The IAASB has expressed support for the FSB's work in this area, and will be following its progress, in particular as it relates to the IAASB's projects on auditing financial statement disclosures, the auditor's responsibilities relating to other information, the auditor's report, and audit quality.

The IAASB has provided comments on matters raised in the Green Paper that are directly within the remit of the IAASB. The IAASB will be following the progress of the European Commission's consultation on its Green Paper with interest, in particular as the IAASB works to develop its 2012-2014 strategy and work program.

The IAASB formalized the process by which it monitors developments in financial reporting standards, one goal of which is to provide the International Accounting Standards Board (IASB) with timely input on aspects of its proposed standards that may have potential verifiability or auditability issues. For this purpose, a working group consisting of IAASB members and technical advisors has been formed to monitor selected IASB projects.

The Public Interest Oversight Board (PIOB) has confirmed a number of new and reappointed members of the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board supported by the International Federation of Accountants (IFAC). The appointments were recommended by the IFAC Board and are effective January 1, 2011. The PIOB is an independent body that oversees IAASB activities.*

The new members of the IAASB are:

• Jean Blascos (France), a practitioner in a transnational firm;
• Jianshen Chen (China), a practitioner in a large national firm; and
• Merran Kelsall (Australia), a non-practitioner and chair of a national auditing standards setter.

The following members were reappointed for an additional term:

• John Archambault (United States), a practitioner in a transnational firm;
• Jon Grant (United Kingdom), a non-practitioner and staff member of a national audit regulator; and
• Caithlin McCabe (Australia), a practitioner in a transnational firm.

In addition, Diana Hillier was reappointed as deputy chair of the IAASB.

These six new and re-appointed members will work alongside the chairman, Prof. Arnold Schilder, the deputy chair, and the other 10 board members in setting high-quality auditing and assurance standards. In addition to standard setting, the IAASB strives to enhance the quality and uniformity of audit practice throughout the world by promoting the adoption and implementation of its International Standards on Auditing (ISAs).

“These new members are excellent choices for the IAASB,” said IFAC Chief Executive Officer Ian Ball. “In addition to being highly qualified individuals, their appointments maintain the balance of nine practitioners and nine non-practitioners on the board. The appointments also enhance the diversity of the board in terms of gender, regional, and professional balance.”

For more information about the work of the IAASB, visit its homepage at www.iaasb.org.

* Note to Editors
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.

About the IAASB
The IAASB (www.iaasb.org) 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 (www.ifac.org) 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. It is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Public Sector Accounting Standards Board (IPSASB) today released for comment an exposure draft (ED) and two Consultation Papers related to its project to develop a Conceptual Framework for the general purpose financial reporting of public sector entities. The Conceptual Framework is the IPSASB’s key strategic objective for 2010–2012 and is of fundamental importance to the future of global public sector standard setting for at least the next 10–15 years.

Conceptual Framework Exposure Draft 1 (CF-ED1), Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities: Role, Authority, and Scope; Objectives and Users; Qualitative Characteristics; and Reporting Entity, refines the issues highlighted in a Consultation Paper published in 2008 and reflects the IPSASB’s consideration of the responses to that Consultation Paper. CF-ED1 proposes that the objectives of financial reporting should be to provide information for accountability and decision-making purposes. It also proposes that the scope of financial reporting should extend beyond the traditional financial statements to include more comprehensive financial and non-financial information.

The Consultation Paper, Elements and Recognition in Financial Statements, identifies alternative asset and liability-led and revenue and expense-led approaches to financial statements and considers the key characteristics of assets, liabilities, revenue and expenses. It also discusses whether further elements should be defined and examines approaches to the recognition of elements.

The Consultation Paper, Measurement of Assets and Liabilities in Financial Statements, considers the measurement bases that may be appropriate for the elements that are recognized in financial statements. It discusses historical cost, market value, and replacement cost and then examines deprival value as an approach to select the most relevant measurement basis.

Summaries of the Consultation Papers can be found in the “At a Glance” publications, which have been posted along with the Consultation Papers. A staff draft, Key Characteristics of the Public Sector, identifies and provides an overview of some of the main characteristics of the public sector that distinguish it from the private sector and, therefore, have a potential impact on the development of a public sector Conceptual Framework. The IPSASB is not seeking comments on this draft at this time. This document will be further considered by the IPSASB in 2011 and, following approval, will be formally exposed for comment.

