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  • ISA 540 (Revised) Implementation Support: Audit Client Briefing

    English

    CONSIDERATIONS FOR MANAGEMENT WHEN DETERMINING ACCOUNTING ESTIMATES AND RELATED DISCLOSURES

    The International Standard on Auditing (ISA) 540 (Revised) Implementation Working Group has prepared an Audit Client Briefing (Briefing) based on the Canadian Auditing Standard (CAS) Audit Client Briefing of the Chartered Professional Accountants of Canada (CPA Canada), published in October 2019 and is used with permission of CPA Canada.

    DOWNLOAD THE FULL BRIEFING HERE

    The purpose of this Briefing is to make chief financial officers, other senior management responsible for financial statement preparation, and staff directly involved in determining accounting estimates aware of matters to consider in preparing for the auditor’s requests pertaining to ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures.

    This Briefing provides an overview of:

    • Management’s responsibilities in determining when accounting estimates are needed;
    • Management’s responsibilities regarding the main components of an estimation process; and
    • The impact on management because of changes to the auditor’s responsibilities, including broad questions auditors are likely to ask those involved in the detailed aspects of the estimation process.

    This Briefing does not constitute an authoritative pronouncement of the International Auditing and Assurance Standards Board (IAASB), nor does it amend, extend or override the ISAs or other of the IAASB’s International Standards. It is not meant to be exhaustive and reading this Briefing is not a substitute for reading the ISAs.


  • ISA 540 (Revised) Implementation Support: Audit Client Briefing

    Considerations for Management When Determining Accounting Estimates and Related Disclosures

    The International Standard on Auditing (ISA) 540 (Revised) Implementation Working Group has prepared an Audit Client Briefing (Briefing) based on the Canadian Auditing Standard (CAS) Audit Client Briefing of the Chartered Professional Accountants of Canada (CPA Canada), published in October 2019 and is used with permission of CPA Canada.

    IAASB
    English

  • IFAC Council Approves Its First Ever Female-Majority Board

    New York, NY English

    IFAC, the International Federation of Accountants, today announced its first ever female-majority Board. The approval of eight Board members, including five women, occurred at IFAC’s annual Council meeting in Vancouver.

    New IFAC Board members and their nominating member organizations are:

    • Yeong Kyun Ahn, Korean Institute of Certified Public Accountants
    • Joan Curry, Chartered Accountants Ireland
    • Caroline Gardner, Chartered Institute of Public Finance and Accountancy
    • Winnie Nyamute, Institute of Certified Public Accountants of Kenya
    • Fiona Wilkinson, Consultative Committee of Accountancy Bodies
    • Ismaila Zakari, Institute of Chartered Accountants of Nigeria

    Returning members re-appointed for a second term of service to IFAC’s Board are:

    • Tommye Barie, Association of International Certified Professional Accountants
    • Idésio da Silva Coelho, Jr., Instituto dos Auditores Independentes do Brasil and Conselho Federal de Contabilidade

    Over the course of the past decade, IFAC has committed to improve gender balance on its Board and committees. Through dedicated and ongoing outreach to attract a diverse slate of candidates, with a particular focus on gender diversity, 12 of IFAC’s 23-member Board are now women.

    Dr. In-Ki Joo, IFAC President, said, “On behalf of IFAC, I congratulate and welcome all of our new and returning Board members. Each of these individuals was nominated and approved on the basis of their leadership qualities, business acumen, and passion for the future of our profession. We are particularly pleased that, as a result of our deliberate focus on gender diversity, the majority of these well-qualified Board members are women.”

    “I am equally pleased to congratulate the newest members of the IFAC organization,” Dr. Joo continued. “Joining IFAC demonstrates a serious commitment to the advancement of our profession, and should be recognized and applauded as a significant milestone on the path of continuous growth and improvement.”

    The following Associates have been approved as IFAC Members:

    • Albanian Institute of Certified Accountants
    • Instituto Salvadoreño de Contadores Públicos
    • Certified Practising Accountants of Papua New Guinea

    In addition, five professional accountancy organizations have been approved to join IFAC as Associates:

    • Colegio de Contadores Públicos de Pichincha y del Ecuador
    • Colegio Hondureño de Profesionales Universitarios en Contaduría Pública
    • Lao Chamber of Professional Accountants and Auditors
    • Ordem dos Contabilistas e Auditores de Moçambique
    • Suriname Chartered Accountants Institute

    Collectively, this signifies new representation of IFAC in Ecuador, Laos, Mozambique, and Suriname.

    “We are committed to representing—and advancing—the global accounting profession. With a majority-female Board and Associates in four new countries, this is a proud moment for IFAC,” said Dr. Joo.

    The new Board appointments and membership decisions were approved at IFAC’s 2019 Council meeting, held from November 13 to 14 in Vancouver, Canada.

    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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

  • Fighting Corruption and Money Laundering

    The consequences of corruption are significant and widespread, from direct costs to individuals and society, to encouraging criminal behavior and undermining trust in institutions. Grounded in a strong ethical code, professional accountants across the globe play a critical role in the fight against corruption, bringing essential transparency, relevance and integrity to the systems that underpin vibrant economies and making corruption less profitable and easier to prevent, detect and remedy.  IFAC’s advocacy in this space reflects our strongly-held belief that serving the public interest by fighting corruption, including money laundering, is central to the accountancy profession’s activities.

