This information paper features interviews with 10 senior-level professional accountants in business on their experiences and views on establishing effective internal control systems.

The International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), has issued an exposure draft proposing to strengthen three components of the independence requirements contained in the IFAC Code of Ethics for Professional Accountants (the Code).

In December 2006, as a result of a comprehensive review, the IESBA issued an exposure draft proposing revisions to the existing independence requirements contained in the Code. In that exposure draft, the IESBA indicated that there were three areas that the IESBA would revise in a future exposure draft:

• Provision of internal audit services to an audit client;
• Independence implications related to the relative size of fees received from one assurance client; and
• Contingent fees for services provided to assurance clients.

The IESBA is now seeking comment from interested parties on these three matters.

"This second exposure draft addresses the three additional elements that the IESBA considers are appropriate to protect the public interest," states Richard George, IESBA Chair. "The IESBA intends to issue the revisions from this exposure draft in mid 2008 simultaneously with the revisions to the matters that were exposed in December 2006."

How to Comment
Comments on the exposure draft are requested by October 15, 2007. The exposure draft 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 IESBA Senior Technical Manager 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 on IFAC's website.

About the IESBA and IFAC
The IESBA develops ethical standards and guidance for use by professional accountants. It encourages member bodies of IFAC to adopt high standards of ethics for their members and promotes good ethical practices globally. The Public Interest Oversight Board oversees the activities of the IESBA and, as one element of that oversight, establishes the criteria for its due process and working procedures.

Founded in 1977, 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), is seeking comment from IFAC member bodies, regulators, national ethical standard setters, accountants in professional practice and accountants in business and other interested parties on an exposure draft of its Strategic and Operational Plan for the period 2008-2009.The International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), is seeking comment from IFAC member bodies, regulators, national ethical standard setters, accountants in professional practice and accountants in business and other interested parties on an exposure draft of its Strategic and Operational Plan for the period 2008-2009.

The objective of the IESBA is to serve the public interest by setting high quality ethical standards for professional accountants and by facilitating the convergence of international and national ethical standards, thereby enhancing the quality and consistency of services provided by professional accountants. In considering which new projects and activities should be undertaken, the IESBA conducted a survey of interested parties, including accountants in public practice (from large and small firms), accountants in business, regulators, IFAC members and associates, ethical standard setters and academics, to solicit views on matters that the IESBA should consider in the next few years to achieve its objective.

"In addition to suggestions for specific projects, there was a strong message from the approximately 120 survey respondents that the IESBA should place more emphasis on our convergence objective," states Richard George, IESBA Chair. "The IESBA, therefore, plans to hold four regional forums, starting in late 2008, with the objective of gaining a better understanding of the steps necessary to facilitate convergence of international and national ethical standards and achieve greater global acceptance of the Code."

How to Comment
Comments on the exposure draft are requested by August 31, 2007. The exposure draft 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 IESBA Senior Technical Manager 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 on IFAC's website.

About the IESBA and IFAC
The IESBA develops ethical standards and guidance for use by professional accountants. It encourages member bodies of IFAC to adopt high standards of ethics for their members and promotes good ethical practices globally. The Public Interest Oversight Board oversees the activities of the IESBA and, as one element of that oversight, establishes the criteria for its due process and working procedures.

Founded in 1977, 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

In recent years, accountants in the external auditing profession have started assuring corporate sustainability reports. But are accountants adequately trained for this challenge, and do extant standards provide sufficient guidance? This presentation outlines current developments in external assurance on sustainability.

The International Federation of Accountants (IFAC), the World Bank and the Inter-American Development Bank undertook a significant collaborative effort last week by organizing an event in Mexico City titled Accounting and Accountability for Regional Economic Growth (Contabilidad y Responsabilidad para el Crecimiento Económico Regional or "CReCER" in Spanish). Over 450 individuals, including representatives of the accountancy profession, governments, the donor community, and academia from 27 Latin American and Caribbean countries as well as 16 other countries participated in this event.

"This conference was a landmark event for the Latin American and Caribbean region. Never before have public and private sector representatives from the accounting and auditing profession come together under one roof to discuss the issues facing the region," states IFAC President Fermín del Valle.

Participants indicated that combating poverty and developing stable economies are the two fundamental and interrelated challenges facing Latin American and Caribbean nations. Discussions focused on achieving quality financial reporting in the private and public sectors, the needs of the accountancy profession in the region, the role of the government in accountancy and accountancy development, and the importance of sustaining good governance and ethics.

"The conference resulted in a unanimous commitment by international stakeholders to support the improvement of financial reporting and to actively foster economic development in the region. We also heard a clear commitment from participants for convergence to international standards," added Mr. del Valle.

