A strong and well-governed professional accountancy organization (PAO) produces and sustains a strong accountancy profession that is able to serve the public interest and contribute to economic stability and growth. A successful PAO gains much of its strength from the sense of identity, benefits, and rights that members derive from membership; and from the contributions that individual members and firms make to the PAO in recognition of its public interest perspective.

This third edition of the guide features enhancements to the two sample manuals, as well as other refinements for clarity and consistency with International Standard on Quality Control (ISQC) 1. The guide contains the requirements set out in ISQC 1 in addition to implementation guidance, including discussion material and an integrated case study that can be used as the basis for education and training.

• Analysis explains linkages and key differences between IESBA’s FCG viewpoints and ISQM 1.
• Highlights their mutually supportive nature and key differences in their objectives, scope, output, and focus.
• Developed in close coordination with the IAASB, responding to calls from stakeholders.

The International Ethics Standards Board for Accountants (IESBA) has released the complete analysis of the linkages between the International Standard on Quality Management (ISQM) 1 and the IESBA’s Firm Culture and Governance (FCG) viewpoints.

Developed in close coordination with the International Auditing and Assurance Standards Board (IAASB), the paper responds to calls from stakeholders as well as IESBA and IAASB members to recognize and clarify the linkages between the two.

The analysis explains, at a high level, how the FCG viewpoints and ISQM 1 could interact, demonstrating their mutually supportive nature while recognizing the clear distinctions in their objectives, scope, output, and level of specificity as regards firm culture and governance:

• ISQM 1 requires firms that perform engagements within the scope of IAASB’s engagement standards to establish a system of quality management to enable the consistent performance of quality engagements and issuance of appropriate reports. It requires that the firm demonstrates a commitment to quality through a culture that exists throughout the firm, which recognizes and reinforces, among others, the importance of professional ethics, values, and attitudes.
• The IESBA FCG viewpoints focus on how firms can develop a strong ethical culture by embedding and prioritizing ethical values within the whole firm through eight elements of firm culture and governance.

While this paper seeks to explain the linkages between the FCG viewpoints and ISQM 1, it does not purport to be a like-for-like assessment. ISQM 1 is a standard already in effect. By contrast, the IESBA FCG viewpoints represent high-level, principles-based perspectives on key elements of firm culture and governance developed to support stakeholder engagement on advancing the development of a global FCG framework. The FCG viewpoints do not constitute a standard.

The IESBA will continue outreach and consultation with stakeholders in the coming months, with a view to informing a Board decision on the approach to the development, structure, and authority of such a FCG framework.

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting high-quality, international ethics (including independence) standards as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board (IAASB), the IESBA is part of the International Foundation for Ethics and Audit (IFEA). The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.

Contact Information:

Rui Peres Jorge 
Director, Strategy and Communications 
International Ethics Standards Board for Accountants (IESBA) 
ruiperesjorge@ethicsboard.org | Direct: +351 966-301-383

Zsolt Bobis 
Lead, Communications 
International Ethics Standards Board for Accountants (IESBA) 
zsoltbobis@ethicsboard.org

The International Federation of Accountants (IFAC) today announced revisions to its Statements of Membership Obligations (SMOs) 1–7, effective April 1, 2026. The SMOs set global benchmarks for IFAC members to support the adoption and implementation of international standards, as well as robust quality assurance and investigation and disciplinary systems.

The revisions introduce targeted refinements to reflect developments in quality management, professional education pathways, and expanded corporate and public sector reporting, and to support the continued modernization of the IFAC Member Compliance Program. The revisions follow a rigorous global due process, including an Exposure Draft and extensive public consultation in 2025, reinforcing the SMOs’ global credibility and authority.

Key revisions include:

• Quality Management: Alignment with international quality management standards to strengthen firm-level systems.
• Education: Encouragement of more flexible pathways into the profession, consistent with international education standards.
• Reporting Standards: Integration of expanded public sector reporting standards issued by the International Public Sector Accounting Standards Board and expanded corporate reporting standards issued by the International Sustainability Standards Board.

“These revisions help IFAC members continue to lead with integrity and excellence, ensuring their organizations remain resilient, innovative, and trusted worldwide. By following the SMOs, our members strengthen the adoption of international standards, reinforce quality and public interest systems, and demonstrate the collective strength of a truly global accountancy profession,” said Lee White, IFAC Chief Executive Officer.

The revisions were approved by the IFAC Board in February 2026. To support implementation, IFAC has published a summary table of revisions and a frequently asked questions (FAQ) document to help members quickly understand the changes. IFAC will also host member webinars in May.

About IFAC
IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality and proudly carry their membership as a badge of international recognition.

IFAC and its members work together with the Forum of Firms and other key stakeholders to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.

The Statements of Membership Obligations (SMOs) set global benchmarks for IFAC members to support the adoption and implementation of international standards, as well as robust quality assurance and investigation and disciplinary systems. The 2026 revisions are effective April 1, 2026.