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.

This International Good Practice Guidance is designed to assist professional accountants and their organizations to develop and implement a code of conduct in a values-based culture.

Good evening, ladies and gentleman.

I'm very happy to be here with you all this evening. I am sure you will join me in thanking our hosts, the Association of Chartered Certified Accountants (ACCA), for the wonderful dinner this evening. I would like also to thank Allen Blewitt, ACCA's Chief Executive, for the invitation to speak with you this evening.

As indicated in its "European Manifesto," the ACCA shares IFAC's focus on education and training, financial reporting, auditing, small business issues and corporate governance. The manifesto makes an important point that I would like to reiterate: "Forming partnerships is key to shaping the EU's future agenda." In addressing so central an issue as regulation of the profession, I believe that it is vital for IFAC, its 155 member bodies worldwide, and regional organizations like FEE, to work in partnership to shape the agenda. As in so many other matters, collaboration in relation to regulation is essential.

Distinguished guests and dearest colleagues, thank you for the privilege of speaking to you today. This is a great occasion for the Polish accountancy profession: the 100th Anniversary of the Accountants Association in Poland (AAP).

Today's celebration of this institution's centenary of life is an extremely significant event. It is a relevant occasion, especially if you consider all that's happened in the history of the country where this institution has operated during these years.

To enhance the quality and consistency of audits, the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), is continuing to advance its project to clarify its auditing standards. At its meeting in April 2007, the IAASB approved for public comment exposure drafts of proposed International Standard on Auditing (ISA) 200 (Revised and Redrafted), Overall Objective of the Independent Auditor, and the Conduct of an Audit in Accordance with International Standards on Auditing; proposed ISA 250 (Redrafted), The Auditor's Responsibilities Relating to Laws and Regulations in an Audit of Financial Statements; and proposed ISA 500 (Redrafted), Considering the Relevance and Reliability of Audit Evidence. These have all been redrafted in accordance with the IAASB's new drafting conventions designed to enhance the clarity of its pronouncements.

Overall Objective of the Independent Auditor, and the Conduct of an Audit in Accordance with ISAs

The Preface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services (Preface) was reissued in January 2007 to reflect the effect of the new drafting conventions being used for the purposes of ISAs. It contains important statements about the authority of ISAs and the obligations of auditors who follow those standards. Because the amended Preface may not be adopted in certain jurisdictions, the IAASB decided that these statements should be incorporated within the ISAs themselves. Accordingly, proposed ISA 200 (Revised and Redrafted) incorporates the provisions of the amended Preface relevant to ISAs. The proposed ISA also describes the nature of an audit of financial statements and related concepts that provide the basis for a proper understanding of the conduct of an audit, the overall objective of the auditor, and the objectives and requirements stated in the ISAs. "The proposed standard provides a clearer explanation of relevant concepts which should be helpful to auditors and others with an interest in audits and auditing standards. By incorporating the relevant provisions of the Preface into this ISA, we hope to give them greater prominence and to ensure that the obligation of auditors using ISAs to follow all their requirements is directly imposed through the standards themselves," states John Kellas, IAASB Chairman.

Status of the Clarity Project

The proposed ISAs have been drafted in accordance with the IAASB's new drafting conventions. These conventions include the specification of an objective within each ISA and separate sections for requirements and application and other material. With the release of the exposure draft of proposed ISA 200 (Revised and Redrafted), the IAASB has issued a complete list of the objectives to be contained in each ISA for the information of respondents. These are subject to revision as relevant exposure drafts are developed and exposed for comment. The IAASB has now issued four final ISAs drafted in accordance with the new conventions and, including the three just released, 15 exposure drafts of ISAs. The IAASB expects to issue a further 15 exposure drafts this year, and to complete all 34 ISAs as final standards by the end of 2008. As a result of this project, 21 extant ISAs will have been fully revised or updated and redrafted in the last five years and the remaining 11 will have been redrafted in accordance with the new conventions, providing more clarity as to their requirements and thereby improving the consistency of their application. Further information on the Clarity project may be obtained from the IAASB Clarity Status Report.

