The International Ethics Standards Board for Accountants (IESBA) has issued a new ethics code for accounting professionals to be implemented from December 31, 2023.
All accounting and auditing professionals in the UAE are required to adhere to the new Code of Ethics introduced by the International Ethics Standards Board of Accountants. This code, set to be implemented in the UAE by December 31, 2023, was discussed at a conference organized by the Dubai Chapter of the Institute of Chartered Accountants of India.
The conference, attended by over 400 active members, emphasized the importance of compliance and licensing, drawing parallels with the iconic Bollywood movie Deewar released in 1975.
The International Ethics Standards Board of Accountants (IESBA) regularly updates the global Code of Ethics for accounting and auditing professionals. The recent announcement by the Abu Dhabi Accountability Authority approving the IESBA Code of Ethics reflects the UAE’s commitment to adopting high ethical standards.
According to CA Harikishan Rankawat, Chairman of ICAI Dubai Chapter, accountants and auditors in the UAE must adopt this Code of Ethics starting from December 31. This implementation will ensure the highest level of compliance, positioning the UAE as a leader in ethical practices among other countries.
The Code of Ethics highlights the importance of audit quality, transparency, integrity, objectivity, accountability, due diligence, confidentiality, and professional conduct. It also emphasizes the preservation of non-conflict of interest and objectivity when preparing Financial Statements in line with international standards and procedures.
The ICAI Dubai Chapter’s Ethical Standards Board has recently revised the 12th edition of the Code of Ethics, effective from July 1, 2020, consisting of three volumes. The fourth edition was issued in February 2021 by the Ethical Standards Board, under the guidance of CA Atul Kumar Gupta, the Former President of ICAI. This Code of Ethics serves as a guide for members of the Institute, helping them navigate ethical dilemmas.
The ICAI represents a substantial number of accounting and auditing professionals globally, with over 351,232 qualified chartered accountants and 200,000 Article Assistants based in India and abroad. Additionally, approximately 750,000 students are enrolled in the chartered accountancy courses offered by the ICAI.
With its presence in 47 countries, including 45 chapters and 32 representative offices across 77 global cities, the ICAI is a prominent regulating body of professionals. The ICAI Dubai Chapter, celebrating its 40th anniversary, is the largest overseas chapter of the ICAI, boasting over 8,000 active Indian chartered accountants in the UAE’s private sector, particularly concentrated in Dubai, where they manage 1,500 large businesses.
During the conference, CA. Sanjiv K Chaudhary, Partner and Leader – Strategic Accounts at BDO India LLP and a distinguished IESBA Member, provided insights into the IESBA Code of Ethics.
He emphasized the need for formal codes and legal requirements despite ethics being innate. He mentioned that the Code of Ethics evolves over time to accommodate changing business practices, new products, processes, and systems. As the expectations of the public change, professionals must also consider the ethical aspects, even if an action is legally correct.
CA. Sanjiv K Chaudhary further highlighted the extensive responsibilities of accounting professionals, emphasizing the need to report any issues beyond their official scope of work, including non-financial aspects of business. Compliance with the IESBA Code of Ethics is crucial in maintaining public trust and serving the public interest.
The IESBA Code of Ethics is applicable to all public accountants and is based on internationally accepted principles implemented in 130 jurisdictions worldwide. The conference also shed light on the significance of addressing Anti-Money Laundering, a major financial crime that chartered accountants frequently encounter.
The ICAI (Dubai) Chapter, established in 1982, is the largest and most active chapter among the 45 overseas chapters of ICAI. With over 3,100 members representing more than 1,550 multinational and other companies, it has achieved remarkable growth in membership in recent years.
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