SMO 4: IESBA Code of
Ethics for Professional
Accountants
Successful strategies and actions in
complying with the requirements of SMO 4
- A New Zealand perspective
Gillian Hawkesby FCA
NZ Regulation Leader

© Chartered Accountants Australia and New Zealand 2018
Disclaimer
The information in this document is of a general nature only and is not, and is not intended to be, advice. Before making any decision or
taking any action, you should consult with appropriate accounting, tax, legal or other advisors.
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Agenda
• Background – Regulatory framework in
New Zealand
• Adoption Approach
• Implementation Approach

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Background – Regulatory framework in
New Zealand
• Post formation of CA ANZ, NZICA retains responsibility for regulating NZ
resident members of CA ANZ under the NZICA Act

© Chartered Accountants Australia and New Zealand 2018
Background – Regulatory framework in
New Zealand
• The NZICA Act requires NZICA to always have a
Code of Ethics that governs the professional
conduct of its members and for that Code to be
prescribed by the Board
• Other legislation in NZ requires NZICA to comply
with the membership requirements of IFAC
• The External Reporting Board (XRB) is responsible
for setting accounting, auditing and assurance
standards (including professional and ethical
standards for assurance practitioners) in NZ

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Adoption Approach – Factors influencing the
NZICA Code
• International Code of Ethics issued by
IESBA
• Alignment with XRB (PES 1): Code of
Ethics for Assurance Practitioners
• Alignment with APESB (APES110 –
applicable to CA ANZ members outside
NZ) where practical
• Deviation from IESBA Code limited to
situations where compelling reason to do
so
• IESBA as a minimum – can only clarify
and/or toughen
• If multiple Codes apply in a jurisdiction,
consistency wherever possible is critical for
successful implementation

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Adoption Approach –
Circumstances where the Code might deviate from the international
standards
• The equivalent international standard does not reflect ,or is not consistent with:
• NZ regulatory arrangements; or
• Practices considered appropriate for members (including the use of
terminology); and
• The equivalent international standard could be modified to result in a standard
that:
• Promotes significant improvement in the NZ or member environments; and
• Does not conflict with, or result in lesser requirements than, the equivalent
international standard; and
• The relevant benefits of making a change outweigh the costs.
• Consideration of challenges encountered by the disciplinary bodies in enforcing
the Code may be taken into account
• NZ Code contains strengthened Conflict of Interest provisions following this
approach

© Chartered Accountants Australia and New Zealand 2018
Adoption process – Approval process
1. Draft Code prepared and approved by Board for release
to members for consultation. Any deviations proposed
from the IESBA Code must meet “compelling reason”
test
2. Extensive communication and awareness raising
campaigns to inform members of proposed changes and
invite submissions
3. Submissions considered, amendments made (if
appropriate) and Code approved by Board
4. Code tabled in Parliament for approval
5. On approval, Code made publicly available
Note: IFAC approval obtained prior to release of draft and final versions of the Code

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Implementation Approach –
bringing the Code to life
• Significant communication and awareness raising
programmes designed to inform and educate members
of changes, making use of the website, newsletters, social
media and face to face presentations
• Senior leaders within profession identified to promote
the importance of the Code and raise awareness of
changes
• Education offerings developed that are sector specific,
interactive and use “real life ethical scenarios” relevant
to each sector
• Tools and Resources developed based on member
feedback to support implementation of Code e.g.
conflicts of interest guide, flow charts to help navigate
the Code

© Chartered Accountants Australia and New Zealand 2018
Implementation Approach –
bringing the Code to life
• Education offerings under constant review to ensure they
remain current in the overall environment e.g. training
developed to address ethical scenarios arising from
CoVid-19
• Publication of disciplinary findings to educate members
on application and interpretation of Code and the
standards expected of members
• Mandating a CPD requirement that all CA ANZ members
must undertake a minimum of 2 hours of ethics
training each triennium (this requirement recognises the
importance of ethics to the profession and helps to
ensure that members keep up to date with the Code)

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Q & A