New International Foundation for Ethics and Audits Strengthens Independence of the Standard-Setting System

In a press release dated March 27, 2023, the Board of Trustees of the International Foundation for Ethics and Audit (IFEA, or the Foundation) celebrates the launch of the Foundation, which implements a key recommendation contemplated in the Monitoring Group’s July 2020 Recommendations, Strengthening the International Audit and Ethics Standard-Setting System.

According to the press release, the objective in establishing the Foundation is to move the International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) to a new entity that is independent of the International Federation of Accountants (IFAC).



Under the new structure, IESBA Chair Ms. Gabriela Figueiredo Dias and IAASB Chair Mr. Tom Seidenstein serve as Co-CEOs of the Foundation. The Public Interest Oversight Board (PIOB) continues its role as an independent oversight board, supporting the public interest responsiveness of the international standards and the effective delivery of the boards’ strategies.

“Establishing the Foundation as an independent legal entity to house the IESBA and IAASB, which were previously within the IFAC structure, is an important step in strengthening the independence of the international standard-setting system for ethics, audit and assurance,” said Robert Buchanan, Chair Trustee of the Foundation.

“We are confident that the revised structure – with IFEA as the home of the standard-setting boards governed by a board of trustees that includes both PIOB and IFAC appointed trustees – is an important mechanism created by the Monitoring Group to reform with the profession and simultaneously enhance the independence of the standard-setting boards,” said Linda de Beer, Chair of the PIOB. “This, in conjunction with an independent nominations process housed within the PIOB through the PIOB Standard Setting Boards Nominations Committee, will continue to enhance the trust and confidence in the standard-setting process.”

Paul Munter, Co-Chair of the Monitoring Group, added that “the objectives of the Monitoring Group’s recommendations included achieving an independent and inclusive, multi-stakeholder standard-setting system, and fostering the development of timely, high-quality standards that are responsive to the rapidly changing environment while still being responsive to the public interest. We are confident that the new structure advances both objectives. We are pleased the recommended reforms are on track for full implementation through diligent, collective efforts, and the focus is now on the implementation of the resource and costing plans.”

Accompanying today’s announcement is the launch of the Foundation’s website at www.ethicsandaudit.org or see New International Foundation for Ethics and Audit Strengthens Independence of the Standard-Setting System | IFEA.