What is APES 110? The Code of Ethics, summarised.
In short: APES 110 Code of Ethics for Professional Accountants (including Independence Standards) is the ethical code that members of Chartered Accountants Australia and New Zealand, CPA Australia and the Institute of Public Accountants must comply with. It is issued by the Accounting Professional & Ethical Standards Board (APESB) and adapted from the international code published by the International Federation of Accountants. Its core is five fundamental principles and a conceptual framework for applying them.
This page is a plain summary of the Code: what it is, who it binds, how it is organised, what the five principles require, and how the current version came to be. It is written for anyone who needs to understand APES 110 quickly, whether a new graduate, a practice manager or a client. Our separate guides cover how the Code applies to AI tools.
General information only. This guide summarises published professional standards, legislation and regulator guidance and is not legal or professional advice. Read the primary sources linked throughout, and take advice on your firm’s specific position.
Who issues it, and who must comply
APESB issues APES 110 under licence from the International Federation of Accountants, and the Code is based on and adapted from the International Code of Ethics for Professional Accountants (including International Independence Standards). All members of the three Australian professional bodies are required to comply with it. Registered tax and BAS agents who are not members of those bodies are bound by the TPB Code of Professional Conduct instead, and members who are also registered agents are bound by both.
How the Code is organised
| Part | Sections | Applies to |
|---|---|---|
| Part 1 | 100 to 199 | All members: the fundamental principles and the conceptual framework |
| Part 2 | 200 to 299 | Members in business, including employment relationships of members in public practice |
| Part 3 | 300 to 399 | Members in public practice |
| Part 4A | 400 to 899 | Independence for audit and review engagements |
| Part 4B | 900 to 999 | Independence for assurance engagements other than audit and review |
| Part 5 | 5000 series | Australian ethics standards for sustainability assurance |
Paragraphs beginning with R are requirements; paragraphs beginning with a number and the letter A are application material explaining how to meet them. Paragraphs marked AUST are Australian additions to the international text.
The five fundamental principles
Section 110 sets out the principles every member must comply with. Each has its own subsection:
To be straightforward and honest in all professional and business relationships. Members must not knowingly be associated with reports, returns or other information that is materially false or misleading, provided recklessly, or that omits required information in a misleading way.
To exercise professional or business judgement without being compromised by bias, conflict of interest, or undue influence of, or undue reliance on, individuals, organisations, technology or other factors.
To attain and maintain the knowledge and skills needed to provide competent services, based on current technical and professional standards and relevant legislation, and to act diligently. Members must also ensure those working under their authority have appropriate training and supervision, and make clients aware of the limitations inherent in their services where appropriate.
To respect the confidentiality of information acquired in professional and business relationships: to be alert to inadvertent disclosure, to maintain confidentiality within the firm, and to ensure staff and advisers comply. Members must not disclose or use such information without a legal or professional duty or right, or the client’s authority.
To comply with relevant laws and regulations, to behave consistently with the profession’s responsibility to act in the public interest, and to avoid conduct that might discredit the profession, including exaggerated claims in marketing.
The conceptual framework
Section 120 provides the method for applying the principles. Members must identify threats to compliance, evaluate whether each threat is at an acceptable level, and address threats that are not, by eliminating the circumstance, applying safeguards, or declining or ending the activity. Threats fall into five categories: self-interest, self-review, advocacy, familiarity and intimidation. Throughout, members must have an inquiring mind, exercise professional judgement, and use the “reasonable and informed third party test”, which asks whether a reasonable, informed outsider would likely reach the same conclusion. The Code also lists forms of bias to be aware of when exercising judgement, including anchoring, availability, confirmation and automation bias.
How the current version came to be
- November 2018. APESB issued the restructured Code, aligned with the restructured international code, effective from 1 January 2020. It replaced the previous APES 110.
- Amending standards since. The Code is amended periodically and reissued as a compilation. Amendments have covered the role and mindset expected of members, objectivity of engagement quality reviewers, fees, public interest entities, tax planning, and sustainability assurance.
- June 2024, technology-related revisions. Effective from 1 January 2025 for Parts 1 to 3, these added technology to the objectivity principle, to competence, and to the conceptual framework, and introduced a requirement for members in public practice to determine whether using the output of technology is appropriate for the purpose (R320.11).
- July 2025 compilation. The current compiled Code, incorporating all amendments to that date, is published on the APESB website.
Where to read it
The compiled Code, the amending standards and APESB’s technical updates are all on the APESB APES 110 page. The Code is long, over 500 pages in the compilation, but Part 1 is under 60 pages and is the part every member needs to know.
APES 110 and AI
The Code does not use the words artificial intelligence, but since the 2024 revisions it addresses technology directly, and most AI questions in an accounting firm are answered by Subsection 114 on confidentiality and by R320.11 on using the output of technology. Our APES 110 and AI guide and the series it introduces take each obligation in turn.
Common questions
Is APES 110 mandatory?
What are the five fundamental principles of APES 110?
What is the difference between APES 110 and the TPB Code of Professional Conduct?
How often is APES 110 updated?
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