IFAC (International Federation of Accountants) commissioned Gibson Dunn, a leading global law firm, to perform an independent qualitative and quantitative analysis of the public responses to the Consultation Paper published by the Monitoring Group: Strengthening the Governance and Oversight of the International Audit-related Standard-setting Boards in the Public Interest.

A large number of responses were received from stakeholders from around the world.

• The 179 responses included investors, standard setters, government auditors, regulators, researchers, individuals, accounting firms and professional organizations from a wide range of geographies.
• In any consultation, the input from all respondents must be considered. It should be noted that 74 professional accountancy organizations, or 41 percent of all respondents, felt strongly enough to provide comments. Notably, the overall, main conclusions from the report remained intact even when responses from these accountancy organizations were removed from the analysis.

The Gibson Dunn analysis highlighted marked differences of opinion across geographies and stakeholder groups on key proposals, but included several overall, main conclusions:

• Respondents generally criticized the premise of the Consultation Paper, namely that there are major concerns with the current standard-setting process. Respondents also expressed concern that a Public Interest Framework to evaluate change has not yet been issued and agreed.
• Respondents generally expressed skepticism regarding the broader governance changes proposed by the Consultation Paper.
• Respondents provided significant support for some operational changes proposed in the Consultation Paper.

After carefully reviewing the report IFAC has the following observations:

Broad support and agreement for any Public Interest Framework is necessary before any of the broader governance changes proposed can be properly assessed.

• While there was virtually universal agreement that any changes must be in the public interest, there was significant criticism that the proposed Public Interest Framework has not been released for consultation.
• The Public Interest Framework, agreed by stakeholders, should include multi stakeholder composition of both the standards boards and their oversight bodies, and should provide the umbrella within which all significant proposals can be evaluated and agreed as an integrated package by key stakeholders.

Seeking consensus on proposals which could have a significant global impact depends not only on the merits of the proposals but also on the way the process is conducted; a new multi stakeholder approach is needed.

• The way forward should be under the direction of a multi stakeholder group that will engage all key stakeholders in a broad, open and collaborative dialogue.
• The need for this multi stakeholder group is reinforced not only by the multi stakeholder elements that should undoubtedly form part of the Public Interest Framework but also by the differences of opinion that currently exist across geographies and stakeholder groups.
• Without this approach global agreement and international acceptance is unlikely.

Change and transition can bring significant disruption and risk that must be mitigated.

• Any steps taken must not jeopardize the existing widespread adoption of the International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) standards, their acknowledged high quality, or the standard boards’ current work plans.
• This concern is particularly relevant at a time when the standard-setting process must deal in a timely way with the impact of changes to complex accounting standards, as well as a rapidly changing technology and audit environment.
• Any changes proposed must be justified on a cost/benefit basis and have widespread international support, particularly as there is general agreement among respondents on the absence of significant problems with the current standard-setting processes.
• Forming a multi stakeholder group to take the process forward should assist in mitigating disruption and risk.

Steps to improve operational processes can and should be taken quickly.

• There is strong support for some operational changes.
• IFAC takes its responsibility to support the operations of the independent standard-setting boards very seriously.
• IFAC is reviewing identified operational areas with IAASB and IESBA leadership and other stakeholders to determine the actions they would agree can be taken now to improve the efficiency and effectiveness of the operations of the two boards in the public interest.

IFAC intends to actively engage with all stakeholders to seek a revised approach to improve the standard-setting process, that responds constructively to the feedback received, and that is:

• Grounded in a Public Interest Framework that needs to be agreed as a first step in the process.
• Under the direction of a multi stakeholder group.
• Designed to minimize disruption and risk.
• Focused on making agreed operational improvements.

IFAC welcomes stakeholders’ reactions to these observations.

Please send any comments to communications@ifac.org.

Nearly 80% of jurisdictions worldwide have adopted International Standards for Auditing for mandatory audits, while more than 60% have fully adopted the international Code of Ethics for Professional Accountants, according to a new study by IFAC—International Federation of Accountants—on rates of adoption of international standards across 80 of the jurisdictions in which IFAC’s more than 175 member organizations operate.

High-quality international standards are essential pillars of the global financial architecture. Their adoption and implementation improve the availability of the high-quality financial information in the public and private sectors that improves decision making and ultimately results in greater economic growth, development, and accountability.

