International Ethics Standards Board for Accountants (IESBA, the Ethics Board) Chair Jörgen Holmquist in conversation with Accounting Professional & Ethical Standards Board (APESB) Technical Director Channa Wijesinghe following the September 2013 Ethics Board meeting in Sydney, Australia.

Used with permission from APESB.

Discussion topics include:

Opening remarks (0:00 - 0:40)

The IESBA Code's global coverage (0:40 - 5:30)

Suspected illegal acts (5:30 - 10:25)

Long association of senior personnel and rotation of key audit partners (10:25 - 15:30)

Structure of the IESBA Code (15:30 - 21:10)

Role of National Standard Setters (21:10 - 23:25)

Closing remarks (23:25 - 24:50)

The International Accounting Education Standards Board has released an International Education Information Paper to help professional organizations conduct written examinations of aspiring accountants seeking qualification.

In addition to their traditional roles as financial gatekeepers, chief financial officers (CFOs) and others in related finance leadership roles are now expected to participate in driving organizations toward achieving their objectives. As part of organizational leadership, CFOs are expected to increase their support of strategic and operational decision making in a “business partnering” capacity, in addition to fulfilling traditional stewardship responsibilities relating to governance, compliance, and control.

Seeking a global debate among professional accountancy organizations, employers of professional accountants, and other stakeholders on the key implications for the education, training, and development of professional accountants, the IFAC Professional Accountants in Business (PAIB) Committee recently released The Role and Expectations of a CFO: A Global Debate on Preparing Accountants for Finance Leadership as a starting point.

The Discussion Paper establishes a principles-based framework for understanding the changing expectations, scope, and mandate of the CFO and related finance leadership roles. The initiative seeks to capture the key requirements of the CFO role and highlight what professional accountants need to do to prepare for leadership roles in finance; support professional accountancy organizations (PAOs) and employers in their efforts to prepare professional accountants for career progression to finance leadership; and highlight the benefits of a professional accountant serving as the CFO.

IFAC encourages a global dialogue involving a broad range of stakeholders, including PAOs and employers, who prepare accountants for finance leadership; regulators, who are striving for well-governed organizations and market integrity; and professional accountants, who need to consider how to develop the necessary competences for finance leadership, such as through appropriate education and experience, as well as lifelong learning.

IFAC seeks responses and perspectives on five key questions:

• What are the main requirements and expectations of CFOs and finance leaders?
• What are the implications for skills and competency needed?
• What are the key actions for PAOs and employers to prepare professional accountants for finance leadership?
• What are the main factors for professional accountants to consider in striving for finance leadership?
• What might regulators and other stakeholders do to influence the professionalism of finance leadership?

The Discussion Paper supplements outreach through various forums to facilitate discussion and closer relationships between professional accountants, PAOs, employers, regulators, and other stakeholders, the first of which was the Global PAIB Forum in Beijing, China, on October 16, 2013, hosted by the Chinese Institute of CPAs. 

Respondents can also submit their comments electronically through the IFAC website, using the “Submit a Comment” button on the Discussion Paper page (in Publications & Resources). An At a Glance and Resources are also available.

The most recent IFAC SMP Quick Poll of small- and medium-sized accounting practices (SMPs) indicated that fewer of their small business clients are burdened by economic uncertainty, perhaps suggesting a more favorable economic climate and signaling future growth in this sector.

“Over the last few years, economic uncertainty has cast a shadow over SMPs and their clients,” commented SMP Committee Chair Giancarlo Attolini. “Improving conditions in the small business sector, a barometer for economic growth, are a terrific sign for SMP professionals and for the economy at large. As their clients prepare for growth, SMPs will, in turn, also help propel the local economies in which they operate.”

When asked for input regarding the International Auditing and Assurance Standards Board’s 2013 Auditor Reporting Exposure Draft, which proposed significant changes to auditor reporting, respondents were generally supportive. While only a small minority thought unlisted entities would voluntarily opt to disclose key audit matters, most agreed with the proposal to require a statement on going concern in all audit reports.

The poll also shed light on the value of various services and projections for their relative growth. Accounting compilation and other non-assurance/related services proved to be the fastest growing sources of revenue for SMPs, by a significant margin, over audit and assurance. Roughly half of the respondents acknowledged the value of integrated reporting to small- and medium-sized entities (SMEs), and about half predict that within five years, SME clients will ask for assistance with integrated reporting.

For additional findings and a complete summary of results, see the IFAC SMP Quick Poll, 2013 Year-End Round-Up in the SMP Committee area of the IFAC site: www.ifac.org/SMP. Due to unbalanced response rates by region, results may not be statistically representative of global or regional populations of SMPs.

The year-end 2013 poll received 3,709 responses and was conducted in 17 languages from November 15 to December 31. The poll is intended to take a snapshot of key challenges and trends influencing SMPs globally. IFAC wishes to thank the many member and regional organizations that helped with translation and distribution of the poll.

About the SMP Committee
The SMP Committee of the International Federation of Accountants (IFAC) represents the interests of professional accountants operating in small- and medium-sized practices (SMPs). The committee develops guidance and tools and works to ensure the needs of the SMPs are considered by standard setters, regulators, and policy makers. The committee also speaks out on behalf of SMPs to raise awareness of their role and value, especially in supporting SMEs, and the importance of the small business sector overall.

About IFAC
IFAC 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. IFAC is comprised of 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.