As part of its comprehensive program to enhance the clarity of international standards, the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), has issued three exposure drafts of proposed International Standards on Auditing (ISAs) that follow its new clarity drafting conventions. These exposure drafts form part of the IAASB's ambitious 18-month program to redraft existing standards and to develop new and revised standards following the new drafting conventions. The IAASB developed the new drafting conventions after extensive consultation with interested parties, including its Consultative Advisory Group and national auditing standards setters, on how to enhance the clarity of its pronouncements.

Key elements of the new drafting conventions include: basing the standards on objectives, as opposed to procedural considerations; using the word "shall" to identify requirements that the professional accountant is expected to follow in the vast majority of engagements; eliminating the present tense to describe actions by the professional accountant; and structural improvements to enhance the overall readability and understandability of the standards.

The following three proposed standards have been redrafted following the new drafting conventions:

• ISA 320 (Revised and Redrafted), Materiality in Planning and Performing an Audit;
• ISA 450 (Redrafted), Evaluation of Misstatements Identified during the Audit; and
• ISA 260 (Revised and Redrafted), Communication with Those Charged with Governance.

"The concept of materiality, the evaluation of misstatements identified during the audit, and high quality and relevant discussions between those charged with governance and the auditor are fundamental to an audit," explains IAASB Chairman John Kellas. "We believe that the proposed redrafted standards contain clear requirements and easy to understand application guidance in these very important areas."

How to Comment

Respondents are asked to comment on the application of the new drafting conventions only. Comments on all three exposure drafts are requested by February 15, 2007. The exposure drafts may be viewed by going to http://www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org. They can also be faxed to the attention of the Executive Director, Professional Standards at +1 (212) 286-9570 or mailed to IFAC, 545 Fifth Avenue, 14th Floor, New York, NY 10017, USA. All comments will be considered a matter of public record and will ultimately be posted of IFAC's website.

About the IAASB and IFAC

The objective of the IAASB, an independent standard-setting board within IFAC, is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes the criteria for its due process and working procedures. IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. Its current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The World Federation of Exchanges (WFE) formally endorsed the processes for establishing International Standards on Auditing (ISAs) at its General Assembly meeting in Sao Paolo, Brazil last week, viewing ISAs as key to the development of a globally uniform financial reporting system. ISAs are developed by the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board of the International Federation of Accountants (IFAC).

"WFE's endorsement of IFAC's structure of public oversight and the processes its public bodies have established for creating high quality global standards for audit work and assurance reviews is a critical advance for establishing the world's capital markets with constantly improving financial information," emphasizes WFE Secretary General Thomas Krantz. The WFE represents 57 securities and derivative markets that account for more than 97 percent of world stock market capitalization. Its endorsement provides important impetus for convergence to international standards, which is among IFAC's and the IAASB's most critical goals.

"We welcome this important endorsement of the ISA standard-setting process by the World Federation of Exchanges. It is a significant recognition of the quality of the ISAs and the important role they play in ensuring greater comparability of financial information for investors and facilitating cross border trade - both of which are critical to generating economic growth," states IFAC President Graham Ward.

The ISAs represent an integrated body of standards that provide direction on the actions and procedures the auditors need to perform and the judgments that need to be made to achieve the objective of an audit. ISAs are intended for use in all audits - publicly traded companies, private business of all sizes and government entities at all levels. They are increasingly being adopted worldwide; over 100 countries have adopted or incorporated ISAs into their national auditing standards or are using ISAs as a basis for preparing national auditing standards.

The IAASB, which meets in public, develops its standards following a rigorous and transparent due process. All proposed ISAs are exposed for public comment, and detailed project information is posted on its website (http://www.iaasb.org). The IAASB receives public interest input through public members that serve on the IAASB and from its Consultative Advisory Group* which is comprised of organizations, including the WFE, with an interest in the development of high quality international auditing standards. In addition, the Public Interest Oversight Board,** whose members are nominated by international regulators and organizations, provides public interest oversight of IAASB activities. All IAASB standards and guidance can be downloaded free-of-charge from the IFAC online bookstore: http://www.ifac.org/store.

