A new code of ethics puts finance chiefs on the hook to report suspected fraud to corporate boards.
The International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board, has proposed changes to a global ethics code for accountants. While auditors must report a suspected fraud to outside authorities, management accountants need only report their suspicions internally. At the same time, if corporate accountants spill the beans to CFOs, finance chiefs must report what they’ve learned to other senior executives and the audit committee of the board.
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