International Federation of Accountants Organizational Overview and Update April 2002.

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  • International Federation of AccountantsOrganizational Overview and UpdateApril 2002

  • IFAC Mission IFACs mission is the worldwide development and enhancement of the profession with harmonized standards to enable it to provide services of consistently high quality in the public interest. IFAC Overview

  • IFAC TodayIFAC currently has 156 member bodies in 114 countries, representing more than 2.5 million accountants.

    IFAC Overview

  • Current EnvironmentThe current and anticipated environment demands that the international profession: Respond to globalizationAddress investor and regulator needsMeet expanding needs of businessRebuild public confidence in the accountancy profession

    IFAC Overview

  • Current Action PlanStrengthening activities in five key areas:Standard Setting and GuidanceRegulation of the ProfessionDevelopment of the ProfessionMeeting Needs of AccountantsCommunications IFAC Overview

  • New International Auditing and Assurance Standards Board (IAASB)Comprised of 10 member body representatives, 5 from FoF and 3 public members Strengthen internal technical resourcesDevelop high-quality auditing standards Increase transparency in auditing-standard setting processObtain endorsement of ISAs from IOSCO

    Standard Setting and Guidance

  • Code of Ethics for Professional AccountantsServes as a benchmark for codes of conduct of accountants worldwideApproved stronger independence rules last November - Conceptual framework approach (not prescriptive) - Highlight factors that pose threat to independence - Focus on safeguards to minimize threatStandard Setting and Guidance

  • Public Sector Accounting Standards (IPSAC)First authoritative international financial reporting standards for public sector (OECD, World Bank, etc.)Designed to strengthen financial reporting and accountability of public sector17 standards issued to dateStandard Setting and Guidance

  • Education StandardsAction initiated to elevate education guidelines to standardsStandards designed to promote compliance (not only consideration)Address pre- and post-qualification education requirements and emerging topics such as ITNew standards to be exposed for comment in June; Final issuance December 2002Standard Setting and Guidance

  • Current Action PlanStrengthening activities in five key areas:Standard Setting and GuidanceRegulation of the ProfessionDevelopment of the ProfessionMeeting Needs of AccountantsCommunications IFAC Overview

  • Regulatory InitiativesRegulatory regime comprised of 4 primary bodiesForum of Firms (FoF)Transnational Auditors Committee (TAC)Compliance CommitteeIndependent Oversight Board Regulation of the Profession

  • Forum of FirmsObjectiveTo promote consistently high standards of financial reporting and auditing worldwide in the interest of the usersRegulation of the Profession

  • Forum of FirmsFoF members will work to achieve this objective by:Comply with FoF Quality StandardSubject policies, methodologies, and work to periodic external quality assurance reviewPromote use of international auditing and assurance standardsInvolve in IFAC activities Regulation of the Profession

  • Transnational Auditors Committee (TAC)IFAC Committee and executive arm of FOFResponsibilities include: - Connect FoF and IFAC Board - Develop, maintain and administer the Quality Assurance Review program - Develop guidance regarding transnational audits Regulation of the Profession

  • Compliance CommitteeObjectiveEncourage improvement and enhancement of standards within IFAC member bodies through greater compliance with standards, rules and guidelines issued by IFAC

    Regulation of the Profession

  • Compliance CommitteeResponsibilities include:Evaluate potential member applications for Board considerationReview member bodies harmonization of IFAC pronouncements with local rulesHelp member bodies comply with IFAC requirementsWork closely with TAC to monitor FoF memberRegulation of the Profession

  • Independent Oversight BoardPreserve and strengthen public confidence in financial reporting and the integrity of the audit processReview FoF quality control process and IFAC activitiesDraft charter was exposed for commentRevisit framework in light of recent environmental changes. Regulation of the Profession

  • Current Action PlanStrengthening activities in five key areas:Standard Setting and GuidanceRegulation of the ProfessionDevelopment of the ProfessionMeeting Needs of Accountants Communications IFAC Overview

  • International Forum on Accountancy Development (IFAD)IFAD was created in 1999 to improve financial reporting, auditing practice and corporate governanceCurrently comprised of over 30 public and private institutions Developing and implementing country action plans

    Development of the Profession

  • Meeting the Needs of a Diverse Profession

    SMP Task Force established to address needs of Small and Medium-Sized PracticesWorking group established to focus on meeting the needs of accountants in business, industry and commerceIFACs web site provides a wide range of mostly free guidance for the worlds accountants

    Support for Accountants

  • Responding to Public Concern

    Establishing international task force to study and recommend principles of best practice in the areas of

    Financial and business reportingCorporate governanceAuditor performanceInterim report expected in November 2002 Final report to be issued in March 2003 Communications

  • Increased Spokesmanship

    Represent the profession to international bodiesExpress professions view to IOSCO and other international institutionsExplain the professions role with respect to public interest and other responsibilities Communications

  • Current Action Plan

    StrengtheningStandard Setting and GuidanceRegulation of the ProfessionDevelopment of the ProfessionMeeting Needs of AccountantsCommunications IFAC Summary

  • International Federation of Accountants

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