A new, updated, customizable^* brochure for IFAC member organizations ONLY, Choosing the Right Service: Comparing Audit, Review, Compilation, and Agreed-Upon Procedures Services, is here!

Earlier today the International Federation of Accountants (IFAC) released updates to two previously published international standard support resources:

• Agreed-Upon Procedures (AUP) Engagements: A Growth and Value Opportunity (the AUP Publication): Describes AUP engagements, when they are appropriate, and identifies key client benefits. It also covers AUP engagements on financial and non-financial subject matters, provides six short case studies with example procedures that might be applied and two illustration AUP reports from ISRS 4400 (Revised).
• Choosing the Right Service: Comparing Audit, Review, Compilation, and Agreed-Upon Procedures Services (the Brochure): Explains and differentiates the range of audit, review, compilation, and agreed-upon procedures services which practitioners can provide in accordance with relevant international standards. It can help current and prospective clients understand the range of services available, when they are appropriate, as well as their benefits.

Both resources have been updated to reflect International Standard on Related Services 4400 (Revised), Agreed-Upon Procedures Engagements, which was approved by the International Auditing and Assurance Board (IAASB) earlier this year and is effective for agreed-upon procedures engagements for which the terms of engagement are agreed on or after January 1, 2022.

The demand for AUP engagements continues to grow as a broad range of stakeholders, such as regulators, funding bodies, and creditors use agreed-upon procedures reports for a variety reasons. Flexibility is a key benefit of AUP engagements, as they can be tailored to different circumstances and focused on individual items of financial or non-financial subject matters.

One of IFAC’s three strategic objectives is contributing to and promoting the development, adoption, and implementation of high-quality international standards. There are numerous additional guidance and support resources available on the dedicated ‘Supporting International Standards’ section of the IFAC Knowledge Gateway.

IFAC applauds the publication today of Reporting on Enterprise Value, Illustrated with a Prototype Climate-Related Financial Disclosure Standard, a new report from leading sustainability and integrated reporting organizations CDP, CDSB, GRI, IIRC, and SASB.

The report represents another milestone in the journey to enhancing corporate reporting, and stands to advance the dialogue between companies and their investors and stakeholders through reporting of sustainability-related information.

In September 2020, IFAC published The Way Forward, a call for the creation of an international sustainability standards board. Earlier this month, IFAC issued its response to the IFRS Foundation Consultation Paper on Sustainability Reporting, where we reiterated our view that the IFRS Foundation should establish a new sustainability standards board alongside the IASB, to focus on reporting requirements that address enterprise value creation, and to deliver at speed by leveraging the expertise and standards that already exist as a result of work by CDP, CDSB, GRI, IIRC, SASB as well as the TCFD.

Today’s report not only provides a valuable starting point for this IFRS initiative, but also clearly demonstrates the collaborative intent and effort of these organizations—now and going forward.

IFAC encourages our members and stakeholders to respond to the IFRS Consultation Paper by December 31. IFAC will continue to speak out on behalf of the global accountancy profession in support of a global solution for reporting sustainability information.

A global search has begun for highly qualified individuals to fill seven volunteer openings, including one of more vacancies for public members[1], on the International Ethics Standards Board for Accountants (IESBA) for an initial term of service of up to 3 years, commencing January 1, 2022.

The IESBA is an independent standard-setting board that develops, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide.

The nominations process, with public interest oversight, aims to select the most suitable candidates for the available positions. Transition to a multi-stakeholder model in line with the Monitoring Group reforms[2] will be taken into consideration during the selection process.

All stakeholders, including the general public, are invited to apply or nominate candidates. The Nominating Committee is interested in candidates from a wide range of relevant backgrounds, in the private or public sector, including:

• preparers of financial statements;
• users of audited financial statements or assurance reports (including institutional investors, investor representatives and analysts, audit committee members, and those charged with corporate governance);
• academics;
• auditors and assurance providers;
• regulators;
• national standard setters; and
• policy makers.

