalism

Issue 47

In this issue we provide updates on APESB's activities and technical projects for
July to September 2025.

APESB welcomes a new APESB Director

In August 2025, we welcomed Ms Amanda McIntyre as APESB's newest Board member. 

Amanda is the Canberra Market Managing Partner for O'Connor Marsden (OCM), a Fellow of Chartered Accountants Australia and New Zealand (CA ANZ) and a member of the CA ANZ ACT Regional Council.

Amanda has previously been a partner at EY (2023-2025) and PwC (2017-2023) and the CFO of the Department of Prime Minister and Cabinet (2012-2016). Amanda's experience with large firms and the public sector will provide valuable input to APESB's future development of professional and ethical standards. 

Australian Ethics and Independence Standards for    Sustainability Assurance and Reporting

On 8 July 2025, APESB released a landmark Amending Standard to APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code), setting out new ethical and independence requirements for sustainability reporting and assurance in Australia.

These new standards provide clear and robust ethical principles and guidance for professional accountants engaged in sustainability reporting and assurance in Australia, including using the work of external experts. They support Australia’s mandatory climate-related financial disclosures and sustainability reporting, which became effective for Group 1 entities from 1 January 2025.

The standards are based on the IESBA’s global ethics and independence standards on Sustainability and Use of External Experts released in January 2025.

The new requirements will take effect from 1 January 2026, with a later implementation date of 1 July 2028 for provisions related to the value chain components. Early adoption is encouraged, with transitional relief options available to support implementation.

Read the Amending Standard, the Basis for Conclusions and the Media Release. 

Statement from the IESBA Chair on Australia's Adoption of IESBA's Global Ethics Sustainability Standards

In July 2025, the IESBA Chair Gabriela Figueiredo Dias welcomed the announcement by APESB of the adoption of the IESBA’s Global Ethics Sustainability Standards. With this move, Australia became the first jurisdiction to formally embed ethics and independence standards for sustainability reporting and assurance into its national framework.

Further details are available in the IESBA's Media Release.

New Compiled Code of Ethics and prohibitions guidance

At the APESB Board Meeting on 11 September 2025, the Board approved the new compiled APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (Compiled Code). The Compiled Code incorporates the restructured Code and eleven Amending Standards issued up to the end of July 2025, including the new Sustainability and External Experts Amending Standard.

The Board considered and were supportive in principle of an updated guidance document APES 110 Prohibitions for Audit, Review and Sustainability Assurance Engagements. The updated guidance document will be approved out of session, after considering feedback from stakeholders.

APESB expects to issue the new Compiled Code incorporating PDF enhanced features, and the updated prohibitions document in October 2025. 

Read the Draft Compiled Code of Ethics (Marked up).

APESB September 2025 Board Meeting

APESB held its quarterly Board meeting on 11 September 2025.

In addition to approving the new Compiled Code and reviewing an updated prohibitions document (as noted above), the Board approved two project proposals to: 

• review APES GN 40 Ethical Conflicts in the Workplace - Considerations for Members in Business; and
• develop a new professional and ethical standard addressing conformity with Sustainability Reporting Standards. 

The Board noted that the changes to the Code for sustainability will have a significant impact on Members. As such, the Bard approved the review of APESB’s guidance documents relating to Audit Partner rotation and Whistleblowing and Confidentiality. 

In addition, the Board received updates on the proposed review of 17 pronouncements from the 200 and the 300 series of APESB's suite of pronouncements. The comprehensive review will assess the impact of sustainability reporting and assurance, and technology, such as AI. It will incorporate stakeholder engagement to determine the practical impact of these developments. The review will also consider revisions to align with the sustainability related changes to the Code.

In a video clip posted on LinkedIn, Mr Channa Wijesinghe, APESB’s CEO, provides an overview of key decisions made and projects discussed at this meeting, or you can read the highlights of the September 2025 Board meeting here.

International Developments

IESBA Ethics and Independence Conference 2025

On 15 September, the IESBA held its inaugural Ethics and Independence Conference 2025 in Lisbon, Portugal. 

The IESBA conference was attended by over 1,000 registered participants from around 100 jurisdictions, of which 250 from 40+ jurisdictions attending in person. It brought together leading voices from the accounting profession, business, regulation, capital markets, government and standard setting to address how ethics can reinforce resilience and public trust in a rapidly evolving financial landscape.

Speaking on the panel "Ethical Culture and Governance: Reinforcing Resilience and Public Trust in Accounting Firms", APESB CEO and Vice Chair of the IESBA, Mr Channa Wijesinghe, has encouraged accounting and audit firms to move beyond a compliance mindset and embrace ethical culture as a strategic advantage during a keynote panel at the IESBA conference.

During the conference, IESBA Members and Staff were honoured to be received at the Palácio das Necessidades by Portugal’s Minister of Foreign Affairs, Paulo Rangel.

Read more in the APESB's Media Release.  