“This forward momentum is positive news for investors, governments, businesses of all sizes, global regulators and the public given these standards’ relevance to the entire global finance structure,” said Alta Prinsloo, Executive Director, Quality & Development. “Following comparable international standards enable businesses to produce financial information that decision makers can rely on.”

The data is included in a first-of-its kind report that assesses and publically reports on the global status of the adoption of international standards—International Standards: 2017 Global Status Report. The report details the high rates of adoption around the world, driven by IFAC and its member organizations, and positive results in several key areas, including ethics, financial reporting standards, and quality assurance, and provides examples of success and tools for continued progress.

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.

This report is an independent, qualitative and quantitative analysis by Gibson Dunn of the public responses to the Consultation Paper published by the Monitoring Group. 

This policy outlines the requirements for those wishing to translate any materials published by the International Federation of Accountants, including materials from the independent standard-setting boards.

This policy outlines the requirements for those wishing to reproduce any materials published by the International Federation of Accountants, including materials from the independent standard-setting boards.

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The future of business lies with the accounting profession. Join the world’s leading financial experts in Sydney, Australia, November 5-8, 2018 for the next World Congress of Accountants. This year’s theme, Global Challenges. Global Leaders., will inspire and inform your thinking on the future of accounting and our profession, and provide a unique opportunity to help shape that future.

Five reasons to attend:

• Learn, adapt and accelerate your career through a technology-enabled curated conference experience.
• Ignite new business opportunities via thought leadership, turning ideas into solutions, and shaping the future of the profession.
• Network with 6000+ motivated professionals from 130 countries. Join the conversation at the Business Connect Hub and stay in touch with the Congress app.
• Explore cutting edge technology across more than 50 exhibits, expo presentations, activity and chillout zones, and barista coffee lounges.
• Be delighted by Sydney at its best through an immersive social program, from cruising the world’s largest natural harbour to our premier Gala event.

Full details and the latest news, including the Program, is available on the World Congress of Accountants 2018 website.

IFAC, the International Federation of Accountants, today announced its first accountancy capacity building project in Southeast Asia. The project will assist the Myanmar Institute of Certified Public Accountants (MICPA) in its work to strengthen the accountancy profession in Myanmar. IFAC has selected the Association of Chartered Certified Accountants (ACCA) to partner with MICPA on the project.

ACCA will partner with MICPA to build a sustainable professional accountancy organization that can act as the cornerstone of the profession in the country. The project will deliver a strategic plan and new governance structure for MICPA, in consultation with key national stakeholders.

“This project will contribute to Myanmar’s ongoing economic reform in line with the new government’s policy of liberalization, which includes modernizing the accountancy profession,” said Alta Prinsloo, IFAC Executive Director, Quality & Development. “As the first project under this Program in Southeast Asia, it offers opportunity to make a positive impact in the region.”

Myanmar, currently in the process of democratic transition, is one of East Asia’s fastest growing economies. The new government is committed to attracting investment for sustainable growth, and its support of this project demonstrates its recognition of the critical role that the accountancy profession can play in this process.

This project is funded with UK aid from the UK government. In 2014, the UK Department for International Development (DFID) reached an agreement with IFAC to provide funding of almost £5 million for PAO capacity building in at least ten emerging countries over seven years. Projects under the IFAC Capacity Building Program using DFID funding are currently underway in several countries including Ghana, Kyrgyzstan, Rwanda and Zimbabwe.  Partner organizations are selected following global Calls for Expressions of Interest and an extensive proposal and review process by the IFAC PAO Capacity Building Program Independent Selection Panel.

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.

About DFID
The Department for International Development (DFID) leads the UK’s work to end extreme poverty. We're ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit. For more information visit www.gov.uk/dfid.

About MICPA
The Myanmar Institute of Certified Public Accounts is a professional body of Certified Public Accountants in Myanmar. The mission of the body is to communicate with international accountancy bodies and to distribute information to its members. MICPA was found under the Myanmar Accountancy Council (MAC), a policymaking body of accountants and auditors.

The IFAC Small and Medium Practices Committee had responded to the Fees Questionnaire towards the end of February 2018. On a macro level, it is the view of the Committee that the issue of fees is multi-faceted and IESBA will need to develop a more holistic approach to tackle any issue, perceived or otherwise in this domain in their next Strategic Work Plan 2019-2023. It is hoped that the data collected from this Survey will assist in shaping the IESBA’s work effort going forward.