This article examines the business case for small- and medium-sized practices (SMPs) to develop a business advisory practice and offers tips for getting started.

The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued proposed International Good Practice Guidance, Evaluating and Improving Internal Control in Organizations for public comment. The aim of this guidance is to establish a benchmark for good practice in maintaining effective internal control in response to risk, and help professional accountants in business and their organizations create a cycle of continuous improvement for their internal control systems.

“Strong internal control is both one of the best defenses against business failure, and an important driver of business performance. It mitigates risk and adds sustainable value,” said Roger Tabor, chair of the PAIB Committee. “We looked at the sort of things that can go wrong with the way organizations apply internal controls, and drew out principles that professional accountants in business can apply to support their organizations in avoiding these problems.”

With this proposed publication, the PAIB Committee aims to provide principles-based guidance that focuses on the role of professional accountants in business and how they can support their organizations in evaluating and improving internal control as an integrated part of the organization’s governance, risk management, and internal control systems.This proposed guidance can be implemented regardless of the existing internal control frameworks or standards used, as it deals with those internal control issues that are often unsuccessful because of poor implementation and design.

Professional accountants, their organizations, and other interested parties are encouraged to respond to the proposed guidance to help improve its applicability to professional accountants in organizations of all sizes.

How to Comment
The PAIB Committee invites all stakeholders to comment. To access the exposure draft and submit a comment, visit the PAIB Committee section of the IFAC website at www.ifac.org/paib. Comments on the exposure draft are requested by February 29, 2012.

About the PAIB Committee
The PAIB Committee serves IFAC member bodies and professional accountants worldwide who work in commerce, industry, financial services, education, and the public and the not-for-profit sectors. Its aim is to promote and contribute to the value of professional accountants in business by increasing awareness of the important roles professional accountants play, supporting member bodies in enhancing the competence of their members, and facilitating the communication and sharing of good practices and ideas.

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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Over 60 representatives from 12 Commonwealth of Independent States (CIS) and Baltic countries met with leadership and staff of the International Auditing and Assurance Standards Board (IAASB), the International Accounting Standards Board (IASB), and the International Federation of Accountants (IFAC) to discuss adoption and implementation of International Standards on Auditing (ISAs) and International Financial Reporting Standards (IFRSs).

The event—jointly hosted by IFAC and the International Financial Reporting Standards Foundation (IFRS Foundation) on November 28 and 29, 2011, in London, with the support of the Institute of Chartered Accountants of England and Wales (ICAEW)—was an excellent example of the constructive cooperation in regard to the development, adoption, and implementation of high-quality auditing, assurance, and financial reporting standards. The event involved a series of meetings to discuss areas of particular interest for each country delegation, including translation and adoption of standards and membership of IFAC. These meetings were preceded by a half-day seminar with presentations by key IAASB and IASB members. The event was attended by representatives from Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Latvia, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. Delegates included IFAC member bodies and associates, professional accountancy organizations, national standard setters, ministries of finance, regulators and securities market authorities, national banks, donor organizations, and other key stakeholders. The meeting was convened under the leadership of Mr. David Damant, former chair of the IAASB Consultative Advisory Group and former board member of the International Accounting Standards Committee (predecessor to the IASB).

During his presentation on the IAASB’s activities, Chairman Arnold Schilder spoke about development of audit and assurance standards and audit quality. He said, “In developing high-quality audit standards, achieving effective implementation, and enhancing audit quality, we need to have a strong dialogue and cooperation with users and with regulators.” Prof. Schilder highlighted the constructive relationship between the IAASB and the IASB, and gave examples of this cooperation, including mutual attendance at meetings and commenting on relevant exposure drafts. Prof. Schilder also discussed the activities of the IAASB to respond to the needs of small- and medium-sized entities (SMEs); current initiatives in areas including auditor reporting, reviews and compilation engagements, disclosures, and reporting on greenhouse gases; possible future efforts addressing professional skepticism and proportionality of International Standard on Quality Control 1; and the IAASB’s monitoring of emerging developments on integrated reporting. 

Jon Grant, IAASB member, discussed the adoption and implementation of the ISAs and some key success factors, including effective planning, cooperation with relevant stakeholders, and high-quality translations.

IASB Vice Chair Ian Mackintosh presented an overview of the IASB’s current work plan and its ongoing consultation on the future agenda. Over 100 countries now require or permit the use of IFRSs. Russia is expected to adopt IFRSs in the very near future. Mr. Mackintosh also discussed the recently signed Memorandum of Understanding between the IASB and IFAC, which outlines the bodies’ commitment to continue to work together and further their constructive dialogue.

Wei-Guo Zhang, IASB member responsible for the relationship with the CIS, discussed ongoing IASB projects in the areas of revenue, leases, financial instruments, and insurance. 

