IRBA: Final pronouncement – Ethics Standards for Sustainability Assurance

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IRBA: Final pronouncement – Ethics Standards for Sustainability Assurance

• 09 March 2026
• Auditing and Assurance
• South African Accounting Academy

Summary:
The Independent Regulatory Board for Auditors’ (IRBA Board) has approved the Final Pronouncement: Ethics Standards for Sustainability Assurance (Including Independence Standards) and Other Revisions Relating to Sustainability Assurance and Reporting, Including the Using the Work of an External Expert Standard, and the Related South African Enhancements for prescription and use by registered auditors.

Article:

The Ethics Standards for Sustainability Assurance (Including Independence Standards) introduce a new Part 5 to the IRBA Code of Professional Conduct for Registered Auditors (IRBA Code), establishing a comprehensive framework of ethics and independence requirements for sustainability assurance engagements. The standards are designed to be equivalent to Part 4A of the IRBA Code and apply the same high ethical and independence principles as those required for financial statement audits. The objective is to enhance the quality and credibility of sustainability information, as well as strengthen public and institutional confidence in sustainability reporting and assurance.

South African Enhancements 

In developing local enhancements to Part 5, consideration was given to the applicability of the existing enhancements and the need for additional provisions where registered auditors provide both audit and sustainability assurance services, to ensure consistent ethical requirements across engagements. Focus was placed on improving the clarity and practical application of the new independence provisions relating to value chain components and the use of another practitioner. To promote consistent application, the enhancements provide greater clarity on scoping and transparency requirements. 

The South African enhancements include: 

1. A new application paragraph, 5400.3b A1 SA, to support the application of the scoping criterion in paragraph 5400.3b(a); 
2. An appendix to the Independence Standards for Sustainability Assurance Engagements containing diagrammatic illustrations, to support the implementation of sections 5405 and 5406; and 
3. Two new requirements, R410.31a SA and R5410.31a SA, mandating a separate disclosure of audit and sustainability assurance fees when both services are provided. 

Consequential amendments were also made to extant localisations in sections 321, Second Opinions, and 400, Applying the Conceptual Framework to Independence for Audit and Review Engagements.

Effective Dates 

Ethics Standards for Sustainability Assurance and Related Revisions to the IRBA Code 

• Except for the provisions in sections 5405 and 5406 applicable to assurance work performed at value chain components, Part 5 of the IRBA Code, the consequential and conforming amendments to Parts 1 and 3 of the IRBA Code and the revisions to Definitions (Chapters 1-3 of the International Ethics Standards for Sustainability Assurance (IESSA)) are effective for sustainability assurance engagements for periods beginning on or after 15 December 2026, or as at a specific date on or after 15 December 2026. 
• The sustainability reporting-related revisions to Parts 1 and 3 of the IRBA Code (Chapter 4 of IESSA) are effective as of 15 December 2026.  
• The provisions in sections 5405 and 5406 applicable when assurance work is performed at a value chain component are effective for sustainability assurance engagements on sustainability information for periods beginning on or after 1 July 2028, or as at a specific date on or after 1 July 2028. For engagements involving value chain components prior to 1 July 2028, specific transitional provisions apply. 
• Early adoption is permitted, while additional transitional provisions are prescribed to support that adoption. 

Using the Work of an External Expert 

• The provisions in Part 3 will be effective for: 
  • Audit engagements, review engagements and other assurance engagements outside the scope of Part 5 for periods beginning on or after 15 December 2026, or as at a specific date on or after 15 December 2026.   
  • Other professional services as of 15 December 2026.
• The provisions in Part 5 will be effective for sustainability assurance engagements on sustainability information for periods beginning on or after 15 December 2026, or as at a specific date on or after 15 December 2026.

IRBA will host a virtual launch webinar on 16 March 2026. This session will provide an in-depth overview of the recently adopted International Standard on Sustainability Assurance 5000, General Requirements for Sustainability Assurance Engagements, and the Ethics Standards for Sustainability Assurance, focusing on their application within the South African context. All registered auditors, sustainability practitioners and relevant stakeholders are encouraged to attend.

The proposed changes were published in 2025 Refer to our previous Alert dated 12 June 2026

Click here to download the 412-page document:

https://www.irba.co.za/upload/Final%20Pronouncement%20-%20Ethics%20Standards%20for%20Sustainability%20Assurance%20Engagements%20with%20SA%20Enhancements_Final.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• Adherence with our Code of Conduct is crucial in the performance of our duties.
• Auditors, Independent Reviewers and Accountants should be aware of the latest pronouncements and revisions, publications and guidance issued by regulators and standard-setting boards, such as the IRBA and IESBA – especially as it relates to IESSA and Sustainability Assurance.
• A contravention of, or failure to comply with, any requirements in the IRBA Code may be regarded as improper conduct. This may lead to an investigation and, if appropriate, the registered auditor might be charged in terms of Section 48 of the APA.

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