ACCA does not have specific regulations in relation to outsourcing and offshoring work. However, there are aspects of our Code of Ethics and Conduct that are relevant in these areas.

The IESBA Code forms an integral part of ACCA’s Code of Ethics and Conduct. We adopt the IESBA Code in full and adopt any revisions to the IESBA Code in their entirety and unaltered. ACCA publishes the latest edition of the IESBA Handbook as a separate downloadable Adobe PDF on the Rulebook: Code of Ethics and Conduct page of the ACCA website (with permission from IFAC), making it directly available to our members.

The Fundamental Principles section (section 110) 

This section highlights professional competence and due care which applies to professional accountants and requires them take reasonable steps to ensure that those working in a professional capacity under their authority have appropriate training and supervision.  

The Conceptual Framework section (section 120) 

This section requires professional accountants to apply the conceptual framework to identify, evaluate and address threats to compliance with the Fundamental Principles. 

The conceptual framework specifies an approach for a professional accountant to 

(a) Identify threats to compliance with the fundamental principles

(b) Evaluate the threats identified 

(c) Address the threats by eliminating or reducing them to an acceptable level. 

When threats are not at an acceptable level, the conceptual framework requires you to address those threats. Applying safeguards is one way that threats might be addressed. One of the categories of threats to compliance with the fundamental principles is 'Self-review threat' – the threat that a professional accountant will not appropriately evaluate the results of a previous judgment made, or an activity performed by the accountant or by another individual within the accountant’s firm or employing organisation, on which the accountant will rely when forming a judgment as part of performing a current activity.

ACCA members making use of outsourcing will need to ensure that they carry out reviews of the work produced by outsourcing providers. 

Using the Work of Others (220.7) 

This section requires a professional accountant who intends to use the work of others, whether internal or external to the employing organisation, or other organisations, to exercise professional judgment to determine the appropriate steps to take, if any, in order to fulfil the responsibilities set out in paragraph R220.4 which relates to the preparation and presentation of information.

Factors to consider when a professional accountant intends to use the work of others include:

  • The reputation and expertise of, and resources available to, the other individual or organisation
  • Whether the other individual is subject to applicable professional and ethics standards.  

Such information might be gained from prior association with, or from consulting others about, the other individual or organisation. ACCA members making use of outsourcing will need to do their due diligence on the expertise of the outsourcing providers.