Paul Pacter, IASB member, informed the group about the IFRS for SMEs. Released in 2009, this self-contained International Financial Reporting Standard is designed to meet the needs and capabilities of SMEs.  To date more than 70 jurisdictions have adopted the standard.

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 the IASB
The IASB was established in 2001 and is the standard-setting body of the IFRS Foundation, an independent, private sector, not-for-profit organization. The IASB is committed to developing, in the public interest, a single set of high quality global accounting standards that provide high quality transparent and comparable information in general purpose financial statements. In pursuit of this objective the IASB conducts extensive public consultations and seeks the co-operation of international and national bodies around the world. The IASB has 15 full-time members drawn from 11 countries and a variety of professional backgrounds. By July 2012 the Board will be expanded to 16 members. Board members are appointed by and accountable to the Trustees of the IFRS Foundation, who are required to select the best available combination of technical expertise and diversity of international business and market experience. In their work the Trustees are accountable to a Monitoring Board of public authorities. For more information visit www.ifrs.org.

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, today participated in the signing ceremony of MOSAIC: Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration, a memorandum of understanding (MOU) with the international donor community.

MOSAIC sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. The MOU will provide the foundations for increasing the capacity of professional accountancy organizations (PAOs) and improve the quality of financial management systems in emerging economies.

IFAC Deputy President Warren Allen spoke at the event, calling the MOU “a significant step forward” for IFAC, the international donor community, and international organizations. “MOSAIC will help our organizations to align activities, focus on building the capacity of PAOs, and contribute to stronger systems of public financial management.” Speaking after the signing, Mr. Allen said, “Strong PAOs develop and support individual professional accountants in providing high levels of expertise, transparency, and accountability in the production of financial information—this is critical to decision making in both the public and private sectors and, thereby, supporting economic growth and stability.”

In addition to IFAC, signatories to the MOU include the Asian Development Bank, Inter-American Development Bank, African Development Bank, World Bank, and donor agencies from Sweden, Finland, the United States, the United Kingdom, New Zealand, and the GAVI Alliance.

“This MOU fully recognizes the crucial role of the accountancy profession in development and, in particular, the unique contributions and perspectives that IFAC and its members bring to public and private sector financial management issues,” said Joachim von Amsberg, vice president of Operations Policy and Country Services at the World Bank. “High-quality financial management, reporting, accounting, and auditing help attract foreign direct investment, growth and development of the SME sector, enhance transparency and accountability, development and delivery of public services, and enhance the effectiveness of foreign aid. All of these factors contribute to economic growth and, ultimately, poverty alleviation.”

The signing ceremony took place in Busan, South Korea, at the Fourth High Level Forum on Aid Effectiveness, hosted by the Organisation for Economic Co-operation and Development and convened to review global progress in improving the impact and value for money of development aid and to make new commitments to further ensure that aid helps to reduce poverty and support progress in meeting the Millennium Development Goals.

The MOU and a list of signatories are available on the IFAC website as are Mr. Allen’s remarks.

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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On November 30, 2011, IFAC and members of the international development community signed MOSAIC: Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration. MOSAIC sets out the basis for improving cooperation and collaboration between IFAC, international donors, and the international development community. The Memorandum of Understanding will provide the foundations for increasing the capacity of professional accountancy organizations and improve the quality of financial management systems in emerging economies.

The signing ceremony brought together a variety of interests, exhibiting the quality of mutual partnership intended by the wider High Level Forum (from which the New Global Partnership for Effective Development Co-operation emerged). There was a real sense of a deep understanding of the role and value of the MoU to effective development and to effective cooperation between interested parties.

Brian Atwood from the OECD DAC spoke eloquently about the significance of the profession to development across both the public and private sectors and its place in essential infrastructure. He was joined by Warren Allen from IFAC (speech attached below) and Joachim von Amsberg from the World Bank who echoed the importance of this step for both the profession and development partners.

Fredson Yamba from the Zambian Treasury spoke movingly about the rapid growth of a high quality accountancy profession following the formation of the Zambian Institute 30 years ago and its essential place both in government and in the private sector. He was followed by Terence Nombembe who highlighted the value of the parallel MoU which the donor community has with INTOSAI for strengthening supreme audit institutions around the world.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, last week held its 34^th Ordinary Council Meeting in Berlin, Germany. As part of the meeting, IFAC held its annual seminar—which this year focused on Accounting for Crisis: Public and Private Sector Perspectives.

The seminar featured high-profile speakers from organizations including the World Bank, EUROSTAT, the European Court of Auditors, the New Zealand Treasury, and the Chartered Institute of Public Finance and Accountancy. The sovereign debt crisis was the focus of the seminar, with discussions held also on financial management for natural disasters, and public sector accounting.

