The Framework is an opportunity for organizations to improve the quality of information provided about governance, strategy, prospects, and performance that reflects the commercial, social, and environmental contexts within which they operate. It enables them to engage with investors and others and focus on value creation over time. Ultimately, it will contribute to a more financially stable global economy and is a force for sustainability.

It will bring cohesion, technical rigor, and efficiency to a process that has grown organically and through market pressure over the last three years. Organizations that are able to adopt “integrated thinking” will benefit by breaking down internal silos and reducing duplication. Finance and accounting leaders need to act as change agents in their organizations and facilitate integrated thinking across the organization so that integrated reporting can be successful. These leaders have a crucial role in putting their organizations on a path of sustainable performance.

As a co-founder of the IIRC, IFAC has played a central role in the development of the IIRC and the Integrated Reporting Framework. IFAC President Warren Allen serves on the IIRC and former IFAC CEO Ian Ball is continuing his role as Working Group chair on IFAC’s behalf. IFAC has also provided staff support to the development of the IR Framework.

We encourage our member bodies and other stakeholders to communicate about the Integrated Reporting Framework and to get involved in its next stages, and we look forward to continuing to perform a constructive and central role in 2014 and beyond

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 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession, today released the Guide to Review Engagements. The guide, developed in conjunction with CPA Canada, aims to help professional accountants in practice, especially those operating in small- and medium-sized practices (SMPs), in conducting review engagements in compliance with International Standard on Review Engagements (ISRE) 2400 (Revised), effective for periods ending on or after December 31.

“Many small- and medium-sized entities (SMEs) around the world are not required, or do not elect, to have an audit. They may, however, wish to enhance the credibility of, and confidence in, their unaudited financial statements by having some degree of independent assurance on them,” said SMP Committee Chair Giancarlo Attolini. “A review engagement, which offers limited assurance, may be the ideal solution. The guide can help practitioners prepare themselves to meet the potentially increasing demand in this area.”

To help practitioners develop a deeper understanding of ISRE 2400 (Revised), the guide includes illustrative examples alongside relevant extracts from the standard. It also includes practical points for practitioners’ consideration and tips on how to efficiently implement the standard. Checklists and forms that can be adapted to meet the particular requirements and circumstances of individual review engagements and jurisdictions are also included.

To assist IFAC member organizations, the SMP Committee has also updated its Companion Manual, a supplementary user guide to help organizations understand the various ways they can use, translate, and adapt the committee’s implementation guides.

To download the guide, visit SMP Publications & Resources. See also the article “Review Engagements for SMEs: Limited Assurance, Numerous Benefits,” which was developed to help IFAC members communicate the value of a review engagement and the availability of the guide to their members.

About the SMP Committee
The SMP Committee of the International Federation of Accountants (IFAC) represents the interests of professional accountants operating in small- and medium-sized practices (SMPs). The committee develops guidance and tools and works to ensure the needs of SMPs are considered by standard setters, regulators, and policy makers. The committee also speaks out on behalf of SMPs to raise awareness of their role and value, especially in supporting SMEs, and the importance of the small business sector overall.

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. It is comprised of 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The SMP Committee submitted this comment letter on the International Auditing and Assurance Standards Board (IAASB)'s Auditor Reporting Exposure Draft.

The Notice of the Call for Nominations for the IFAC Board and Committees in 2015 was issued today along with the companion guide, Developing a Nominations Strategy. The Notice of the Call sets out the upcoming opportunities for membership on the Board of the International Federation of Accountants (IFAC), the global organization for the accountancy profession with 179 members and associates in 130 countries, and its Compliance Advisory Panel,  Professional Accountancy Organization Development Committee, Professional Accountants in Business Committee, Small and Medium Practices Committee, and Nominating Committee.

For 2015, there are 29 vacancies on the Board and committees, including two leadership positions—the IFAC deputy president and the chair of the Small and Medium Practices Committee. All vacancies on the Board and committees are open for nominations by IFAC Members.

