IAASB and IESBA Launch Joint User Advisory Group to Strengthen Financial Reporting Input
On 2 April 2026, the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) announced the creation of a joint User Advisory Group (UAG). The move gives the users of financial statements and external reporting a direct, structured channel into the global standard-setting process, a voice that has historically been less formally represented than preparers and auditors.
What the User Advisory Group Is and Why It Matters
The UAG is a joint body, meaning it sits across both the IAASB and the IESBA simultaneously rather than belonging to either board alone. Its purpose is to channel perspectives from those who rely on financial statements, including investors, lenders, analysts, and other external report users, directly into the deliberations that shape auditing and ethics standards.
The Gap the UAG Is Designed to Close
Standard-setting consultations have always been open to public comment, but structured participation from end users of financial reports has lagged behind the organised engagement of preparers, audit firms, and national standard-setters. By formalising a joint advisory group, IAASB and IESBA are acknowledging that the people who ultimately depend on audited financial statements, and who bear the cost of poor-quality reporting, should have a consistent seat at the table rather than an occasional voice in comment letters.
For accounting firms advising clients on crypto compliance and reporting, this structural shift matters. As digital asset disclosures become a more prominent feature of financial statements, having investor and user perspectives embedded in standard-setting debates around areas such as IFRS crypto assets treatment and fair value measurement of digital holdings will shape the direction those standards take.
The Joint Structure: IAASB and IESBA Together
The decision to make the UAG a joint initiative rather than two separate groups reflects a broader direction of travel for the two boards. Auditing standards and ethics standards are interconnected: independence requirements, objectivity obligations, and auditor reporting all touch both domains. A single advisory group can surface user concerns that cut across both sets of standards without those concerns being filtered or siloed.
Coordination with Existing Advisory Architecture
Both boards already operate with consultative advisory groups. The UAG adds a user-specific layer, distinct from the technical experts and practitioners who typically populate advisory panels. This parallels approaches taken by other international bodies where investor advisory mechanisms sit alongside technical committees, giving boards a way to pressure-test proposals against real-world user needs before finalising them.
The broader context here connects to ongoing work on professional standards. The IFAC 2026 International Education Standards Handbook published earlier this year signals that the international accountancy infrastructure is actively refreshing multiple pillars at once, from education through to auditing and ethics governance.
Relevance to Digital Asset Accounting and Crypto Financial Statements
The UAG launch is a process development rather than a technical ruling, but its downstream implications for firms handling crypto financial statements are real.
User Expectations and Emerging Disclosure Frameworks
Investors and analysts who use financial statements are increasingly asking hard questions about how entities account for digital assets. Under IFRS, the treatment of crypto assets has been evolving, and the IASB's own agenda decisions have left preparers navigating significant judgment calls. On the US GAAP side, ASC 350-60 introduced a mandatory fair value model for certain crypto assets, a change driven in part by user demand for more decision-useful information.
When user voices are systematically fed into the IAASB and IESBA standard-setting process, those perspectives, including demands for clearer auditor reporting on digital asset valuations, more robust independence guidance where auditors also provide crypto advisory services, and stronger ethics guardrails around novel financial instruments, will have a formal mechanism to surface. Accounting firms and CFOs who track how standards evolve around crypto fair value measurement should treat the UAG as an early-warning channel worth monitoring.
Implications for Audit and Assurance of Digital Asset Disclosures
Firms providing audit or assurance over entities holding material digital asset positions already face the challenge of limited authoritative guidance on how to test fair value assertions for crypto holdings. The IAASB has projects underway that touch on technology and emerging asset classes. User input channelled through the UAG could accelerate the development of more specific guidance, or at minimum flag to the IAASB where current standards leave users feeling underserved by audit reports covering crypto portfolios.
For context on how regulatory bodies are simultaneously tightening the broader compliance environment that surrounds digital asset firms, the confirmed qualified status of Cyprus IIR under EU Pillar 2 illustrates how international tax and reporting standards continue to develop in parallel, adding to the compliance landscape that audit and ethics standards must eventually address.
What Firms Should Do Now
The UAG is newly established. Its membership, working methods, and early agenda items have not yet been published. Accounting firms and their clients should take a few practical steps.
Monitor IAASB and IESBA Output Channels
Both boards publish exposure drafts, consultation papers, and agenda decisions on their respective websites. Firms should ensure someone in their technical or risk function is subscribed to those updates. As the UAG begins to influence board discussions, user-oriented concerns will start appearing in agenda papers, giving firms advance notice of where standards may shift.
Consider Whether to Seek Representation
The announcement describes the UAG as a channel for users of financial statements. Depending on how membership is structured, organisations that represent investors, analysts, or other report users may be eligible to participate or nominate representatives. Firms that advise investor clients, or that have in-house investment functions, should assess whether direct engagement with the UAG is appropriate.
Map the UAG Against Your Digital Asset Reporting Clients
For clients with material crypto holdings reported under IFRS or US GAAP, the UAG's eventual focus areas could affect audit scope, disclosure requirements, and ethics guidance relevant to their auditors. Flagging this structural development in client briefings demonstrates that your firm is tracking standard-setting at the source, not just reacting to finalised rules.
FAQs
What is the IAASB and IESBA joint User Advisory Group?
It is a newly established advisory body, jointly overseen by the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants, designed to bring the perspectives of financial statement users into the global standard-setting process in a structured way.
Does the UAG have any direct authority over accounting standards?
No. It is an advisory body. Its role is to inform the deliberations of the IAASB and IESBA, not to set or approve standards. Final authority over auditing and ethics standards remains with each respective board.
How does this affect firms dealing with IFRS crypto assets or ASC 350-60 positions?
Indirectly, but meaningfully. User groups channelling investor and analyst concerns into the IAASB and IESBA could accelerate or shape guidance on auditor reporting and ethics requirements related to digital asset disclosures. Firms should monitor how UAG inputs appear in future IAASB and IESBA work plans.
When will the UAG begin influencing published standards?
The group was announced on 2 April 2026 and is newly formed. Standard-setting cycles are multi-year processes. Any influence on published standards or guidance would most likely appear in exposure drafts or consultation papers before being reflected in final pronouncements.
Where can firms follow UAG developments?
The IAASB and IESBA both publish news, consultations, and agenda papers on their official websites at iaasb.org and ethicsboard.org respectively. Those are the authoritative sources for UAG updates.
Source: IESBA