The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 125 countries, today released revised versions of Policy Position Paper 1, Regulation of the Accountancy Profession, and Policy Position Paper 3, International Standard Setting in the Public Interest.

“In addition to working toward the development and acceptance of high-quality global professional standards, IFAC is committed to contributing to and shaping the debate about appropriate regulatory arrangements for international standard setting and regulation of the accountancy profession,” said Chief Executive Officer lan Ball.

Policy Position Paper 1, Regulation of the Accountancy Profession, was first issued by IFAC in December 2007. The revised paper includes a new section titled “Current Regulatory Environment.” The section highlights the importance of global regulatory convergence, including the adoption and implementation of high-quality standards. It describes recent developments in regulation and makes reference to the Independent Forum of Independent Audit Regulators (IFIAR) Core Principles. Lastly, the revised Policy Position Paper 1 includes a description of what would typically be included in shared regulation of auditing at a national level.

Policy Position Paper 3, International Standard Setting in the Public Interest, was issued by IFAC in December 2008. The revised and updated paper describes how current governance arrangements and independent standard-setting boards supported by IFAC operate in the public interest and address the need for legitimacy, transparency, and performance. It further includes discussion of the 2010 Monitoring Group (MG) review.

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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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IFAC Staff members recently visited Beirut, Lebanon on the invitation of the Lebanese Association of Certified Public Accountants (LACPA) to educate its Board of Directors and membership following recent changes in leadership.

IFAC staff held a number of meetings with LACPA leadership, general membership, and key counterparts of LACPA. Most importantly, IFAC Staff held two five-hour meetings--the first meeting with the Board of LACPA. This meeting covered not only the details of the SMOs, but included a working session for the Board, which identified and considered best practices and potential solutions which may facilitate LACPA compliance with IFAC SMOs and the finalization of an Action Plan.

The second meeting worked to raise awareness of the importance of the SMOs and to garner support among the general membership for the need for reform in-line with IFAC SMOs. One hundred and twenty participants attended this meeting to hear a formal powerpoint presentation on the SMOs and participate in an open discussion forum focused on LACPA’s leadership proposed plans to address areas of weakness.

This paper outlines the rationale for the regulatory arrangements put in place for setting international standards for auditing and assurance, ethics, and accounting education; arrangements in which responsibility is shared between the public sector and the private sector. Current arrangements for international standard setting, which encompass a combination of public and private sector roles, provide a structure and process that operate and are seen to operate in the public interest, in a context in which there are needs for legitimacy, independence, transparency, performan

High-quality performance by professional accountants benefits the economy and society by contributing to the efficient allocation and management of resources in both the private and public sectors and to the operation of financial and capital markets, and through both of these to the production of goods and services.

The PAO Development Committee, in coordination with the Saudi Organization for Certified Public Accountants and with the generous support of the Institute of Chartered Accountants in England and Wales, held the Middle East North Africa (MENA) Professional Accountancy Organization (PAO) Development Roundtable Workshop in Dubai, UAE on September 20, 2011.

The workshop brought together PAO representatives from across the Middle East and North Africa to discuss the importance of PAOs in financial sector and economic growth; the importance of IFAC Statements of Member Obligation (SMOs); the role of the IFAC Action Plan process in strengthening PAO strategic planning and development; and the challenges and success factors for the development of PAOs in the region. This event drew 30 participants from 11 national-level PAOs, three local branches of global PAOs, UAE stakeholder organizations, aspiring regional organizations, and the World Bank.