“The Conceptual Framework provides the set of principles that underpin the IPSASB’s standard-setting activities over the long term,” said IPSASB Chair Andreas Bergmann. "Given the central role that the Conceptual Framework will play in the IPSASB’s future standard-setting activities, I strongly urge all stakeholders to submit comments on this ED and the two Consultation Papers."

How to Comment
To access the Exposure Draft and Consultation Papers, or to submit a comment, visit the IFAC website at www.ifac.org/Guidance/EXD-Outstanding.php. Comments on the exposure draft and Consultation Papers are requested by June 15, 2011. The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of these documents to their members and employees.

About the IPSASB
The IPSASB (www.ifac.org/publicsector) develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC.

About IFAC
IFAC (www.ifac.org) 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. It is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The International Auditing and Assurance Standards Board (IAASB) welcomes the issuance of the South African Declaration on International Standards of Supreme Audit Institutions (ISSAIs) (the Declaration), resulting from the 20th INCOSAI, the triennial Congress of the International Organization of Supreme Audit Institutions (INTOSAI). Held in Johannesburg last month, the Congress brought together about 500 delegates representing public sector interests.

Part of the Johannesburg Accords summarizing the results of the Congress, the Declaration represents INTOSAI’s endorsement of a framework comprised of a comprehensive set of ISSAIs and INTOSAI guidance on good governance (INTOSAI GOVs). The ISSAIs and INTOSAI GOVs provide guidance to public sector auditors responsible for financial audit, performance audit, and compliance audit, and also address transparency and accountability, quality control, peer review, and internal audit. The Declaration also calls upon INTOSAI members to use the ISSAI framework as a common frame of reference for public sector auditing by implementing the ISSAIs in accordance with their mandate and national legislation and regulations.

This important milestone for INTOSAI is particularly relevant to the IAASB, because the ISSAIs for financial audits include the clarified International Standards on Auditing (ISAs), as issued by the IAASB, along with supplemental guidance referred to as Practice Notes for each of the 36 clarified ISAs, as developed by INTOSAI’s Financial Audit Subcommittee of the Professional Standards Committee (PSC). The IAASB has observer status at INTOSAI’s PSC meetings and assisted in the development of the Practice Notes.

“The IAASB strongly believes that the ISAs are right for the public sector, and commends INTOSAI’s work to ensure that public sector auditors have the guidance they need to apply the ISAs in their financial audits,” said Prof. Arnold Schilder, chairman of the IAASB. “Much like the completion of the IAASB’s Clarity Project,* the finalization of the ISSAIs represents a significant achievement, and the adoption and implementation of the ISSAIs will contribute to enhanced quality in public sector auditing.”

For more than six years, the IAASB and INTOSAI have maintained a mutually beneficial relationship. In addition to the IAASB’s participation in the PSC, INTOSAI is represented on the IAASB, and INTOSAI experts serve on IAASB task forces as appropriate to provide public sector input into the development of the IAASB’s ISAs. Noted Jim Sylph, IFAC’s executive director, professional standards, “Our partnership with INTOSAI enables us to incorporate public sector input into the development of our ISAs, and we look forward to continuing this relationship as both of our organizations promote the adoption of a single set of standards for financial audits.”

*The Clarity Project, completed by the IAASB in March 2009, resulted in the issuance of 36 ISAs and one International Standard on Quality Control in a new style that is easier to understand, translate, and implement. Approximately half of the ISAs also contain substantive new requirements intended to improve practice in a variety of respects. The new set of clarified ISAs is now in effect for 2010 year-end audits.

About the IAASB
The IAASB (www.iaasb.org) 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 (www.ifac.org) 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. It is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

About INTOSAI
INTOSAI (www.intosai.org) operates as an umbrella organization for the external government audit community. For more than 50 years it has provided an institutionalized framework for supreme audit institutions to promote development and transfer of knowledge, improve government auditing worldwide and enhance professional capacities, standing and influence of member SAIs in their respective countries. At present, INTOSAI has 189 Full Members and 4 Associated Members.