International Auditing and Assurance Standards Board and International Ethics Standards Board Gain Independence from International Federation of Accountants

The Korean Institute of Certified Public Accountants announced on the 3rd that the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) have been transferred from the International Federation of Accountants (IFAC) to the International Foundation for Ethics and Auditing (IFEA).

The International Foundation for Ethics and Auditing is composed of three member organizations: the Monitoring Group (MG), the Public Interest Oversight Board (PIOB), and the International Federation of Accountants. It performs supervisory duties through a board of directors consisting of six members, including four members from the Public Interest Oversight Board and two representatives from the International Federation of Accountants.

Previously, the appointment authority for the members of the two standard-setting boards exercised by the International Federation of Accountants was transferred to the Public Interest Oversight Board last year. The proportion of auditors among the members of each standard-setting board was reduced from 9 out of 18 members to 5 out of 16 members. This is part of a system reform led by the Monitoring Group since 2020 to further strengthen the independence of the standard-setting boards.

Kim Young-sik, President of the Korean Institute of Certified Public Accountants, stated, "This timely measure comes at a time when the role of auditors is expanding, including ESG (Environmental, Social, and Governance) certification, and independence and expertise are being further emphasized. We will continue to make efforts to ensure that Korea's circumstances are reflected in the discussions on international auditing standards going forward."

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