Other outcomes of the meeting included agreement on the following:

• The need for increased input from the Latin American and Caribbean region into international standard setting;
• The development of a single set of high quality Spanish translations of all international standards; and
• Collaboration among countries in the region as well as sustaining relationships with regional and international partners as a requisite for success.

IFAC's Developing Nations Committee and staff will be considering the outcomes of the conference as it advances its work program in the region. Copies of all presentations made at CReCER will be available here shortly.

Founded in 1977, 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC 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.

Good afternoon ladies and gentlemen.

Before I start I would just like to say what a privilege and a pleasure it is for me to be able to participate on this panel. I wish to focus my comments on the work of the IFAC Small and Medium Practices (SMP) Committee that I chair in helping meet the needs of SMPs in this region.

Let me first articulate what my committee suspects are the main issues confronting SMPs in Latin America and the Caribbean.

First, the issue of the relevance of international standards of accounting, assurance, education and ethics to SME/SMP. Some believe these standards are written primarily with large entities in mind resulting in over-regulation of SME/SMP. For example, we fear new auditing standards may undermine the viability of SME audits and SMPs.

Secondly there is the issue of the capacity of SMP/SME to efficiently implement, and comply with, these standards. Small practitioners lack specialist in-house resources and suffer from professional isolation.

Thirdly SMPs are faced with acute problems - increasing competitive pressures, a decreasing amount of staple regulatory work, and operational problems such as staff recruitment and retention and effective networking.

The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA), both standard-setting bodies within the International Federation of Accountants (IFAC), seek to fill a key technical manager position. The technical manager will devote approximately 50 percent of his/her time to the activities of each of the boards, which are made up of volunteer members from around the world. The technical manager's key responsibilities will include conducting project research; interacting with standard setters, IFAC members and associates around the world; and developing, editing and overseeing publication of IAASB and IESBA exposure drafts, standards and guidance. Other responsibilities include:

• Drafting project proposals and presenting them to the IAASB/IESBA and, as appropriate, to task forces;
• Attending IAASB/IESBA meetings as well as task force meetings, participating in discussions and recording discussions and decisions;
• Preparing IAASB/IESBA meeting agendas and papers and developing articles and speeches; and
• Assisting the Chairman and Executive Director, Professional Standards, in responding to technical and process issues raised by the IAASB Consultative Advisory Group, IESBA Consultative Advisory Group, and the Public Interest Oversight Board.*

The ideal candidate for this position will have a professionally recognized accounting degree or other relevant qualification. An excellent knowledge of issues relating to auditing and ethics, and experience in the standard-setting process is a plus, as is an understanding of the special considerations relating to the audit of multinational entities, small and medium enterprises or public sector entities.

It is anticipated that the successful applicant will work at IFAC's headquarters in New York City. (About 25 days to 35 days per year of international travel are required.)

A complete job description, including additional information concerning preferred background and experience, is available on the IFAC website. Interested candidates should submit their résumé (CV) by July 31, 2007 to Dawn Tishkoff, IFAC Human Resources Manager (jobs@ifac.org).

About the IAASB, IESBA 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 IESBA develops and issues in the public interest high-quality ethical standards and other pronouncements for professional accountants for use around the world. The Public Interest Oversight Board oversees the activities of the IAASB and the IESBA, 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. It is comprised of 155 members and associates in 118 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 of ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high-quality performance by professional accountants in business.

*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 and IESBA, are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.

Good morning ladies and gentlemen. Thank you for participating today in this regional conference for the Caribbean and Latin America on accounting and accountability for regional economic growth.

Together with the World Bank and the Inter-American Development Bank, it is our intention that this conference provide us the opportunity to identify the principal challenges and questions that the region needs to address and, above all, to permit us to identify concrete solutions and, in some cases, to consider collaborative projects that make these solutions viable or more efficient. ** Note: Attached below are the English and Spanish versions of this speech.

Professional accountants in business worldwide will get added assistance from the International Federation of Accountants (IFAC) in the form of new international principles-based good practice guidance. A newly released exposure draft (ED), Preface to IFAC's International Management Accounting Statements and International Good Practice Guidance, developed by IFAC's Professional Accountants in Business (PAIB) Committee, sets out the objective, scope and due process of two new types of guidance: International Management Accounting Statements and International Good Practice Guidance. The PAIB Committee seeks input on the approach to representing good practice to professional accountants in business and the proposed document types.Professional accountants in business worldwide will get added assistance from the International Federation of Accountants (IFAC) in the form of new international principles-based good practice guidance. A newly released exposure draft (ED), Preface to IFAC's International Management Accounting Statements and International Good Practice Guidance, developed by IFAC's Professional Accountants in Business (PAIB) Committee, sets out the objective, scope and due process of two new types of guidance: International Management Accounting Statements and International Good Practice Guidance. The PAIB Committee seeks input on the approach to representing good practice to professional accountants in business and the proposed document types.