    1. G20’s Anti-Corruption Action Plan

    IFAC supports the G20's Anti-Corruption Action Plan 2019-2021 (Action Plan), which we use as a framework for our anti-corruption advocacy. 

    • We agree with the Action Plan that preventing and fighting corruption is critical in building national and global economic prosperity, and that no country is immune. 
    • We also support UN SDG 16 Peace and Justice: Strong Institutions, with emphases on Target 16.5: substantially reduce corruption and bribery in all their forms, and Target 16.6: develop effective, accountable and transparent institutions at all levels.
    • We believe that the accountancy profession can and must advance the Action Plan and can have the greatest impact in the areas of anti-money laundering, whistleblowing, public sector transparency and private sector transparency.
    • We welcome the G20’s intention to strengthen engagement with the business community in implementing the Action Plan, and IFAC is committed to engaging with the G20 to achieve these goals.  We look to hold global policy makers accountable for progress on implementing their commitments and encourage our member Professional Accounting Organizations (PAOs) to do the same with respect to their domestic policy makers. 

    2. Anti-Money Laundering

    Money laundering and corruption are intrinsically linked, but money laundering is also connected to a wide range of other underlying criminal activity. While the focus of anti-money laundering policy has historically been on financial institutions—and significant progress has been made—we agree that non-financial business and professions, including the accountancy profession, also face money laundering risks. The accountancy profession is critical in the fight against money laundering, and it is incumbent on the profession to mitigate these risks.

    • We support efforts to combat money laundering at both the national and international levels, including the activities of the Financial Action Task Force (FATF).
    • We support the pragmatic, proportionate, and outcomes-oriented inclusion of the accountancy profession within the money laundering legal and regulatory framework (e.g., the inclusion of the accountancy profession within the FATF Standards).  International standards and national implementation should consider the realities of the risks presented, measures already in place (e.g., IESBA’s International Code of Ethics for Professional Accountants), and the costs and benefits of regulation.  This is consistent with the IFAC Principles for Smart Regulation.
    • We support initiatives to increase the transparency of beneficial ownership for entities and legal arrangements in a way that enables competent authorities to determine beneficial ownership in a timely manner.  In developing domestic policy and initiatives on beneficial ownership transparency, national authorities should carefully consider the likely benefits in terms of fighting money laundering balanced against issues of privacy and operational burden, particularly for small and medium-sized enterprises and accountancy practices, all within the context of the specific characteristics of their jurisdiction.     
    • We look to support further our membership by promoting information sharing between PAOs on money laundering risks and to assist PAOs in mitigating these risks through capacity building. We also encourage PAOs to consider enhanced engagement with law enforcement and other relevant stakeholders in their jurisdictions on money laundering issues.   
    • We encourage accounting firms and PAOs to consider the FATF Guidance for a Risk-Based Approach for the Accounting Profession when developing their own policies and processes.  A number of PAOs and governments have also developed guidance for the profession, and for PAOs with supervisory responsibility, that are useful examples for other jurisdictions to consider.

    3. Whistleblowing

    Effectively protecting whistleblowers and handling protected disclosures are central to uncovering wrongdoing, promoting integrity and preventing corruption. 

    4. Public Sector Transparency

    Government spending is vitally important and can be vulnerable to corruption.  Public sector transparency is key to deterring and uncovering corruption. High-quality, global public sector accounting standards play a significant role in supporting public sector transparency and thereby combatting corruption. 

    • We support the work of the International Public Sector Accounting Standards Board (IPSASB) and advocate for the global adoption and effective implementation of accrual-based International Public Sector Accounting Standards (IPSAS).
    • We encourage our members to advocate for adoption and effective implementation of IPSAS in their local jurisdictions.
    • We play an important role in promoting and supporting the adoption and implementation of IPSAS, including advocacy, sharing best practice, developing guidance, and building capacity in professional accounting organizations.
    • We believe that the combination of IPSAS, effective whistleblowing frameworks, and the strong ethical underpinnings of the accountancy profession, working together, act to minimize the opportunities for and profitability of corruption. 

    5. Private Sector Transparency

    The private sector is an essential partner of governments in the fight against corruption, and its commitment to transparency plays an integral role in achieving anti-corruption goals.  High-quality global standards for accounting and auditing, as well as ethics, play a significant role in supporting private sector transparency and thereby combatting corruption.

    • We support the G20 Principles on High Level Private Sector Transparency and Integrity, as interpreted by the OECD/UNODC/World Bank Anti-Corruption Ethics and Compliance Handbook for Business.
    • We support the work of the International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) and advocate for the global adoption and effective implementation of the International Standards on Auditing (ISAs) and IESBA’s International Code of Ethics (“the Code”).
    • We encourage our members to advocate for adoption and effective implementation of the ISAs and the Code in their local jurisdictions.
    • We play an important role in promoting and supporting the adoption and implementation of ISAs and the Code, including advocacy, sharing best practice, developing guidance, and building capacity in professional accounting organizations.
    • By enhancing corporate reporting, enterprises can increase transparency with respect to issues related to corruption and money laundering, contributing to the fight against them. 
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