This handbook brings together for continuing reference background information about the International Federation of Accountants (IFAC) and the currently effective pronouncements for the public sector issued by IFAC as of February 15, 2009.

To further help small and medium practices (SMPs) in the implementation of international standards, IFAC has published a Guide to Quality Control for Use by Small- and Medium-sized Practices. This non-authoritative implementation guide is intended to help SMPs understand and efficiently apply International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services, as redrafted under the IAASB's Clarity Project* (http://web.ifac.org/clarity-center/index).

Developed by CGA-Canada for IFAC's Small and Medium Practices (SMP) Committee, the guide uses an integrated case study to illustrate how to implement the requirements of ISQC 1, and includes two sample firm policy manuals and key checklists and forms. It can be downloaded from IFAC's online bookstore at www.ifac.org/Store/. A Microsoft Word version is available to allow for translation and adaptation by institutes and small firms.

Sylvie Voghel, SMP Committee Chair, remarked, "the guide will help SMPs provide high-quality services to their clients and contribute to improving audit quality."

In December 2007, the committee published IFAC's first implementation guide, the Guide to International Standards on Auditing for Use in the Audits of Small- and Medium-sized Entities (ISA Guide). Last year, this was IFAC's second most popular publication and has been translated into over 10 languages. An updated version, to support the redrafted ISAs and accommodate feedback from users of the current edition, is scheduled for release in December 2009.

These guides form part of the SMP Committee's strategy to provide comprehensive practical support for SMPs, in the form of implementation materials and web-based resources. For more information, visit the International Center for SMPs at www.ifac.org/SMP/, read the committee's strategy, and keep updated by signing up for the free quarterly SMP eNews.

About IFAC
IFAC (www.ifac.org/) 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 157 members and associates in 122 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high-quality performance by professional accountants in business and those working in small and medium practices.

An important means to build capacity in the accountancy profession in developing countries is through the development of accounting technicians. As part of its strategy to develop the accountancy profession worldwide, the International Federation of Accountants' (IFAC) Developing Nations Committee has released a new good practice guide entitled, The Education, Training and Development of Accounting Technicians. The new guide is designed to raise awareness of the role and value of accounting technicians in both the public and private sectors.The guide promotes the importance of having accounting technician-level programs in both developed and developing economies so that individuals have access to education and training. The guide also encourages professional accountancy organizations to support the development of accounting technicians by offering technician programs that lead to certification and membership in the organization.An important means to build capacity in the accountancy profession in developing countries is through the development of accounting technicians. As part of its strategy to develop the accountancy profession worldwide, the International Federation of Accountants' (IFAC) Developing Nations Committee has released a new good practice guide entitled, The Education, Training and Development of Accounting Technicians. The new guide is designed to raise awareness of the role and value of accounting technicians in both the public and private sectors.

The guide promotes the importance of having accounting technician-level programs in both developed and developing economies so that individuals have access to education and training. The guide also encourages professional accountancy organizations to support the development of accounting technicians by offering technician programs that lead to certification and membership in the organization.

"In developing and emerging economies, individuals often do not have the resources to qualify as professional accountants, but there is a strong demand by governments and organizations for skilled individuals to contribute to the financial reporting and decision-making process. The development of accounting technicians is important to fulfilling this gap and setting a pathway for qualified accounting technicians to develop further as professional accountants," states Ignatius Sehoole, chairman of the Developing Nations Committee.

About IFAC
IFAC (www.ifac.org/store) 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 157 members and associates in 122 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high-quality performance by professional accountants in business.

The International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), has completed its Clarity Project* with the release of the final seven clarified International Standards on Auditing (ISAs), following the consideration and approval by the Public Interest Oversight Board (PIOB) of due process.

As a result of this landmark achievement, auditors worldwide will have access to 36 newly updated and clarified ISAs and a clarified International Standard on Quality Control. The standards are all featured in a new Clarity Center on the IAASB website.

With the completion of the Clarity Project, the IAASB has issued all its auditing standards in a form designed to enhance the understanding and implementation of them, as well as to facilitate translation. The clarified standards are effective for audits of financial statements for periods beginning on or after December 15, 2009.

IAASB Chair Arnold Schilder remarked, "The significant accomplishment of bringing the Clarity Project to a close-on schedule-would not have been possible without the dedicated leadership of my predecessor, John Kellas, and the tireless efforts of the IAASB members and technical advisors. We are pleased to now make the full suite of standards available so that our stakeholders can take the necessary steps to ensure these standards are properly implemented in advance of their effective date."

Titles of the seven final clarified ISAs are as follows:

• ISA 210 (Redrafted), Agreeing the Terms of Audit Engagements;
• ISA 265, Communicating Deficiencies in Internal Control to Those Charged with Governance and Management;
• ISA 402 (Revised and Redrafted), Audit Considerations Relating to an Entity Using a Service Organization;
• ISA 700 (Redrafted), Forming an Opinion and Reporting on Financial Statements;
• ISA 800 (Revised and Redrafted), Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks;
• ISA 805 (Revised and Redrafted), Special Considerations-Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and
• ISA 810 (Revised and Redrafted), Engagements to Report on Summary Financial Statements.