Together with the draft Preface, the PAIB Committee has released new guidance on developing codes of conduct and has issued an exposure draft of the first International Management Accounting Statement. (See below.)

International Management Accounting Statements and International Good Practice Guidance establish fundamental principles and provide supporting application guidance to reflect good practice. In addition, the new guidance signposts other sources of information, such as those developed by national professional accountancy bodies. The guidance documents may also serve as a leadership tool that professional accountants can use in promoting sound financial and management accounting practices within their organizations.

"The release of the proposed Preface represents the start of a significant work program for the committee," says Edward Chow, Chair of the PAIB Committee. "The new pronouncements will contribute to better decisions in organizations and enhance the level of support to and competence within the global community of professional accountants in business. I encourage professional accountants in business to use these pronouncements to promote good practices in the organizations in which they work."

New Guidance on Developing Codes of Conduct
The PAIB Committee has released the first International Good Practice Guidance, Defining and Developing an Effective Code of Conduct for Organizations. This guidance will assist professional accountants and their organizations in developing and implementing a code of conduct within a values-based culture. It can be downloaded from the IFAC online bookstore at http://www.ifac.org/store. The PAIB Committee welcomes further feedback on this document during the exposure period for the Preface.

Exposure Draft on Project Appraisal Using Discounted Cash Flow
In addition to the above, the PAIB Committee has also issued an ED of a proposed International Management Accounting Statement, entitled Project Appraisal Using Discounted Cash Flow. The proposed International Management Accounting Statement aims to support professional accountants in business in applying and promoting the use of discounted cash flow and net present value to evaluate investments. It sets an international benchmark for using discounted cash flow in project appraisal and provides principles that reflect widely accepted good practice, supported by guidance to facilitate their application. The ED asks for feedback on both the content and approach.

Looking Ahead
Over the next year, the PAIB Committee plans to develop proposed principles-based pronouncements on internal control from a risk management perspective, using cost information effectively, and enterprise governance. The PAIB Committee is also using the proposed International Management Accounting Statement on Project Appraisal Using Discounted Cash Flow to solicit feedback on future topic selections to support this document.

How to Comment
Comments on the proposed Preface and proposed International Management Accounting Statement are requested by September 12, 2007. The EDs may be viewed by going to http://www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org. They may also be faxed to the attention of the PAIB Committee Technical Manager at +1-212-286-9570 or mailed to PAIB Committee Technical Manager 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 IFAC website.

Founded in 1977, 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. The organization, through its independent standard-setting boards, sets international ethics, auditing and assurance, education, and public sector accounting standards. Through its Professional Accountants in Business Committee, IFAC issues guidance to encourage high quality performance by professional accountants in business.

Note to Editors:
Attached to this press release is a questions and answers document developed by the Professional Accountants in Business Committee to explain the rationale for and approach to its new program to develop principles-based good practice pronouncements.

The International Federation of Accountants (IFAC) is inviting all participants in the financial reporting supply chain, including investors and other users of financial reports, standard setters, preparers, auditors, academics, and regulators to complete a global survey designed to obtain information that could strengthen the financial reporting process.The survey, which may be completed through July 6, 2007, is part of an IFAC project designed to analyze the financial reporting supply chain and to develop recommendations to further improve the quality of financial reporting. It can be accessed online in Publications & Resources.

Specifically, the survey seeks the views of those in the financial reporting supply chain on corporate governance, financial reporting, and financial auditing and asks what actions they think will further improve the quality of the financial reporting process. The survey will be complemented with a number of in-depth one-on-one interviews.

"The survey and interviews also seek opinions on the usefulness of financial reports and how these reports might be made more relevant, understandable and reliable. This information is especially valuable as, ultimately, it is the financial reports that influence investors and other stakeholders in their decisions about public companies," states project chair Norman Lyle. Mr. Lyle recently retired as Group Finance Director of Jardine Matheson Holdings Limited in Hong Kong and is a former President of the Chartered Institute of Management Accountants (CIMA) in the United Kingdom, an IFAC member body.

This global initiative will evaluate past recommendations made by IFAC to improve the quality of the various links in the financial reporting supply chain, including those expressed in the IFAC reports, Rebuilding Public Confidence in Financial Reporting: An International Perspective(2003) and Challenges and Successes in Implementing International Standards: Achieving Convergence to IFRSs and ISAs (2004). It will also identify newly emerging issues and innovations and develop proposals to further improve the quality of the financial reporting process. A final report will be issued by the end of the year and will be posted on the IFAC website.

Founded in 1977, 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 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.