The Monitoring Group (MG) has issued a public consultation on the governance arrangements for standard setting. IFAC recognizes the importance of ongoing review and dialogue to enhance these governance arrangements, and we welcome the opportunity to respond to this consultation.

IFAC encourages all key stakeholders and interested parties to consider responding to the MG consultation.

The updated second edition of this multi-part checklist  contains a new standalone section on environmental management. Other sections include financial tasks, strategic management tasks, and regulatory requirements, among other areas. The checklist is meant primarily for small- and medium-sized practices (SMPs), as a marketing or diagnostic tool to help them determine the advice a small business client may need, and also to help them in managing their own businesses. 

The International Auditing and Assurance Standards Board (IAASB) today released its 2011 Annual Report, Foundations for the Future.

The annual report highlights the IAASB’s work in the public interest to strengthen audits globally and build robust standards for audit, assurance and related services, and its commitment to enhance the communicative value and relevance of auditor reporting.

The report covers new and enhanced international standards issued by the IAASB, and draws attention to the IAASB’s new guidance material and implementation support.  It also spotlights IAASB’s continual outreach activities, efforts to maintain strong platforms for dialogue with stakeholders, and to promote the adoption and effective implementation of the clarified International Standards on Auditing (ISAs).

“In 2011, the IAASB continued building on the clarified ISAs. It has explored many new and challenging auditing topics, from auditor reporting and financial statement disclosures to new pronouncements on auditing financial instruments and using the work of internal audit functions.  Our work has been propelled by the global financial crisis and the renewed importance of strong financial infrastructures to support financial stability,” said IAASB chairman Prof. Arnold Schilder. “Our efforts have also extended to new standards supporting other assurance and related services engagements, particularly those of relevance to practitioners serving the needs of smaller entities. I am pleased how proactive the board has been in helping to address a number of the important issues facing the profession and its many stakeholders today, while laying the foundation for further progress in the future,” added Schilder.

The annual report details over 100 outreach activities undertaken during 2011, including liaisons with regulators and investor groups whose input is critical to the future of auditing. It includes a report from Prof. Linda de Beer, the chairman of the IAASB Consultative Advisory Group (CAG), which outlines the work of the CAG in providing input to the IAASB.

The 2011 IAASB annual report can be downloaded at www.iaasb.org.

 
About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by IFAC.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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Published in the Institute of Certified Public Accountants of Uganda (ICPAU)'s Journal Today's Accountant

The International Federation of Accountants (IFAC) values the opportunity to comment on the public consultation paper issued by Eurostat on February 15, 2012, on the suitability of International Public Sector Accounting Standards (IPSASs) for EU Member States.

This Companion Manual provides member bodies and other professional accountancy organizations with guidance on how they can make the best use of the SMP Committee's four implementation guides, including adapting, translating, or incorporating the Guides into CPD courses and/or training programs. 

Download the related Guides:

In a letter submitted this month, the International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, urged the G-20 Deputies and Finance Ministers at their April 2012 meeting in Mexico to take action to encourage governments to seriously address the quality of public sector financial management systems and institutions. The letter, which is a follow-up to previous submissions to the G-20 in 2009, 2010, and 2011, focuses solely on public sector financial management, transparency, and accountability.

In March this year IFAC convened a seminar titled The Sovereign Debt Crisis, a Matter of Urgency―from Lessons to Reform, which included presentations, debates, and discussion involving key decision makers, politicians, and public sector finance management leaders[1]. Outcomes from the seminar included the identification of the compelling and urgent need for governments to address seriously the quality of public sector financial management systems and institutions. There was a call for the adoption of accrual accounting and budgeting to better measure and manage fiscal positions; noting that the current crisis emphasized the deficiencies associated with cash-based arrangements. A common theme that emerged was that, in many countries, the risks associated with the poor fiscal measurement and management exposed by the sovereign debt crisis are amplified by the fiscal risks associated with the aging population.

Urgent and fundamental work is needed to determine the nature of institutional change required in public sector financial management, transparency, and accountability

The four key recommendations in the letter are in line with IFAC’s mission to contribute to the development, adoption, and implementation of high-quality international standards; and by doing so, contribute to the development of strong international economies.

• IFAC recommends that the G-20 facilitate urgent and fundamental work, to be conducted or commissioned by the Financial Stability Board (FSB), to consider the nature of institutional changes that are needed in public sector financial management to protect the public and investors in government bonds.
• IFAC encourages the G-20 to make explicit that the FSB’s role encompasses public sector arrangements, as part of its aim "to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies". In acknowledging the importance of the public sector as part of the FSB’s role, IFAC encourages the establishment of a working group within the FSB architecture, which is specifically tasked with examining enhanced public sector financial reporting, transparency and accountability.
• IFAC recommends that the G-20 actively encourage and facilitate the adoption of accrual-based accounting by governments and public sector institutions, which promotes greater transparency and accountability in public sector finances, and allows for   monitoring of government debt and liabilities for their true economic implications.
• IFAC recommends that the G-20 encourage FSB to include International Public Sector Accounting Standards (IPSASs) as a set of standards key for sound financial systems and deserving of timely implementation.