How to Comment

Comments on the exposure drafts of proposed ISA 200 (Revised and Redrafted) and proposed ISA 500 (Redrafted) are requested by September 15, 2007. The comment period for proposed ISA 500 (Redrafted) is tied to that of proposed ISA 200 (Revised and Redrafted), because it is proposed that the requirement of extant ISA 500 for the auditor to obtain sufficient appropriate audit evidence be transferred to proposed ISA 200 (Revised and Redrafted). Comments on the exposure draft of proposed ISA 250 (Redrafted) are requested by July 31, 2007. The exposure drafts may be viewed by going to http://www.ifac.org/EDs. Comments should be submitted by email to EDComments@ifac.org. They may also be faxed to IAASB ED Comments, at +1-212-286-9570 or mailed to IAASB ED Comments 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.

About the IAASB and IFAC

The objective of the IAASB 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 Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes 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. 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. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business. Further information about IAASB may be obtained from its website: http://www.iaasb.org. The PIOB website address is http://www.ipiob.org.

The International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), has issued a communication on auditors' reports on special purpose audit engagements. The purpose of the communication is to advise auditors that reports for special purpose audit engagements can, with appropriate amendments, be issued in the form of the illustrative report in paragraph 60 of International Standard on Auditing (ISA) 700, The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements. The communication provides additional information in this regard as well as links to the relevant ISAs. The communication can be viewed on the IAASB website.

About the IAASB and IFAC

The objective of the IAASB 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 Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes 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.

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. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

IFACnet, the global, multilingual search engine developed by the International Federation of Accountants (IFAC) and its members, has expanded its resources to address the needs of small and medium accounting practices (SMPs), in addition to professional accountants in business. IFACnet enables SMPs to easily locate information on a wide range of technical, marketing, human resource and other matters, including such topics as succession planning, managing a small firm, staff recruitment and retention, and promoting firm services.

IFACnet has also added three new features to help accountants worldwide stay current on technical, professional and marketplace issues and to make the search engine more user friendly. These include a "Latest News" page with links to a variety of business, management and accounting media and other websites; a search box that enables users to search IFACnet directly from their Internet browser; and a "What's News" section to inform visitors of new IFACnet features and content.

"There are many high quality resources available from within IFAC as well as through collaboration with our members that can help the global accountancy community carry out their professional responsibilities," states Ian Ball, IFAC Chief Executive Officer. "IFACnet's customized search features provide an efficient means to give professional accountants, including SMPs and professional accountants in business, in every part of the world, access to these timely and relevant resources."

Launched in October 2006, IFACnet provides one-stop access to free, high quality guidance, management tools and articles developed by professional accountancy bodies from around the world. Since its launch, IFACnet has attracted nearly 42,000 individuals from more than 190 countries worldwide. Currently, IFAC and twenty-three of its members (see attachment) provide IFACnet with access to information from their websites. In the coming months, new content will continue to be added to IFACnet as it expands the number of participating organizations.

IFACnet can be accessed free-of-charge online and on the websites of participating organizations.

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. 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.

IFACNET PARTICIPATING ORGANIZATIONS
(As of March 30, 2007)

American Institute of Certified Public Accountants
Association of Chartered Certified Accountants
CGA Canada
Chartered Institute of Management Accountants
CMA Canada
Consiglio Nazionale dei Dottori Commercialisti
CPA Australia
Hong Kong Institute of Certified Public Accountants
International Federation of Accountants
Institute of Certified Public Accountants in Ireland
Institute of Certified Public Accountants of Singapore
Institute of Chartered Accountants in Australia
Institute of Chartered Accountants in England & Wales
Institute of Chartered Accountants in Ireland
Institute of Chartered Accountants of India
Institute of Chartered Accountants of Pakistan
Institute of Chartered Accountants of Scotland
Institute of Management Accountants
Japanese Institute of Certified Public Accountants
Koninklijk Nederlands Instituut van Registeraccountants
Malaysian Institute of Accountants
Malta Institute of Accountants
South African Institute of Chartered Accountants
Union of Chambers of Certified Public Accountants of Turkey