About the IAASB and IFAC

The objective of the IAASB is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board** oversees the activities of the IAASB and, as one element of that oversight, establishes the criteria for its due process and working procedures. IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. Its current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The American Institute of Certified Public Accountants (AICPA), the American Accounting Association (AAA), and the International Auditing and Assurance Standards Board (IAASB) have joined forces to launch a research initiative that will provide a better understanding of users' perceptions of the financial statement audit and the auditor's report. The research is intended to independently examine the perceptions of users of financial statements in countries around the world. A "Request for Proposal" is being issued this week, soliciting academic research to identify and provide information about such perceptions. The AICPA's Auditing Standards Board (ASB) has a current project to consider whether the auditor's report should be revised. The IAASB recently completed a project in this regard. The new research findings will provide important information that can be used as a basis for any future revisions to the auditor's report.

"Anecdotal evidence points to financial statement users not consistently understanding communications in an unqualified auditor's report, but there's little rigorous evidence to support the anecdotal observations," points out Douglas F. Prawitt, Chair of the ASB's Audit Report Research Task Force and Glen Ardis Professor of Accountancy at Brigham Young University. "This project should provide the required information, as well as anchor any effective modifications necessary to clarify the communication of information to financial statement users."

Mark Beasley, President of the AAA Auditing Section and a professor at North Carolina State University, explains, "We are thinking globally with this project. The plan is for the ASB to select one or more proposals to examine U.S. perceptions and the IAASB to select one or more proposals to examine perceptions internationally. We envision that, once the selected projects are completed, the ASB and IAASB will fund additional research to identify and explore ways in which the auditor's reports might be revised to communicate more clearly and to address identified user misperceptions."

IAASB Technical Director Jim Sylph emphasizes the public interest benefit of the project: "The interests of all stakeholders will be better served if any gaps between users' understanding and the intended meaning of the auditor's report, including the level of assurance that can reasonably be derived from a financial statement audit, can be identified and addressed."

Research proposals must be submitted by October 2, 2006 to Sharon Walker, Technical Manager, Audit and Attest Standards, AICPA, 1211 Avenue of the Americas, New York, NY 10036-8775. The "Request for Proposal" may be downloaded from the IAASB home page at www.iaasb.org. The ASB and IAASB will fund between US$10,000 and $20,000 for each project. Researchers are required to submit a summary of results to the ASB and IAASB by October 1, 2007, with a more detailed report to be provided to the Boards by January 7, 2008. The summary should be tailored toward practitioners, rather than readers of an academic journal. Researchers will have the right to publish the research, so long as the Boards are given appropriate credit for research support provided.

The American Institute of Certified Public Accountants (www.aicpa.org) is the national, professional association of CPAs, with approximately 330,000 members, including CPAs in business and industry, public practice, government, and education. It sets ethical standards for the profession and U.S. auditing standards for audits of private companies; federal, state and local governments; and non-profit organizations. It also develops and grades the Uniform CPA Examination.

The American Accounting Association (http://aaahq.org) promotes worldwide excellence in accounting education, research and practice. Founded in 1916 as the American Association of University Instructors in Accounting, its present name was adopted in 1936. The Association is a voluntary organization of persons interested in accounting education and research.

The IAASB (www.iaasb.org) is an independent standard-setting board within the International Federation of Accountants. Its objective is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes the criteria for its due process and working procedures.

The Board of the International Federation of Accountants (IFAC) has approved the reappointment of John Kellas, MA, FCA, as Chair of the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of IFAC. Mr. Kellas has served on the IAASB since October 2000 and as Chair since January 2004 (a position that became full-time on October 1 of that year). His appointment to a second term, beginning January 1, 2007 and ending December 31, 2008, was endorsed by the Public Interest Oversight Board (PIOB), which oversees the IAASB's activities to ensure that they are properly responsive to the public interest.

"We are delighted that John has agreed to accept appointment to a second term as Chair of the IAASB. His leadership has been invaluable over the past three years as he has worked to increase public interest input to the IAASB's standard-setting process, enhance the transparency of that process, and build relationships with national standard setters," states IFAC President Graham Ward.

As Chair of the IAASB, Mr. Kellas will continue to lead the IAASB's efforts to develop high quality International Standards on Auditing and to promote convergence with those standards and their adoption by the European Commission. In addition, he will continue to serve as the primary contact with the IAASB Consultative Advisory Group to ensure that public interest perspectives are fully considered by the IAASB.

"The continuity of the Chairmanship of the IAASB is important at this time as we are in the middle of our major initiative to improve the clarity and effectiveness of our standards. At the same time, the European Commission is considering the adoption of International Standards of Auditing under the revised 8th Directive. We shall therefore be giving close attention to these matters over the next two years, and I look forward to working with the IAASB to bring both to successful conclusions," states John Kellas.