The Nominating Committee encourages all IFAC Members to review the Notice of the Call, including the detailed information regarding open vacancies, composition targets, specific membership qualifications, and requirements for the Board and each committee. It also offers strategic guidance in selecting candidates, including identifying the most qualified nominee for each available position.

The official Call for Nominations will be issued on January 15, 2014, and nominations may be submitted from January 15 to March 15, 2014. The Notice of the Call is issued in advance of the Call for Nominations to allow sufficient time for stakeholders to prepare for the next nominations cycle.

The Nominating Committee follows an open and transparent process in selecting the best candidates for the available positions while also striving to achieve gender, regional, and professional balance. For more information about the Nominating Committee, its due process, or guidance in selecting the best candidate, please visit 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. It is comprised of 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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IFAC's Professional Accountancy Organization (PAO) Development and Professional Accountants in Business (PAIB) Committees recently held a landmark joint session while in Beijing, China, for their respective meetings. Hosted by the Chinese Institute of CPAs (CICPA), this seminal session provided an opportunity for the two IFAC committees and an important member body to share objectives and priorities. The session highlighted the mutually reinforcing activities of both groups and underscored the importance of continued collaboration between IFAC committees in working toward a mutual vision. The session also included a presentation by the CICPA, which provided an overview of the steady progress of the profession in China in addition to CICPA’s own experiences and future goals, including continued commitment to the work of IFAC.

Presentation by IFAC senior manager and head of professional accountants in business Stathis Gould at Baruch College’s 6th Annual Symposium on Sustainable Business: Non-Financial and Integrated Reporting in New York. Mr. Gould discusses the role IFAC plays in the global move toward integrated reporting, including IFAC’s participation in the International Integrated Reporting Council (IIRC).

Eamonn Siggins is chief integration officer at Chartered Accountants Ireland, having previously served as chief executive of the Institute of Certified Public Accountants in Ireland (CPA Ireland). Eamonn previously served as a Technical Adviser for the IFAC Board from 2005 to 2011. Prior to this, he served as a Technical Adviser to two separate chairs of the IFAC Education Committee, the predecessor to the International Accounting Education Standards Board.

Mr. Siggins was elected Chairman of the Edinburgh Group in 2016. He was Secretary to the Edinburgh Group from 2004 to 2010 and has represented CPA Ireland within the Edinburgh Group since its formal establishment.

Prior to joining CPA Ireland, Mr. Siggins retired, with the rank of Captain, from the Irish Defence Forces after 14 years of service in a number of appointments in Ireland and with the United Nations peace keeping force in Lebanon.

Mr. Siggins is an Honours Graduate in Legal Science from the National University of Ireland, Galway, holds post graduate qualifications in Leadership and in Strategy and Innovation. He is also a member of the Institute of Directors.

Gail McEvoy served on the IFAC board from November 2013 to November 2019, having been nominated by the Institute of Certified Public Accountants in Ireland (CPA Ireland).

Ms. McEvoy previously served as a Technical Advisor for the IFAC Small and Medium Practices Committee. She is a Principal Partner of McEvoy Craig Accountants & Auditors. Ms. McEvoy is also a Director of the Drogheda Port Company.

A member of CPA Ireland since 1997, Ms. McEvoy served as its President and Vice President from 2010 to 2012. She was elected a Life Member of CPA Ireland in 2015.

Note to Editors: This article is available for IFAC member organizations to publish in their journals and/or websites. Email permissions@ifac.org for access and copyright information. 

An ­­­audit is probably the most common form of assurance worldwide but it’s not the only one, and in some cases, it might not be the right one. Small- and medium-sized entities (SMEs) are often not required by legislation to have an audit. Lacking the complexity of their larger counterparts, an audit doesn’t necessarily make sense for an SME, and the costs may outweigh the value added for these small operations. There are other forms of assurance that may be more cost-effective and better suited to meet their needs. SMEs can look to their accountants and their statement users to help them determine what level of assurance on their financial statements is most appropriate.

A review engagement, for example, is another form of assurance that can meet the needs of some SMEs without putting an undue strain on time and other resources.

What is a Review Engagement?

