The SMPAG supports the IAASB’s current standard-setting projects underway. They believe the Audits of Less Complex Entities project should be a priority for the Board and welcome the significant progress that has been made and the forthcoming consultation on the draft standard. They also noted their preference on prioritization of 8 projects that the IAASB is considering.
Join the IAASB for the second LinkedIn Live session discussing the recently proposed new standard for audits of less complex entities on October 20 at 8 am ET. The session will feature IAASB Member Chun Wee Chiew, IAASB Consultative Advisory Group Member Claes Norberg, and IAASB Technical Director Willie Botha discussing on which entities the proposed standard can be used, who makes decisions regarding using the standard, and how those decisions are made. They will also discuss how the standard will be received by users of the financial statements. IAASB Technical Advisor and Member of the IAASB LCE Task Force Viviene Bauer will moderate the discussion.
The third and final livestream discussion in this series will air on November 17 at 8 am ET. It will feature IAASB Member Julie Corden, LCE Reference Group Member Andrew Braithwaite, and IAASB LCE Task Force Member Brendan Murtagh discussing what the proposed new standard means for audit firms and practitioners, including the benefits of the standard, what firms, engagement partners and teams need to consider in decision making, and the potential impact on small- and medium-sized practices. The first session in the series, which addressed the journey to the proposed new standard and its key principles, is available on LinkedIn and YouTube.
The IAASB strongly encourages all interested stakeholders to provide their feedback on the proposed new standalone standard for audits of less complex entities by January 31, 2022. The standard is relevant to users of financial statements, owners, management, and those charged with governance of entities, preparers of financial statements, legislative or regulatory authorities, relevant local bodies with standard-setting authority, professional accountancy organizations, academics, regulators and audit oversight bodies, and auditors and audit firms, among others.
Second Discussion, Who Can Use the Proposed Standard and Will It Be Used, Livestreams October 20, 8 am ET
The International Public Sector Accounting Standards Board (IPSASB) announced that in 2022 it will have a majority female Board for the first time. The IPSASB will be comprised of ten women and eight men beginning 1 January 2022.
The geographic diversity of the IPSASB will also increase with new members from China and Saudi Arabia.
The new appointees to the IPSASB have been selected following a rigorous nominations and interview process involving the IFAC Nominating Committee and IPSASB leadership, overseen by the Public Interest Committee. The IFAC Board approved the recommended candidates.
The four new Board members are:
The following two current Board members have been reappointed:
“The IPSASB is leading the way with a majority female Board for 2022,” said IPSASB Chair Ian Carruthers. “Diversity of Board membership is essential to ensure the delivery of high-quality standards that can strengthen public financial management globally. The appointment of new members from the Asia and Middle East regions will also be important to ensuring that our outputs meet the needs of an increasingly diverse group of users.”
The IPSASB also announced that Ms Lindy Bodewig of South Africa will continue her role as the IPSASB Deputy Chair for 2022. “I am extremely pleased that Lindy has agreed to serve as my deputy for another year. Lindy brings to our work the powerful combination of experience through her day job in government and national and international public sector standard setting. She has played a particularly important role as the chair of the Task Force of our high-profile project on Natural Resources,” said Mr. Carruthers. “I also want to take this opportunity to thank outgoing members, Mike Blake, Adrienne Cheasty, Bernhard Schatz, and Marc Wermuth for their many important contributions to our work during their time with the Board. We are extremely grateful for their dedication and commitment”.
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.
IFAC and ACCA last week hosted their third annual Climate Week NYC event: Plugging the Net-Zero Information Gap. The event brought together finance and accounting professionals to better understand the information gap that exists between business and investors and what could be done to address it.
A recording of the event and takeaways are now available.
“The consensus is clear: The work required to transition business and deliver quality information to investors is no easy task, but the dire nature of the climate crisis requires action now,” said Kevin Dancey, IFAC CEO. “Climate literacy and collaboration, both within an organization and with stakeholders, are both essential to enact plans that will result in businesses setting and achieving net-zero goals.”
Watch the recording and read the takeaways now.
About IFAC: The International Federation of Accountants (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. Comprised of 180 members and associates in more than 130 countries and jurisdictions, IFAC represents more than 3 million accountants in public practice, education, government service, industry and commerce.
Over four decades, IFAC has represented the global profession and supported the development, adoption, and implementation of international standards that underpin the contributions of today’s global accountancy profession. IFAC has maintained a long-term approach to building and strengthening a global accountancy profession that supports transparent, accountable, and sustainable organizations, financial markets, and economies. More information is here.
Climate Week NYC Recording and Takeaways Available
The International Auditing and Assurance Standards Board (IAASB) today released an updated version of the First-time Implementation Guide for International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, which was previously issued on June 14, 2021.
The update was made in response to questions the IAASB received on the illustrative table on page 89 of the original guide illustrating some scenarios relating to the evaluation of the firm’s system of quality management and related possible conclusions in accordance with paragraph 54 of ISQM 1. The table was intended to illustrate how the combination of various factors outlined in the table may affect what conclusion is reached. It was not intended to be definitive on the conclusions reached in each circumstance.
