Monitoring Group Acknowledges Progress of IFAC Reforms, Identifies Next Steps
The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 125 countries, today commented on the Monitoring Group’s Review of the IFAC Reforms — Final Report.
In the report, the Monitoring Group states that virtually all of the changes called for by the IFAC Reforms have been implemented. It also acknowledges that the initial implementation of the IFAC Reforms has been a significant undertaking, and it recognizes the numerous achievements with respect to their implementation.
The concept of the IFAC Reforms originated in 2002, when IFAC and a group of six international financial institutions—the Basel Committee on Banking Supervision, the European Commission, the Financial Stability Board, the International Association of Insurance Supervisors, the International Organization of Securities Commissions, and the World Bank (the Monitoring Group)—began a dialogue about the importance of high-quality audits of financial statements and the need to restore and enhance public confidence in financial reporting and auditing. The result of this dialogue was the IFAC Reforms.
The IFAC Reforms changed the structure and processes for the auditing, ethics, and education standard-setting boards supported by IFAC. The Reforms called for the Monitoring Group to perform a five-year review of their implementation.
In addition to recognizing the successful breadth and depth of achievements of the IFAC Reforms, the Monitoring Group has identified a number of near-term actions for IFAC and the standard-setting boards it supports, focused on further enhancing diversity, transparency, and accountability.
“We welcome the publication of this report,” said Ian Ball, CEO of IFAC, “and we appreciate the collaborative manner in which the Monitoring Group has undertaken the review, as well as their recommendations.”
“We are in complete agreement that international standard-setting in the public interest is a challenge that requires ongoing continuous improvement,” concluded Ball, “and we look forward to working with the Monitoring Group in determining how the recommendations they have raised can best be addressed.”
To view the final report, visit: www.iosco.org/monitoring_group/pdf/MG_Doc_4.pdf.
About IFAC
IFAC (www.ifac.org) is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.