IESBA September 2025 Board Meeting

The IESBA held a Board meeting in person in Lisbon, Portugal on 16-19 September 2025. APESB CEO, Mr Channa Wijesinghe attended the meeting in his capacity as the IESBA's Vice Chair.

During the meeting, the Board received updates on its Firm Culture and Governance project, a project proposal on the evolving role of CFOs in upholding ethical leadership, review of responses to the Consultation Paper on Collective Investment Vehicles (CIVs) and Pension Funds, the Sustainability adoption and implementation efforts globally, and exploring the intersection of Technology and Ethics. 

The Board also had a preliminary discussion on the development process for its Strategy and Workplan 2028-2031 and considered the approach for a post-implementation review of the NOCLAR (Non-compliance with Laws and Regulations) standard and the Restructured Code to further guide the profession in the years ahead. Click here to read the Board Meeting Papers.

The next IESBA Board meeting will be held on 8-12 December 2025 in New York.

Sustainability-related Developments

IESBA and IAASB Establish Expert Groups to Support Global Implementation of Sustainability Standards

In July 2025, the IESBA and IAASB established two expert implementation groups:  IESSA Implementation Monitoring Advisory Group (IIMAG) and ISSA 5000 Technical Implementation Contact Group (TICG), which will play important roles in supporting the effective implementation and application of the Boards’ global sustainability standards.

Further details are available in the IESBA and IAASB joint's Media Release.

IESBA Staff Publications for IESSA and Use of External Experts

In July and September 2025, the IESBA Staff released new publications to support adoption and implementation of its ethics standard on the IESSA and Using the Work of an External Experts:

• Key Differences Between IESSA and Parts 1 to 4A of the Code outline the main differences between the IESSA and the corresponding provisions of the IESBA Code applicable to audits of financial statements. 
• List of Prohibitions for PIEs in IESSA summarises a list of specific prohibitions applicable to sustainability assurance engagements of PIEs.
• Questions and Answers on Using the Work of External Expert provides answers to common questions relevant to all professional accountants, whether in business or in public practice, and sustainability assurance practitioners. 
• Proportionality of the IESSA highlights key aspects of the IESSA that illustrate its proportionality, while the IESSA also provides a robust global ethics and independence baseline for sustainability assurance engagements. 

IESBA released Explainers videos

In July 2025, the IESBA released three short explainer videos to support the effective implementation of the IESSA and promote awareness of the importance of ethics in sustainability-related services:

• Introduction to the Global Ethics Sustainability Standards illustrates how IESSA serve as a critical guide for both reporting and assurance professionals in identifying and responding to potential threats to ethics and independence.
• Ethics in Sustainability Reporting demonstrates how the IESBA Code equips reporting professionals to uphold integrity, objectivity and transparency amid increasing demands in the sustainability reporting landscape and to avoid greenwashing.
• IESSA and Ethics in Sustainability Assurance introduces the IESSA and illustrates how these standards guide assurance practitioners in identifying and addressing threats to independence, thereby reinforcing trust in assurance over sustainability-related disclosures.

Recent APESB Submission

IESBA's Consultation Paper on Collective Investment Vehicles (CIVs) and Pension Funds – Auditor Independence

On 8 July 2025, APESB made a submission to the IESBA’s Consultation Paper Collective Investment Vehicles and Pension Funds – Auditor Independence. APESB was supportive of the IESBA undertaking the consultation and considering whether revisions to the IESBA Code are warranted to address auditor independence in these circumstances.

APESB noted that Australia has established auditor independence considerations for Managed Investment Schemes (MISs) and superannuation funds. However, it is unclear whether separate jurisdictional legislation establishes a consistent approach to auditor independence for these entities. Therefore, APESB supports the creation of a definition of connected party and application material in the Code to clarify how connected parties are included in independence considerations for the auditors of CIVs and Pension Funds.

Recent APESB Presentations

CA ANZ Public Practitioners Breakfast

On 19 August 2025, APESB CEO Mr Channa Wijesinghe presented at the CA ANZ Public Practitioners Breakfast on the topic of Latest Developments in the Code of Ethics Impacting Accounting Practices, including Artificial Intelligence. The presentation covered the Technology-related revisions, Artificial Intelligence, Tax Planning, Sustainability, key standards in the APES 300 series, as well as the IESBA’s current project on Firm Culture and Governance. Read the slides here.

Sustainability Ethics and Independence Standards - for ASIC Staff

On 11 August 2025, APESB CEO Mr Channa Wijesinghe delivered a presentation on Sustainability Ethics and Independence Standards to the ASIC Sustainability, Financial Reporting and Audit Regulation & Supervision Team. The presentation focused on the new Sustainability Ethics and Independence Standards, covering its scope and characteristics, group sustainability assurance engagement, related NAS provisions, and use of external experts. The presentation also provided an overview of the APESB’s role and mandate and the IESBA Code. Read the slides here.