A draft of new principles detailing how auditors and other professional chartered accountants are to deal with inducements, such as gifts from clients, is expected in August. The draft of the new inducement standards, from the International Ethics Standards Board for Accountants (IESBA), would impose stricter principles on gifts and hospitality, said Michael Dorfan, chairman of the South African Institute of Chartered Accountants’ (SAICA’s) ethics committee. IESBA is a standard-setting board of the International Federation of Accountants, of which SAICA is a member. The ruling standard says chartered accountants should refuse gifts when they threaten independence, objectivity or integrity. Under the new draft, the acceptance of any gift would be subject to an "intent test" and would be prohibited even if there was only a perception that it could improperly influence the behaviour of the recipient, Dorfan said. The independence of auditors has been thrust into the spotlight after lea...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now