PIOB Chairman Stavros Thomadakis said, "Since the formation of the PIOB in February 2005, we have cooperated closely with John in our oversight of the IAASB. His decision to accept reappointment over this next critical period will ensure that the IAASB continues to focus on important issues that greatly affect the international public interest."

Mr. Kellas served as a member of the United Kingdom Auditing Practices Board from 1991 to 2002. Until his retirement in 2004, he was a partner in KPMG LLP in London, where he headed the Department of Professional Practice from 1990 to 2004.

About the IAASB and IFAC The objective of the IAASB, an independent standard-setting board within IFAC, is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes the criteria for its due process and working procedures.

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. Its current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

* Notes to Editors The IAASB Consultative Advisory Group (CAG) is independent of the International Federation of Accountants. The objective and the scope of activities of the CAG, with the rules for membership, and operating procedures are set out in its terms of reference. The terms of reference and a complete list of CAG member organizations can be found on the IAASB website. The Public Interest Oversight Board (PIOB) was formally established in February 2005 to oversee IFAC's auditing and assurance, ethics, and education standard-setting activities as well as the IFAC Member Body Compliance Program. The objective of the PIOB is to increase confidence of investors and others that such activities, including the setting of standards by the IAASB, are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.

Alta Prinsloo and James Gunn have been named Deputy Directors of the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). In announcing the appointments, IFAC Chief Executive Ian Ball said the promotion of Ms. Prinsloo and Mr. Gunn, both of whom currently serve as senior technical managers to the IAASB, recognizes the high level of expertise, broad-based experience, and depth of knowledge that they bring to the newly created positions. Both individuals assumed their new positions on May 1, 2006 and continue to report to James Sylph, IFAC Technical Director.

Ms. Prinsloo joined the IAASB staff team in September 2002 from the South African Institute of Chartered Accountants. As IAASB Deputy Director, she will provide technical direction on the development of the Board's standards. In addition, she will oversee the publication of IAASB pronouncements in electronic and print formats and ensure that IAASB initiatives and related information are appropriately communicated through the Board's website (www.iaasb.org) and other outlets. She will also provide administrative support to the IAASB Consultative Advisory Group and act as point of contact between the IAASB and the International Organization of Supreme Audit Institutions.

Mr. Gunn was seconded from his firm, KPMG, to assist the IAASB between November 2000 and May 2001. He joined the IAASB on a permanent basis in September 2002. As Deputy Director, he will oversee and coordinate all IAASB standard-setting projects, including the Clarity project, which is designed to enhance the readability and understandability of IAASB pronouncements. He will also monitor auditing standard activities of key national standard setters and administer the annual meeting that the IAASB hosts with those bodies.

About the IAASB

The objective of the IAASB, an independent standard-setting Board within IFAC, is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board* oversees the activities of the IAASB and, as one element of that oversight, establishes the criteria for its due process and working procedures.

* Note to Editors The Public Interest Oversight Board was formally established in February 2005 to oversee IFAC's auditing and assurance, ethics, and education standard-setting activities as well as the IFAC Member Body Compliance Program. The objective of the PIOB is to increase confidence of investors and others that such activities, including the setting of standards by the IAASB, are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.

The International Federation of Accountants' (IFAC's) 2006 Handbook of International Auditing, Assurance, and Ethics Pronouncementsis now available in print and in several electronic formats. It includes all pronouncements issued by the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants through December 31, 2005. The handbook includes the following IAASB pronouncements:

• International Standards on Auditing (ISAs);
• International Standards on Review Engagements (ISRE);
• International Standards on Assurance Engagements; and
• International Standards on Related Services.

The 2006 handbook features the following new standards issued by the IAASB in 2005:

• ISA 230 (Revised), Audit Documentation; and
• ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity.

In addition, the handbook contains the revised Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants in June 2005. The updated Code establishes a conceptual framework for all professional accountants to ensure compliance with the five fundamental principles of professional ethics. These are integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. The Code, which becomes effective June 30, 2006, applies to all professional accountants, including those in business and industry, public practice, the public sector, and academia. Two electronic versions of the 2006 handbook are available: a free PDF downloadable version and an online eComPress version. The eComPress version has features designed to make accessing the pronouncements more user-friendly.