Given a number of questions from various sources about how to interpret the table, the following revisions were made to provide further context and clarification when evaluating the system of quality management:
The suite of quality management standards come into effect on December 15, 2022. This guide, and the first-time implementation guide for ISQM 2, do not amend or override the International Standards on Quality Management, the texts of which alone are authoritative. Reading the publications are not a substitute for reading the ISQMs. The IAASB encourages all practitioners to plan early for appropriate implementation, given the potential impact of the changes to firms’ systems of quality management.
IFAC is dedicating our second annual virtual summit to sustainability and helping professional accountants do different things with the skills and competencies they already have in their toolbox.
Our three-day summit in October will focus on the demand for organizations to act and the needs and perspectives of investors, regulators and public interest entities. It features speakers with global expertise in sustainability, environmental, social, and governance (ESG), integrated and sustainability reporting, sustainability-related investor needs, and more. It will help professional accountants, and the professional accountancy organizations that support them, understand—and take action to meet—growing demands for sustainability services from the public and private sector.
New Platform
Taking advantage of the virtual world, this year’s summit will take a place in a new platform built for virtual conferences by the American Accounting Association. The platform features an exhibit hall available 24 hours a day, conference chat function, speaker backgrounds and Zoom integration. Keynotes and sessions will also include live interpretation in French, Russian, and Spanish. Video recordings for sessions will also be available on the IFAC website following the event.
Agenda
Additional details will be published in IFAC Events as speakers are confirmed.
Join the IAASB for a three-part discussion series on LinkedIn on the proposed new standard for audits of less complex entities. In the first session IAASB Chair Tom Seidenstein, IAASB Member and Less Complex Entities (LCE) Task Force Chair Kai Morten Hagen, and IAASB Deputy Director Beverley Bahlmann will address the journey to the proposed new standard, its key principles, how it compares to the existing suite of International Standards on Auditing (ISAs) and why it is important for stakeholders. The first discussion will livestream on LinkedIn on September 28 at 8 am ET.
The second livestream discussion will follow on October 20 at 8 am with IAASB Technical Director Willie Botha, IAASB Member Chun-Wee Chiew and IAASB Consultative Advisory Group Member Claes Norberg addressing on which entities the proposed standard can be used, who makes decisions regarding using the standard, and how those decisions are made. IAASB Technical Advisor and LCE Task Force Member Viviene Bauer will moderate the discussion.
The third and final livestream in this series will air on November 17 at 8 am. It will feature IAASB Member Julie Corden, LCE Reference Group Member Andrew Braithwaite, and IAASB LCE Task Force Member Brendan Murtagh discussing what the proposed new standard means for audit firms and practitioners, including the benefits of the standard, what firms and engagement teams need to consider in decision making, and the potential impact on small- and medium-sized practices.
The IAASB strongly encourages all interested stakeholders to provide their feedback on the proposed new standalone standard for audits of less complex entities by January 31, 2022. The standard is relevant to users of financial statements, owners, management and those charged with governance of entities, preparers of financial statements, legislative or regulatory authorities, relevant local bodies with standard-setting authority, professional accountancy organizations, academics, regulators and audit oversight bodies, and auditors and audit firms, among others.
First Discussion, What Makes the IAASB’s Draft Less Complex Entities Standard So Important?, Livestreams September 28, 8 am ET
A 2021 joint report from Association of Chartered Certified Accountants (ACCA), Chartered Accountants Australia and New Zealand (CA ANZ), and the International Federation of Accountants (IFAC) finds a fall in public support for international tax collaboration despite recent corporation tax agreement.
IFAC defined two key actions for G20 leaders to focus on as COVID-19 persists: supporting the IFRS Foundation’s initiative on sustainability standards, and championing public financial management. Commitment to these two actions, which build on the four priorities laid out in IFAC’s 2020 G20 Call to Action, is central to building a better future.
“For society to transition out of the COVID-19 pandemic in a more sustainable, inclusive, and prosperous position than we entered it, we need a concerted effort from global policymakers and the accountancy profession,” said CEO Kevin Dancey. “To seize these opportunities, we must act now.”
To strengthen global economies, societies, and the environment, as well as tackle challenges resulting from the COVID-19 pandemic, IFAC calls on G20 leaders to:
1. Support the IFRS Foundation Initiative on Sustainability Standards:
Achieving a more sustainable and inclusive economy with the necessary speed requires mobilizing the private sector and governments to work together. The G20 Finance Ministers and Central Bank Governors have identified the critical role of high-quality and comparable data and disclosures in mobilizing sustainable finance. The B20 Finance & Infrastructure Task Force recognizes the same. Momentum is growing around developing a global baseline of sustainability standards, with the IFRS Foundation poised to deliver. IFAC strongly supports this crucial work.
2. Champion Public Financial Management:
At the heart of public sector transparency and integrity—and prosperity for all individuals—is public financial management (PFM). A robust PFM system means that resources are appropriately allocated against public policy objectives that are in the public interest. Governments must endeavor to achieve the most with the resources they have, while minimizing loss through waste, fraud, or corruption—high quality PFM makes this happen. IFAC calls on the G20 to set an example for all jurisdictions worldwide in championing a continued focus on high-quality PFM.
Read IFAC’s full 2021 G20 Call to Action here and learn more about the accountancy profession’s role in enhancing corporate reporting during IFAC’s 2021 EdExchange: Leading Sustainability virtual summit October 12-14.
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 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
Urges continued commitment to sustainability, inclusion, prosperity, and global collaboration
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