The International Federation of Accountants (IFAC) has published its initial views to the Monitoring Group Consultation Paper on changes to the international audit and ethics standard-setting process.

While IFAC agrees with some aspects of the Monitoring Group Consultation Paper, including the introduction of a multi-stakeholder model, broad geographical representation, sufficient checks and balances, and a review of the nominations process, it has concerns about far reaching proposals that would fundamentally dismantle the current model.

IFAC is also concerned that the consultation paper offers no evidence for such a drastic change and that fundamental key issues are omitted from the consultation or deferred, including: funding, oversight and governance, transition process, and an impact and risk assessment. Additionally, aspects of the Consultation Paper do not accurately reflect the current standard-setting arrangements, and offer proposals that are contrary to the Monitoring Group’s stated aims.

As an alternative to the proposals in the Monitoring Group Consultation Paper, IFAC proposes changes, which further enhance the independence of international standard setting while retaining separate audit and ethics boards and allowing ethics standards to remain applicable to all professional accountants, including auditors. They reinforce a multi-stakeholder approach across all aspects of standard setting, including the Public Interest Oversight Board (PIOB) and Nominating Committee; clarify the role of the PIOB and enhance transparent, independent public interest oversight; and advocate for a funding model with contributions from all stakeholders.

IFAC welcomes regular reviews of the standard-setting process that are in the public interest and ensure that the structures for international standard setting remain relevant in a changing world.

The Monitoring Group is considering all feedback from stakeholders. Comments should be submitted by February 9, 2018 to: MG2017consultation@iosco.org.

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.

Over the last 15 years you and many others have contributed extensively to IAASB’s and IESBA’s work. This has included supporting the use of our International Standards, and contributing to their quality by means of comment letters and participation in outreach. We are grateful for this support.

The International Auditing and Assurance Standards Board (IAASB) has agreed to collaborate with the World Business Council for Sustainable Development (WBCSD) to strengthen international assurance standards on sustainability reporting.

The collaboration supports WBCSD’s Redefining Value program and its objective to incorporate sustainability reporting within mainstream reporting, while ensuring external reporting follows the applicable IAASB international assurance standards (or their national equivalents). This consistency will champion the road to create greater alignment across reporting frameworks and build trust and confidence in sustainability reporting.

The WBCSD engaged IAASB as a key collaborator for this new project because it is the global standard setter for auditing and assurance standards.

Assurance of sustainability information continues to be an issue for preparers and assurance providers. Investors have consistently stated that assurance is important for building confidence in sustainability information in order for the information to be relevant and decision-useful. External assurance provides a critical role in building trust and confidence around sustainability information.

With support and funding from WBCSD, the IAASB approved a major new project to develop voluntary guidance on applying its existing assurance standards to emerging forms of external reporting (EER). EER goes beyond traditional financial reporting to include sustainability (or ESG) information and integrated reporting.

Recent publications by WBCSD and IAASB highlight the need to develop guidance on how EER assurance engagements are performing. This is because companies are at different stages of maturity in applying assurance and may face various barriers or challenges that they need help to overcome. WBCSD considers the independence of IAASB’s decision making to be a fundamental strength in supporting better EER assurance

Rodney Irwin, Managing Director of Redefining Value at WBCSD, said, “The scale of the challenges we face in moving towards a system that considers financial and non-financial information requires unprecedented collaboration. We have chosen to work with the IAASB because of their internationally renowned methods of setting the highest standards and encouraging companies/countries to adhere to them. We look forward to a working together towards an economy that values the true cost, true profit, true value of business.”

Work will begin in December 2017 and draft guidance on key challenges is expected to be published in Q4 2018.

Notes to Editors
This project is part of the Conservation and Financial Markets Initiative, a five-year effort of the Gordon and Betty Moore Foundation that aims to leverage the power of mainstream financial markets in order to help drive the food sector away from practices that degrade natural ecosystems.

About the World Business Council for Sustainable Development (WBCSD)
WBCSD is a global, CEO-led organization of over 200 leading businesses working together to accelerate the transition to a sustainable world. We help make our member companies more successful and sustainable by focusing on the maximum positive impact for shareholders, the environment and societies.

Our member companies come from all business sectors and all major economies, representing a combined revenue of more than $8.5 trillion and 19 million employees. Our global network of almost 70 national business councils gives our members unparalleled reach across the globe. WBCSD is uniquely positioned to work with member companies along and across value chains to deliver impactful business solutions to the most challenging sustainability issues.

Together, we are the leading voice of business for sustainability: united by our vision of a world where more than 9 billion people are all living well and within the boundaries of our planet, by 2050.

www.wbcsd.org
Follow us on Twitter and LinkedIn

About IAASB
The 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 structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Gordon and Betty Moore Foundation:
The Gordon and Betty Moore Foundation fosters path-breaking scientific discovery, environmental conservation, patient care improvements and preservation of the special character of the Bay Area. Visit www.moore.org or follow @MooreFound. 

The International Federation of Accountants^® (IFAC^®) is seeking exceptional candidates with a strong commitment to the public interest to contribute to the strength and vitality of accounting globally by filling open volunteer positions.

The Call for Nominations for the IFAC Board and Committees in 2019, issued today, details openings and the requirements for successful nominations for membership on the IFAC Board, Compliance Advisory Panel, and three IFAC committees—Professional Accountants in Business Committee, Professional Accountancy Organization Development Committee, and Small and Medium Practices Committee.

For 2019, the Nominating Committee is seeking nominations for the next IFAC Deputy President. Nominees for this key leadership position should be senior and highly respected members of the profession, able to demonstrate a commitment to IFAC’s strategy and mission, and make astute business decisions in the best interest of the public and the global profession. The IFAC Deputy President is a two-year term position with a significant annual time and travel commitment.

Nominees are also sought for Chair of the Compliance Advisory Panel for 2018, an important leadership role that works directly with IFAC’s member organizations and global adoption and implementation of international standards.

“Each year, we ask our members to help us find diverse, accomplished leaders committed to the public interest and advancing the global accountancy profession,” said IFAC President Rachel Grimes. “With an emphasis on diversity and two significant leadership positions open, we are seeking nominations from all sectors and jurisdictions. We also thank our member organizations for the time and resources devoted to ensure continuing leadership development for future nominations.”

The Nominating Committee encourages all IFAC members to review the Call for Nominations, including the detailed information on vacancies and composition targets as well as specific membership qualifications and requirements. The companion guide offers strategic guidance in selecting candidates, including identifying the most qualified nominee for each available position. IFAC members are encouraged to make diverse nominations that reflect the depth and breadth of the global accountancy profession. Gender equality is especially important to the Nominating Committee to ensure balance on the IFAC Board and other committees; nominations of qualified female candidates are strongly encouraged.

Nominations can be submitted online via the Nominations Database by February 15, 2018. Additional information on the Nominating Committee and its open, transparent selection process is available on the Nominating Committee web page.

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.