“Transparency and accountability was one of the key demands of the French Revolution, as well as the key demand of the protesters in the Arab Spring,” commented Prof. Dr. Andreas Bergmann, chair of the International Public Sector Accounting Standards Board, during the seminar.

Ian Ball, chief executive officer of IFAC, reminded the audience that, as early as 2007, IFAC stated that it “is concerned that the standards and regulations governing sovereign issuers are not of sufficient quality to protect investors and ensure the stability of capital markets.”

Speakers focused on government accountability to the financial markets; the need for a common language for fairly describing and assessing the fiscal position of a public entity; the potential of sovereign securities being targets of market abuse, such as insider trading and market manipulation; and the fact that developed countries—not just developing countries—need to make changes.

IFAC is planning a follow-up seminar—The Sovereign Debt Crisis, a Matter of Urgency―from Lessons to Reform—March 19-20, 2012, in Vienna, Austria. The seminar so far has 14 confirmed speakers, including: Vincenzo LaVia, World Bank Group; Göran Persson, Former Prime Minister of Sweden; James Turley, Ernst & Young; Nicolas Véron, Peterson Institute for International Economics; and Hon. David Walker, Comeback America Initiative and Former Comptroller General of the U.S.

“One of the vital features of IFAC is our ability to bring together ideas and insights from 167 member bodies from every region of the world,” said Göran Tidström, president of IFAC. “These presentations and discussions regarding a critical current issue—the sovereign debt crisis and the need for transparent and reliable accounting in the public sector—are an essential factor in forming our collective voice and striving to improve global financial stability, in the public interest.”

Highlights from the Council meeting will be accessible on IFAC’s website in the coming weeks.

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 Accounting Standards Board (IASB) and the International Federation of Accountants (IFAC) announced today an agreement to strengthen their cooperation in developing private and public sector accounting standards.

The IASB is responsible for the development and promulgation of International Financial Reporting Standards (IFRSs), required or permitted for use by companies in more than 100 countries. IFAC supports the independent International Public Sector Accounting Standards Board (IPSASB), which is responsible for developing International Public Sector Accounting Standards (IPSASs). IPSASs are used by an increasing number of public authorities, including national and local governments, agencies and regulatory bodies from around the world, and by many international organizations.

The boards have worked together in the past: many IPSASs are primarily drawn from IFRSs, and the agreement, in the form of a Memorandum of Understanding (MoU), reflects the IASB’s and IFAC’s shared conviction that the transparency provided by high-quality financial reporting standards contributes significantly to the effective functioning of capital markets and sound economic growth. The agreement represents a further commitment to strengthen the cooperation between the two boards, with a view to ensuring greater consistency in their respective standard-setting activities.  

The MoU also acknowledges the ongoing working relationship between the IASB and the International Auditing and Assurance Standards Board (IAASB), which is also supported by IFAC. As part of this relationship, the IAASB seeks to advise the IASB on issues surrounding verifiability and auditability of proposed accounting standards.

The agreement is consistent with the conclusions of the IFRS Foundation Trustees’ strategy review, which called for greater interaction between the IASB and other accounting standard-setting authorities.

Commenting on the agreement, Hans Hoogervorst, Chairman of the IASB, said, “The ongoing financial crisis has shown the importance of transparency in financial reporting by both private and public sector entities. This agreement strengthens the already close ties between the IASB and IFAC  and will serve as a platform for further cooperation.”

IFAC Chief Executive Officer Ian Ball said, “The sovereign debt crisis has exposed the risk to financial stability from poor quality financial reporting by governments, and demonstrated that transparency is a prerequisite for confidence. International Public Sector Accounting Standards are the benchmark for financial reporting in the public sector and the means for governments to signal their commitment to transparency. This agreement accelerates the existing cooperation between the two boards and enhances the IPSASB’s ability to continue to develop high-quality standards.”

The MoU is available here.

About the IASB
The IASB was established in 2001 and is the standard-setting body of the IFRS Foundation, an independent, private sector, not-for-profit organisation. The IASB is committed to developing, in the public interest, a single set of high quality global accounting standards that provide high quality transparent and comparable information in general purpose financial statements. In pursuit of this objective the IASB conducts extensive public consultations and seeks the cooperation of international and national bodies around the world. The IASB has 15 full-time members drawn from 11 countries and a variety of professional backgrounds. By 2012 the Board will be expanded to 16 members. Board members are appointed by and accountable to the Trustees of the IFRS Foundation, who are required to select the best available combination of technical expertise and diversity of international business and market experience. In their work the Trustees are accountable to a Monitoring Board of public authorities. For more information visit www.ifrs.org

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, has issued its Notice of the Call for Nominations to IFAC Boards and Committees for 2013.

