On 26 March, ICAEW’s Council approved the 2025 edition of the Code of Ethics, bringing it into alignment with the International Ethics Standards Board for Accountants (IESBA) and incorporating key changes.

Gareth Brett, ICAEW Interim Director of Trust and Ethics, said: “These updates include significant revisions across several key areas including technology, role and mindset, and professional behaviour.

“We encourage members to familiarise themselves with these important changes before they take effect at the beginning of July.”

ICAEW has published a range of supporting guidance ahead of the Code being published and is hosting a free webinar on 4 April to help practitioners understand the changes and what they mean in practice. ICAEW’s Ethics CPD Course is also being updated to provide an overview of the changes.

Professional behaviour

The section of the Code of Ethics on professional behaviour has been updated to better reflect how ICAEW members should interact with clients, colleagues and the wider public.

Section 115 of the Code requires members to comply with relevant laws and regulations, and to avoid any conduct that they know or should know might discredit the profession.

The 2025 edition includes an updated 115.1 A2 that now includes a “reasonable and informed third-party test” as part of the expectations of a member’s conduct. This means that a member is measured by the standards of somebody who is reasonable and understands the relevant context of a situation.

Role and mindset

The role and mindset provisions highlight the importance of the profession’s duty to act in accordance with the public interest and re-enforce the need for all professional accountants to:

• have the strength of character to act appropriately in challenging situations;
• have an inquiring mind;
• be mindful of bias; and
• exercise professional scepticism when undertaking audit, assurance and review work.  

Find out more.

Technology

The new technology provisions highlight the potential risks that new technologies pose for the profession. They stress the fundamental principles of professional competence and due care, with supporting application material, and confidentiality, including:

• a new definition of “confidential information”, and 
• a duty to take active steps to preserve such information for the entirety of the data governance lifecycle).

They also clarify independence requirements and the circumstances in which firms and network firms may not provide a technology-related non-assurance service to an audit or assurance client.

Find out more

Part 4A – independence for audit and review engagements

The changes introduced by IESBA also include revisions relating to international audit independence standards which are set out in Part 4A of the ICAEW Code. However, professional accountants undertaking audits in accordance with ISAs (UK) and other public interest engagements in the UK will be required to comply with the FRC Ethical Standard. 

• Download the Code