The latest compilations of international auditing, ethics and public sector accounting standards are now available in print and electronic formats from the International Federation of Accountants (IFAC). The 2007 editions of the Handbook of International Auditing, Assurance, and Ethics Pronouncements and the Handbook of International Public Sector Accounting Pronouncements can be ordered in print or downloaded in PDF format from the IFAC website at http://www.ifac.org/store. In addition, the 2007 auditing and ethics handbook can be ordered in a fully searchable electronic eComPress version.The latest compilations of international auditing, ethics and public sector accounting standards are now available in print and electronic formats from the International Federation of Accountants (IFAC). The 2007 editions of the Handbook of International Auditing, Assurance, and Ethics Pronouncements and the Handbook of International Public Sector Accounting Pronouncements can be ordered in print or downloaded in PDF format from the IFAC website at http://www.ifac.org/store. In addition, the 2007 auditing and ethics handbook can be ordered in a fully searchable electronic eComPress version.

Auditing and Assurance Handbook
The 2007 Handbook of International Auditing, Assurance, and Ethics Pronouncements contains all pronouncements of the International Auditing and Assurance Standards Board (IAASB) as of December 31, 2006, including the first four International Standards on Auditing redrafted under the IAASB's clarity drafting conventions. The handbook also contains an updated IFAC Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants in July 2006.

The 2007 handbook can be ordered in print for US$120.00 plus shipping. The handbook is also available in an electronic eComPress format that is fully searchable, easy to navigate, and can be annotated by the reader using the unique "Notes" feature. The eComPress handbook can be ordered for US$50.00 or as a package with the print version for US$150.00 plus shipping. Network versions are also available.

Public Sector Accounting Handbook
The 2007 Handbook of International Public Sector Accounting Pronouncements contains all pronouncements of the International Public Sector Accounting Standards Board (IPSASB) as of December 31, 2006 as well as the updated IFAC Code of Ethics for Professional Accountants. The 2007 handbook features several new International Public Sector Accounting Standards (IPSASs) issued in 2006 as well as 11 IPSASs that were revised as part of the IPSASB's project to converge the IPSASs with their related International Financial Reporting Standards where appropriate for the public sector. The public sector handbook is available in print at no charge, except for a US$15.00 shipping cost.

How to Order The 2007 handbooks can be downloaded in PDF format or print and electronic versions can be ordered from the IFAC online bookstore (http://www.ifac.org/Store). You can also place your order by calling IFAC at +1 (212) 471-8722.

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. 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 Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), is seeking comments on an exposure draft (ED) of proposed International Standard on Auditing (ISA) 550 (Revised and Redrafted), Related Parties. The IAASB is also seeking comments on proposed ISA 570, Going Concern, which has been redrafted in the new style designed to enhance the clarity of IAASB pronouncements.

Related Party Relationships and Transactions

The involvement of related parties in major corporate scandals encouraged the IAASB to review its current auditing standard on the subject. Following earlier consultations, the IAASB has decided to re-expose its revised proposals because of the significance of the changes made in response to the consultations. The overall aim of the project is to enhance the auditor's consideration of related parties and related party transactions in an audit of financial statements, establishing an approach that requires the auditor to assess the risks of misstatement and direct audit work accordingly. The proposals in the re-exposure draft are intended to make the auditor's responsibilities clearer, distinguishing those cases where the accounting framework includes disclosure and other reporting requirements, and those where it includes no or inadequate requirements. The exposure draft includes a new definition of a "related party" to serve as a minimum level for the purposes of the audit. It also improves the delineation between the auditor's procedures to identify relevant risks of material misstatement and his or her responses to the assessed risks. The proposed standard also emphasizes the need for the auditor to be aware of related parties and the extent to which they affect the financial statements, even where the financial reporting framework applied in preparing the financial statements does not establish requirements for related parties (or does so inadequately). John Kellas, Chairman of the IAASB, explains: "The proposed standard makes clear that the auditor has three objectives in considering related parties: to obtain sufficient evidence about the required accounting and disclosure of related party information and transactions; to understand how related party transactions and relationships affect the view given by the financial statements; and to identify fraud risk factors arising from related party relationships that may require further consideration."

