Monitoring Group Update from IFAC President & CEO

On July 14, the Monitoring Group published its final paper (the “Paper”) concerning reforms to the global standard-setting process for audit, assurance and ethics, Strengthening The International Audit And Ethics Standard-Setting System.

The Paper, which is the product of an extensive multi-stakeholder consultation process over the last few years, demonstrates a renewed commitment to a global standard-setting ecosystem that is responsive to the public interest.  It maintains strengths of the current arrangements that have contributed to broad worldwide adoption, to date, of the International Standards on Auditing and the IESBA Code of Ethics, while recommending enhancements where needed. Moving forward with the recommendations will enhance the collective trust and confidence of stakeholders in the standard-setting process, thus ensuring the continued widespread adoption and implementation of the standards.

We are pleased to report that the Paper recognizes the important and necessary role that IFAC and the profession will continue to play in the standard-setting process. While there will be changes in the way standards are developed, the recommendations are aligned with our Strategy and there is no change to our Vision, Mission, Purpose or Strategic Objectives. Our strategy since the 2003 IFAC Reforms has been to support an independent standard-setting process for audit, assurance and ethics standards, and the adoption and implementation of the resultant standards. That is our strategy today, and that will continue to be our strategy after any recommendations emanating from the Paper are implemented. While we will have less direct involvement with certain aspects such as the nominations process, we will now have even wider latitude and a greater opportunity to express our views and input to the boards on standard-setting matters that we believe need to be addressed.