• It is fully searchable, so users can readily find the specific guidance they need.
• Its easy-to-use navigation enables users to minimize the time necessary to find relevant information.
• The handbook can be annotated by the user with a unique "Notes" feature, with all the annotations being transcribed automatically to newer editions.
• The publication is compressed and stays compressed, saving disk space and download time.

Used offline, the eComPress version of the handbook is not reliant on the Web and requires no additional software as it comes complete with its own viewer and index. The eComPress version of the handbook can be securely purchased and is immediately downloadable from the IFAC website. Prices for the 2006 Handbook of International Auditing, Assurance, and Ethics Pronouncements are as follows: print - US $100 and eComPress download - US$50. A package discount of US$130 is available when you purchase both the print and eComPress download versions. Downloadable networked versions are also available. Shipping charges apply for printed materials. Visit the IFAC online bookstore at http://www.ifac.org/Store for more information or to place an order. You can also contact IFAC at +1 (212) 471-8722.

IFAC is the worldwide 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's current membership consists of over 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high-quality performance by professional accountants in business.

Proposals designed to enhance the quality of audits of group financial statements are released today by the International Auditing and Assurance Standards Board (IAASB). The IAASB recently approved, and is now issuing, a re-exposure draft (ED) of the proposed International Standard on Auditing (ISA) 600 (Revised and Redrafted), The Audit of Group Financial Statements. The ED is drafted in the new style designed to enhance the clarity of IAASB pronouncements. Following earlier consultations, the IAASB has modified the proposals and reissued the ED. The primary issues revolve around the extent to which the group auditor needs to be involved in the audits of components that are audited by other auditors, whether these auditors are independent of the group auditor (unrelated) or belong to the group auditor's national or international firm or network of firms (related auditors). The IAASB is, therefore, seeking reaction on the following two specific matters:

• Previous proposals distinguished between the work that the group auditor needed to do, depending upon whether other auditors were related or not. While this may be a relevant factor, the strength of relationships varies, and the IAASB considers that the distinction is not of itself a sufficient basis for determining the group auditor's work. The IAASB has, therefore, proposed eliminating the distinction in the proposed ISA; this has given rise to substantial changes to some of the proposed requirements. Respondents are asked to indicate whether they are in agreement with the proposal and the effect that it has on the procedures that the group auditor performs in relation to the work of other auditors.
• The proposed ISA is drafted on the basis that a group auditor takes sole responsibility for the audit opinion on the group financial statements. This requires that the group auditor obtain sufficient appropriate audit evidence on which to base such an opinion. Because current group audit practices vary, the IAASB considered it necessary to be reasonably specific about the steps to be taken, and the work effort required, by the group auditor to acquire such evidence when other auditors are involved. Respondents are asked whether this approach is justified.

In addition, respondents are invited to comment on the application of the clarity drafting conventions. John Kellas, Chairman of the IAASB, explains: "Our proposals respond to public expectations for continuous improvement in auditing standards. In particular, a number of regulatory bodies and studies supported the need for this project. The IAASB has shown itself to be prepared to tackle such major audit areas. The project has not been an easy one, but we are confident that the proposed standard will enhance current practice and promote consistency worldwide." In developing the requirements and guidance, the IAASB considered regulatory and standard-setting developments around the world, the interests of small entities, and the expectations of various stakeholders.

How to Comment

Comments on the ED are requested by July 31, 2006. The ED may be viewed by going to http://www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org. They can also be faxed to the attention of the IAASB Technical Director at +1-212-286-9570 or mailed to the IAASB Technical Director at 545 Fifth Avenue, 14th Floor, New York, NY 10017, USA. All comments will be considered a matter of public record and will ultimately be posted on the International Federation of Accountants' (IFAC's) website.

About IAASB

The objective of the IAASB, an independent standard-setting board within IFAC, is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board* oversees the activities of the IAASB and, as one element of that oversight, establishes the criteria for its due process and working procedures.

* Note to Editors The Public Interest Oversight Board was formally established in February 2005 to oversee IFAC's auditing and assurance, ethics, and education standard-setting activities as well as the IFAC Member Body Compliance Program. The objective of the PIOB is to increase confidence of investors and others that such activities, including the setting of standards by the IAASB, are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.

The Consultative Advisory Group (CAG) of the International Auditing and Assurance Standards Board (IAASB) has announced that its meetings are now open to the public. Its next meeting is scheduled for May 11-12 in Paris.