Candidates should ideally have experience with issues relating to ethics and independence, and sufficient familiarity with the matters considered by the IESBA to be able to contribute effectively to the board’s standard-setting and outreach work. English proficiency (both written and oral) is essential.

Nominations of highly qualified candidates from all regions are encouraged, with a particular emphasis from the Australia–Oceania, Africa–Middle East, and Latin America–Caribbean regions. Striving for gender parity remains an area of focus, and nominations of female candidates are strongly encouraged.

Financial support to cover travel costs for attending board meetings is available for qualifying individuals and public members who do not have a nominating organization.

For more information and to learn how to submit an application before the February 15, 2021 deadline, please review the Call for Nominations for IESBA in 2022, also available in Arabic, French, and Spanish.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

Earlier today, the Staff of the South African Independent Regulatory Board for Auditors, (IRBA) the International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) jointly released the publication, Navigating the Heightened Risks of Fraud and Other Illicit Activities During the COVID-19 Pandemic, including Considerations for Auditing Financial Statements.

The publication highlights the heightened risks of fraud arising from the disruptive and uncertain COVID-19 environment and the implications for professional accountants in business, including accountants in government, and professional accountants in public practice, including auditors.

Concurrently, the Staff of Chartered Professional Accountants of Canada (CPA Canada) and IESBA jointly released a Staff Alert, COVID-19 and Evolving Risks for Money Laundering, Terrorist Financing and Cybercrime. This document highlights the heightened risks of money laundering, terrorist financing and cybercrime in the COVID-19 environment. It describes the implications for both professional accountants in business and public practice.

The documents were developed by the IRBA and CPA Canada Staff under the auspices of a Working Group formed by the IESBA and national ethics standard setters (NSS) from Australia, Canada, China, South Africa, the UK, and the US. Chaired by Mr. Richard Fleck, IESBA Deputy Chair, the Working Group’s mandate is to develop implementation support resources to assist accountants effectively apply the International Code of Ethics for Professional Accountants (including International Independence Standards) when facing circumstances created by the COVID-19 pandemic. The publications benefited from input from IESBA and IAASB Staff.

Both documents can be found on the IESBA COVID-19 resource page.

About the IESBA-NSS Working Group

The Working Group organizations comprise: Accounting Professional & Ethical Standards Board (Australia); CPA Canada; the Chinese Institute of Certified Public Accountants; IRBA (South Africa); the UK Financial Reporting Council; and the American Institute of Certified Public Accountants (US).

About IRBA

The Independent Regulatory Board for Auditors (IRBA) is the statutory body controlling that part of the accountancy profession involved with public accountancy in South Africa. Its strategic focus is to protect the financial interests of the public by ensuring that only suitably qualified individuals are admitted to the auditing profession and that registered auditors deliver services of the highest quality and adhere to the highest ethics standards.

About CPA Canada

Chartered Professional Accountants of Canada (CPA Canada) is one of the largest national accounting organizations in the world and is a respected voice in the business, government, education and non-profit sectors. CPA Canada is a progressive and forward-thinking organization whose members bring a convergence of shared values, diverse business skills and exceptional talents to the accounting field. Domestically, CPA Canada works cooperatively with the provincial and territorial CPA bodies who are charged with regulating the profession. Globally, it works together with the International Federation of Accountants and the Global Accounting Alliance to build a stronger accounting profession worldwide. As one of the world’s largest national accounting bodies, CPA Canada carries a strong influential voice and acts in the public interest.

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

About IAASB

The International Auditing and Assurance Standards Board (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 Staff of CPA Canada and IESBA jointly released this publication, which highlights the heightened risks of money laundering, terrorist financing and cybercrime in the COVID-19 environment. It describes the implications for both professional accountants in business and public practice. 

The Staff of CPA Canada and IESBA jointly released this publication, which highlights the heightened risks of money laundering, terrorist financing and cybercrime in the COVID-19 environment. It describes the implications for both professional accountants in business and public practice.