“For the last ten years IFAC has consistently promoted the need for better financial reporting and financial management in the public sector. The sovereign debt crisis has given rise to a very significant number of policy developments at an international level, but this issue has yet to be adequately addressed. The use of IPSASs by governments worldwide will improve the quality of financial information reported by public entities, which is critical for investors, taxpayers, and the general public,” said IFAC Chief Executive Officer Ian Ball.

The letter to the G-20 with the full recommendations is posted on the IFAC website.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, welcomes the Spanish translation of the Handbook of International Standards on Auditing and Quality Control.

This single Spanish translation is the result of a two-and-a-half-year-long collaborative effort by Instituto de Censores Jurados de Cuentas de España (ICJCE) and Instituto de Contabilidad y Auditoría de Cuentas, and a review committee led by Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE), with representatives from IFAC member bodies in Bolivia, Chile, Colombia, Costa Rica, Mexico, Panama, Paraguay, and Uruguay, and other key stakeholders.

The translated publication includes an unofficial Table of Equivalencies showing differences between terminology used in Spain and that commonly used in Latin America. It has also been reviewed by the Directorate General of Translations (DGT) of the European Commission for its acceptability in the European Union.

According to Rafael Cámara, president of ICJCE, “ICJCE is especially delighted with the publication and would like to congratulate all those involved. This publication represents the first time a Spanish translation of these high-quality international auditing standards has been published in Spain, and is the culmination of several years of work.”

Fermín del Valle, former president of IFAC, said, “This publication is indeed a significant milestone and will be of great benefit to professionals in Latin America. Spanish is a significant world language, spoken in Spain as well as in some 20 Latin American countries. Many Latin American countries have plans to adopt the International Standards on Auditing and Quality Control, and availability of the Spanish translation will be essential in this regard.”

Ian Ball, IFAC chief executive officer, added, “This project is an excellent example of cooperation between IFAC member bodies for the benefit of the global accounting and auditing profession. IFAC is extremely grateful to all those who have contributed resources and efforts to this very important publication. This Spanish translation represents an essential step in furthering the adoption and implementation of high-quality international auditing and quality control standards in the public interest.”

IFAC member bodies are working together on a number of related projects. A cooperation agreement was recently signed between ICJCE, FACPCE, and Instituto Mexicano de Contadores Públicos to publish a single Spanish translation of the Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants. The final translation is expected to be published on the IFAC website in 2012. A draft memorandum of understanding between these three IFAC member bodies has also been prepared with the objective of collaborating to achieve longer-term, sustainable processes for a single Spanish translation of the international standards and other IFAC publications.

The translation was published in Spain by ICJCE and in Latin America by FACPCE (Argentina). Contact ICJCE at auditoria@icjce.es or FACPCE at facpce@facpce.org.ar to purchase printed copies of the translated handbook.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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IFAC has urged the G-20 Deputies and Finance Ministers at their April 2012 meeting in Mexico to take action to encourage governments to seriously address the quality of public sector financial management systems and institutions. The letter, which is a follow-up to previous submissions to the G-20 in 2009, 2010, and 2011, focuses solely on public sector financial management, transparency, and accountability. 

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, has submitted, on behalf of the Private Sector Taskforce (PSTF), an update to the report Regulatory Convergence in Financial Professions and Industries (”2011 Report”), issued to the G-20 Deputies in September 2011.

The PSTF strongly encourages the G-20 to implement all of the 15 recommendations presented in its 2011 Report with a strong emphasis on its first two recommendations, encouraging the G-20 to:

• Continue to focus on regulatory convergence in the financial sector, ensuring that G-20 nations work together to identify and narrow gaps in regulatory practice; and
• Discourage nations from implementing unilateral national regulatory reforms that are inconsistent with international standards and that widen—rather than narrow—the convergence gap.

In support of these recommendations, the update provides a discussion of matters that have arisen since the report was issued―including examples of where regulatory convergence has moved forward, such as the introduction of Legal Entity Identifiers (LEI), adoption of International Financial Reporting Standards (IFRS), and the adoption of International Standards on Auditing (ISAs). The update also notes examples where international regulatory arrangements have become more fragmented.

The update includes additional recommendations regarding public sector financial management and reporting, transparency, and accountability. Over the last year this has been brought into greater focus as a consequence of the sovereign debt crisis, and growing global financial instability. Other important matters are identified which the taskforce suggests will require closer attention by the G-20 in 2013 and beyond.

“It is imperative the G-20 follow through on the PSTF's initial 15 recommendations outlined in the 2011 report.  It is equally important the G-20 evaluate and respond to crucial matters that have become even more critical since the report was issued, such as the sovereign debt crisis. The taskforce and its member organizations would be pleased to assist the G-20 in any way they can,” said IFAC Chief Executive Officer Ian Ball.

The PSTF was established in May 2011 at the request of the Presidency of the G-20.  The initial report provided the G-20 with an analysis of the development of financial policy and regulation, with the aim of facilitating economic stability in the world’s capital markets. The benefits of regulatory convergence were identified, as well as the inefficiencies and associated costs created by regulatory gaps. A range of possible scenarios and associated risks were analyzed and explored, specific examples were given, and a set of recommendations provided.

Coordinated by the International Federation of Accountants, the taskforce includes CFA Institute (CFA I); INSOL International; Institute of International Finance (IIF); International Accounting Standards Board (IASB); International Actuarial Association (IAA); International Corporate Governance Network (ICGN); International Insurance Society (IIS); and International Valuation Standards Council (IVSC).

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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