The IAASB CAG is comprised of organizations that are interested in the development of high quality international standards on quality control, audits, reviews and other assurance engagements designed to serve the public interest. Members include international organizations that represent users and preparers of financial statements and regulators. They provide input to and assist the IAASB by advising on its work program, including project priorities, and offering technical advice on projects as items evolve and on other matters of relevance to the IAASB's activities.

Over the past year, the Chairman of the CAG has brought the representation of organizations in the membership of the CAG to 25 - adding new members so that it could harness the views of a wider constituency of stakeholders, both geographically and by professional background, in the auditing process. An important feature is the accountability of the IAASB to the CAG: IAASB project task forces are required to consider significant points made in the CAG discussions and respond in writing to the CAG, explaining how the matters raised have been dealt with.

In developing this process, the meetings of the CAG are attended by the leadership of the IAASB and of the relevant task forces. "Since becoming Chairman, I have planned for the opening of the CAG meetings to the public," says David Damant, Chairman of the CAG. "I have already noted the high-level transparency with which the IAASB operates and this step seems essential to me if organizations, which rely on the auditors and the standards they use, want to have confidence in the full standard-setting process."

Opening the CAG meetings to the public will provide organizations other than the CAG member organizations, and the general public, an opportunity to observe the discussions and follow the various points of view put forward. This may assist them in preparing responses to documents issued by the IAASB for public consultation. Attendance at the CAG meeting can also help individuals or organizations to better understand how the public interest is represented in the development of international auditing and assurance standards.

John Kellas, Chairman of the IAASB, emphasizes: "The CAG is an integral and important part of the IAASB's formal process of consultation. This step further enhances the transparency of that process."

In addition to the May 2006 meeting, the CAG will meet September 11-12 in Toronto. The meeting venues and a registration form to be completed by public observers are available on the IAASB website. The agenda and material for each meeting will be posted to this website two weeks in advance of the meeting.

Notes: IAASB Consultative Advisory Group

The IAASB CAG is independent of the International Federation of Accountants (IFAC). A list of the CAG member organizations as at December 31, 2005 is attached to this press release. The objective and the scope of activities of the CAG, with the rules for membership, and operating procedures are set out in its terms of reference, which are available on the IAASB website.

International Auditing and Assurance Standards Board

The objective of the IAASB, an independent standard-setting board within IFAC, is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession.

Public Interest Oversight Board

The international Public Interest Oversight Board (PIOB) for accountancy, established in 2005, oversees IFAC's public interest activities with the objective of increasing the confidence of investors and others that such activities, including the setting of standards, are properly responsive to the public interest. The PIOB oversees the activities of the IAASB and of the CAG and, as one element of this oversight, establishes the criteria for their due processes and working procedures. The opening of the CAG meetings to the public is in line with these criteria. 

IAASB Consultative Advisory Group Members (As at December 31, 2005)

• Asian Financial Executives' Institutes
• Basel Committee on Banking Supervision
• CFA Institute
• Eastern, Central and Southern African Federation of Accountants
• European Commission
• European Federation of Accountants and Auditors for SMEs
• European Financial Executives' Institutes
• Fédération des Experts Comptables Européens
• Foundation Institute Capixaba of Research in Accounting, Economy, and Finance
• Information Systems Audit and Control Association
• Institute of Internal Auditors
• Institute of International Finance
• International Accounting Standards Board
• International Actuarial Association
• International Bar Association
• International Corporate Governance Network
• International Organization of Securities Commissions
• International Organization of Supreme Audit Institutions
• Islamic Financial Services Board
• Japan Securities Dealers Association
• National Organization for Financial Accounting and Reporting Standards in Russia
• North American Financial Executives' Institutes
• United Nations Conference on Trade & Development
• World Bank
• World Federation of Exchanges

I am pleased to have been invited to today's roundtable and to have an opportunity to present the perspective of the Public Interest Oversight Board on regulatory and practical challenges in achieving quality implementation of financial reporting and auditing standards.

It is a great pleasure to be able to represent the International Auditing and Assurance Standards Board (IAASB) in Beijing today. I should like to express my appreciation of the confidence shown in the International Standards on Auditing (ISAs) by the decision of China to accelerate convergence with the ISAs; and my admiration for the way in which the CICPA has made progress in response to that decision. A similar decision has been taken by the European Union, which will shortly be going through the process of endorsing the ISAs. And there are many other countries who have similar policies.

At IAASB, we need to ensure that we write ISAs that can be adopted in jurisdictions with such different legal systems, histories and cultures. We do this, in part, by having a sound and transparent process for the development of the ISAs.