The International Ethics Standards Board for Accountants (IESBA) is looking into how changes in firm ownership might affect independence and ethics in the profession. The board recently said in a news release that it will gather information on alternative practice structures, like private equity investment in accounting firms, to help decide if a new standard-setting project is needed.  

According to the Journal of Accountancy, this move follows recent developments in the US, where the AICPA’s Professional Ethics Executive Committee (PEEC) approved an exposure draft on similar topics. The draft, called Proposed Revisions Related to Alternative Practice Structures, outlines situations that could threaten independence, especially as outside investors become more involved in firm operations. It also offers a framework for assessing risks and finding safeguards when needed. The draft is open for public comment until April 30.  

IESBA said its review will look at the wider ethical and independence issues raised by these models, as more private capital changes the accounting field worldwide. The board has not decided whether to create new standards yet, but collecting information now could lead to more guidance in the future.  

The board is expected to share an update on its findings at its June meeting.