For the first time, all vacancies on the public interest activity standard-setting boards* are open for nominations by the public. This change is due to IFAC’s efforts to ensure a transparent approach to filling available positions, while also achieving gender, regional, and professional balance, and is in response to the Monitoring Group’s 2010 report regarding the IFAC Reforms.

Both the Notice of the Call for Nominations and its companion guide, Developing a Nominations Strategy, are designed to help IFAC stakeholders identify the most qualified person for nomination to each available position on the boards and committees. These in-depth documents, located on the IFAC website, contain strategic and practical advice for nominating organizations and other individuals, which allow them to make more informed decisions in their selections and to understand the requirements and expectations of the nominees.

Each year, approximately one-third of the 155 positions on the boards and committees have openings, though for some of those positions serving members may be reappointed. For more information about the Nominating Committee, its due process, or for guidance in selecting the best candidate, please visit www.ifac.org/about-ifac/structure-governance/nominating-committee.

The official Call for Nominations for IFAC Boards and Committees for 2013 will be issued on January 15, 2012, and nominations may be submitted from January 15 to March 15, 2012. All applications should be submitted electronically via IFAC’s nominations database; instructions are provided on page five of the Call for Nominations.

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.

* The public interest activity standard-setting boards include the International Accounting Education Standards Board, the International Auditing and Assurance Standards Board, and the International Ethics Standards Board for Accountants.

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, today announced at the IFAC Council meeting in Berlin, Germany, that five new members have been appointed to the IFAC Board:  Ms. Rachel Grimes, Mr. Ahmadi Hadibroto, Mr. Ganapathy Ramaswamy, Mr. Makoto Shinohara, and Mr. Masum Turker. The IFAC Council also re-elected Mr. Steven Vieweg for a second term of service.

These appointments bring additional diversity and balance with respect to gender, geographical region, and professional experience.

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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Note to Editors – IFAC Board Members November 2011-November 2012:

Göran Tidström (President)
Warren Allen (Deputy President)
Jelil Bouraoui, Tunisia
Ramon Casals, Spain
Kevin Dancey, Canada
Ingrid Doerga, Netherlands
Ana Maria Elorrieta, Brazil
Rachel Grimes*, Australia
Ahmadi Hadibroto*, Indonesia
Robert Harris, United States
Robert Hodgkinson, United Kingdom
Japheth Katto, Uganda
Olivia Kirtley, United States
Norbert Pfitzer, Germany
Jacques Potdevin, France
Ganapathy Ramaswamy*, India
Marta Rejman, United Kingdom
Roberto Resa, Mexico
Makoto Shinohara*, Japan
Masum Turker*, Turkey
Steven Vieweg**, Canada
Zhiguo Yang, China

* New IFAC Board members as of November 2011
** IFAC Board member reappointed for a second term in November 2011

The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, today presented the IFAC International Gold Service Award to Sir David Tweedie and Stephen Zeff. The awards were presented at IFAC’s annual Council Meeting in Berlin, Germany, by Göran Tidström, president of IFAC.

The IFAC International Gold Service Award recognizes outstanding contributions to the accountancy profession.

In his remarks, Mr. Tidström highlighted Sir David Tweedie’s substantial contributions to convergence and to restoring confidence in financial reporting in the wake of the global financial crisis. In particular, in his role as chairman of the International Accounting Standards Board (IASB), he was tireless in promoting the adoption and implementation of International Financial Reporting Standards (IFRS) as the first truly global, high-quality set of accounting standards. He led the IASB during the implementation of IFRS by the European Union in 2005 and the development and publication of IFRS for Small- and Medium-Sized Entities (SMEs) in 2009. His work has helped improve accounting practices around the world, especially in countries where there is no tradition of accounting standards.

Tidström also highlighted the important contributions made by Stephen Zeff, a professor at Rice University, to the understanding of how the accounting profession, and financial reporting in particular, has developed internationally in recent decades. Zeff is a leading international expert on the history of financial reporting, and his historical perspective reflects several themes, among them the historical development of the standard-setting process, the evolution of accounting thought, and the maturing of the profession and practice of auditing. His research and published work addressing the unique problems and challenges confronting the accountancy profession has contributed greatly to the profession’s development worldwide.

“I am honored to present the IFAC International Gold Service Award to Sir David Tweedie and Stephen Zeff,” said Göran Tidström. “Their dedication and achievements have strengthened the profession internationally and exemplify IFAC’s vision: that the global accountancy profession is recognized as a valued leader in the development of strong and sustainable organizations, financial markets, and economies.”

About the IFAC International Gold Service Award
The IFAC International Gold Service Award was created by the IFAC Council in 2010 to recognize outstanding individual contributions to the accountancy profession. 

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. It 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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