A review is a limited assurance engagement. It provides less assurance than an audit but more than a compilation engagement, which offers no assurance. The International Auditing and Assurance Standards Board (IAASB) revised International Standard on Review Engagements (ISRE) 2400, Engagements to Review Historical Financial Statements, in 2012. ISRE 2400 (Revised) is designed not only to provide an effective and consistent level of limited assurance on financial statements but also to allow for efficient delivery of the service proportionate to the complexity of the statements reviewed. The revised standard includes strengthened requirements and additional guidance to promote a clearer understanding of the nature of a review engagement.

Merits of a Review Engagement

SMEs that are not required by law to have an audit may still want some level of independent assurance to increase the credibility of their financial statements, for example, when seeking a loan from a bank. In these cases, a review can be an ideal solution. Additionally, since the work effort involved in performing a review engagement is generally less than that in conducting an audit, a review should be a more cost-effective option while still involving the financial reporting expertise of an independent professional accountant.

When to Conduct a Review Engagement

Under ISRE 2400 (Revised), a review engagement may only be performed when it both serves a rational purpose and is appropriate under the circumstances. An engagement without a rational purpose, for example, is one in which management unreasonably restricts the practitioner’s inquiries to specific individuals. A review may not be appropriate, for example, for complex entities, such as banks or insurance companies, for which inquiry and analytical procedures alone may not reduce engagement risk sufficiently. In these cases, an audit or a compilation engagement may be more appropriate.

Where Can I Learn More?

The IFAC Small and Medium Practices (SMP) Committee has developed a comprehensive guide to help IFAC member organizations and their members in practice, especially SMPs, understand and implement ISRE 2400 (Revised). The Guide to Review Engagements is planned for release in December 2013, which is also when the updated standard goes into effect (effective for periods ending on or after December 31, 2013).

Practitioners can use the guide to develop a deeper understanding of a review engagement conducted in compliance with ISRE 2400 (Revised) through explanation and illustrative examples. The guide also includes a number of appendices with key checklists and forms that practitioners can adapt to meet the requirements and circumstances in their particular jurisdiction.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession, held its 36^th Council Meeting in Seoul, South Korea, last week. As part of the meeting, IFAC held its annual seminar, Strengthening the Links of the Financial Reporting Supply Chain.

The seminar focused on the elements necessary to support high-quality financial reporting, including the drivers of audit quality, and the importance of oversight and regulation.

“Financial reporting and analysis are the foundations of economic development and efficient capital markets. They contribute to the integrity, accountability, and sustainability of our global economy,” said IFAC CEO Fayez Choudhury. “This year’s seminar looked at certain components of the financial reporting supply chain, how they can each be strengthened, and how the links and interactions between them can also be strengthened. This is essential for economic and social progress.”

“The speakers identified two important overarching challenges: understanding the interconnectedness of the components of the financial reporting supply chain, and the importance of sufficient talent and capacity at every stage of the chain,” continued Choudhury.

The seminar included high-profile speakers, including Albert Au, Chair, BDO Limited and SMP Committee member; Kenneth Chatelain, Partner, PwC Public Policy & Regulatory Affairs; Robert Dohrer, Global Leader, Quality & Risk, RSM International Limited; In-Ki Joo, Professor of Accounting, Yonsei University; Olivia Kirtley, Deputy President, IFAC; David Maxwell, Partner, Grant Thornton; Hwi Joon Park, former Vice President, Woori Investment & Securities; Tong-Wook Shim, Senior Vice President and Head of Finance, POSCO; Janine van Diggelen, Vice Chair, International Forum of Independent Audit Regulators; Kenneth Yap, CEO, Singapore Accounting and Corporate Regulatory Authority; Jae-hoon Yoo, Standing Commissioner of the Securities and Futures Commission under the auspice of the Financial Services Commission; and Kyung-Sik Yoon, Head of the Audit Quality Control Supervisory Service, KICPA. Warren Allen, IFAC President, Arnold Schilder, IAASB Chairman, and Lee White, CEO, Institute of Chartered Accountants Australia, moderated the sessions.

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. It is comprised of 179 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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