New Clarity Exposure Draft

As part of its comprehensive program to enhance the clarity of its standards and facilitate convergence, the IAASB has also issued an exposure draft of proposed ISA 570 (Redrafted). The exposure draft forms part of the IAASB's ambitious 18-month program to redraft existing standards and to develop new and revised standards following the new drafting conventions, which were developed after extensive consultation with interested parties, such as the IAASB's Consultative Advisory Group and national auditing standard setters, and public consultation. The new drafting conventions are explained in the Preface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services, which was issued in January 2007. How to Comment Comments on the exposure draft of proposed ISA 550 (Revised and Redrafted) are requested by June 30, 2007. Comments on the exposure draft of proposed ISA 570 (Redrafted) are requested by May 31, 2007. The EDs may be viewed by going to http://www.ifac.org/EDs. Comments should be submitted by email to EDComments@ifac.org. They may also be faxed to IAASB ED Comments, at +1-212-286-9570 or mailed to IAASB ED Comments 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.

About the IAASB and IFAC

The objective of the IAASB 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 Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes 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. 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. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

At its meeting last week in New York City, the Board of the International Federation of Accountants (IFAC) agreed to assist the International Accounting Standards Board (IASB) in obtaining feedback on its proposed International Financial Reporting Standard (IFRS) for Small and Medium-sized Entities (SMEs)through field testing and other means. In addition, it agreed to strengthen collaboration with regional accountancy organizations to encourage greater alignment with the IFAC strategy. The Board also discussed the need to more effectively engage various stakeholders in the convergence process, work more closely with the investment community, proactively address small and medium practice (SMP) and SME issues, and communicate more consistent global messages about the value and integrity of the profession. An approach for translating key sections of the IFAC website was also approved. During the meeting, Professor Stavros Thomadakis, Chairman of the Public Interest Oversight Board (PIOB), commented on the PIOB's progress in overseeing IFAC's public interest activities and expressed its satisfaction to date with the cooperation it is receiving from IFAC and its independent boards. A major portion of the meeting was devoted to strategic planning issues. As part of that process, regulatory, standard setting and business leaders provided insights and views to help shape the Board's priorities and future agenda. Guest speakers were:

• Mark Olson, Chairman of the U.S. Public Company Accounting Oversight Board (PCAOB), who highlighted the importance of standards setters, such as the PCAOB and the International Auditing and Assurance Standards Board, continuing to closely monitor each other's work and agendas;
• Professor Robert Kaplan of the Harvard Business School and co-author of the Balanced Scorecard, who spoke on the implications of the balanced scorecard for enhanced business reporting; and
• Paul Pacter, IASB Director of Standards for Small and Medium-sized Entities, who outlined the proposed IFRS for SMEs.

Among other matters, Mr. Pacter urged all Board members and regional accountancy organizations to encourage responses from their respective constituencies on the proposed standard and perceived challenges to its adoption. IFAC President Fermín del Valle stated, "IFAC is highly supportive of this project and recognizes the considerable progress made. To ensure that the final standard meets the needs of the SMP/SME marketplace, it is crucial that IFAC and its members help the IASB seek out and capture the views of all relevant constituents, primarily SMEs, SMPs, and users of SME financial statements." The Board meeting followed a meeting with more than 30 chief executives of national accounting organizations in over 25 countries, which was designed to bring those organizations' perspectives to the deliberations of IFAC's planning. 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. 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.