ABU DHABI, 13th March, 2023 (WAM) — The Abu Dhabi Accountability Authority (ADAA) has announced the adoption of “Code of Ethics” based on the standards issued by the International Ethics Standards Board for Accountants (IESBA) during Abu Dhabi’s hosting of its annual board meeting for the first time in the Middle East, currently being held from 13th to 17th March.
The adoption of the Code will be applicable to accountants and auditors of financial statements from 31st December onwards. The 2022 Handbook of the International Code of Ethics for Professional Accountants will be fully adopted including all of its provisions and additional requirements.
Wael Abdul Qader, Acting Head of Monitoring and Auditing Sector at ADAA, said, “We announce the full adoption of the standards set by the International Ethics Standards Board for Accountants. It will be applied by subject entities’ Statutory Auditors to elevate audit quality and uphold the principles of transparency, integrity and accountability.”
Based on the crucial importance of the financial report for professionals and decision makers in the emirate, the international standards adheres to the rules of ethical behavior and the basic principles of related concepts, which include integrity, objectivity, efficiency, professionalism, due diligence, confidentiality and professional behaviours. It also emphasises on the need for accountants and auditors to adhere to non-conflict of interests and independency to prepare data and present it in a transparent manner that are in line with international standards and practices.
The Code of Ethics includes additional clarifications of accounting standards to determine the subject entities to which the requirements of public interest entities apply. The most important of which is strengthening the independence of the auditor of the accounts of the subject entities, following the role and responsibility of the Authority to improve the quality of audit work in the emirate.
The Code of Ethics will serve as a guide for honest accounting and auditing to avoid misconduct associated with preparing financial reports, responding to non-compliance with laws and regulations, accepting gifts, as well as the independence of auditing and auditing processes, and independence of auditing.
In line with the “Year of Sustainability”, the annual IESBA board meeting is ongoing at the Energy Business Centre in Abu Dhabi under the slogan “Building the Ethical Foundations of Sustainability”, with the participation of more than 55 international participants from experts and specialists.
The event is one of the largest in the field of accounting and serves as a platform for members to address its numerous projects and discussions as well as contributes to the decision-making process in issues related to updating international standards in auditing and accounting. The board meeting also addresses decisions based on other accounting subjects and discusses projects put forward by members.
The International Ethics Standards Board for Accountants is the globally recognised independent body that is the vanguard of ethics standard-setting for professional accountants. Its strict IESBA Code of Ethics includes a vigorous set of standards, including requirements of auditor independence, with the objective of maintaining consistency in standards and methodologies in the preparation and confidential aspect of reporting around the world.