The Clarity Center of the IAASB website features updated versions of each of the standards, which can be used as the basis for translations. These versions incorporate conforming amendments to the standards, as well as changes in the approved clarified ISAs as a result of a review for consistency and other matters of clarity agreed upon by the IAASB at its December 2008 meeting. The IAASB also plans to publish the set of clarified ISAs in a handbook, expected to be released in April 2009.

"We anticipate that the completion of the Clarity Project will bring further momentum to the convergence process," commented Jim Sylph, IFAC Executive Director, Professional Standards, emphasizing, "Implementation is the next priority and firms and others should take action at the earliest opportunity to deal with all the necessary aspects of implementation." National standard setters, IFAC member bodies, regulators and oversight bodies, and other stakeholders are encouraged to visit the Clarity Center for further information, including frequently asked questions (FAQs) and upcoming video modules.

About the IAASB and IFAC
The objective of the IAASB, an independent standard-setting board within IFAC, is to serve the public interest by setting high-quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB, and, as one element of that oversight, establishes the criteria for its due process and working procedures.

IFAC (www.ifac.org/) 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 157 members and associates in 122 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets ethics, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

* Key elements of the Clarity Project drafting conventions include: establishing an objective for the auditor with respect to the subject matter of each standard; clearly distinguishing requirements from guidance on their application; avoiding ambiguity through eliminating the present tense to describe actions by the auditor and using more imperative language where a requirement was intended; and other structural and drafting improvements to enhance the overall readability and understandability of the standards.

Members of the Forum of Firms are pleased to note the completion of the International Auditing and Assurance Standards Board's (IAASB) Clarity Project and are encouraging their members to plan now for the timely implementation of the revised International Standards on Auditing (ISAs).

"This is one of the most significant projects in the history of the IAASB.  Completion of this project will result in many improvements to the ISAs and significantly advance global convergence of auditing standards," states Forum of Firms Chair David Maxwell. "We congratulate the Board on its sustained efforts over the past two years to get the project completed on a timely basis."

The IAASB Clarity Project involves a comprehensive review of all ISAs and International Standards on Quality Control to improve their clarity and thereby their consistent application.

During the process, a number of standards, including those dealing with group audits, related parties, external confirmations, audit of accounting estimates, and the use of experts were also significantly revised in order to enhance audit quality in these key areas.

Thirty-six standards in all were revised or restated. The due process surrounding their development and approval has been reviewed and endorsed by the Public Interest Oversight Board, an independent body established by the international financial regulatory community. All 36 clarified ISAs come into effect for audits of financial statements for periods beginning on or after December 15, 2009.

"We have been encouraging Forum members to consider implementation matters as and when the standards were promulgated so they have sufficient time to update audit methodologies and training programs in advance of the effective date," emphasizes Nick Fraser, chairman of the International Federation of Accountants Transnational Auditors Committee, the executive arm of the Forum of Firms.  "However, there is no doubt that timely adoption of the ISAs by national regulators will also provide significant impetus in promoting  the convergence process, and we look forward to seeing rapid progress in this respect."

The Forum of Firms, formally established in 2002, is an association of international networks of accounting firms. These firms perform audits of financial statements that are or may be used across national borders. The Forum's goal is to promote consistent and high-quality standards of financial reporting and auditing practices worldwide. Accordingly, its members have committed to maintaining appropriate quality control standards in accordance with International Standards on Quality Control issued by the IAASB, to have policies and methodologies for the conduct of transnational audits that are based on ISAs, and to have policies and methodologies which conform to the IFAC Code of Ethics for Professional Accountants and national codes of ethics.

For additional details on the Forum of Firms, please visit: www.ifac.org/Forum_of_Firms/.

Financial leadership, measuring board performance, and managing strategic risk are among the topics covered in a new publication, Articles of Merit, released by the International Federation of Accountants (IFAC). This publication includes 11 previously published articles that were selected by IFAC's Professional Accountants in Business (PAIB) Committee as part of its annual Articles of Merit Award Program for Distinguished Contribution to the Roles and Domain of Professional Accountants in Business.

The winning article for 2008 is "Black Holes in Accounting" by Ron Lutka. First published in CMA Canada's monthly members' magazine, CMA Management, the article focuses on how professional accountants may better identify and address areas within their organizations that may be negatively impacting performance. It also aims to assist professional accountants in recognizing and preventing the causes of the problems within these areas.

For the first time in the history of the award program, professional accountants were invited to participate in the selection process. The PAIB Committee took into account these views when selecting the winning articles. Votes were collected through an online public voting process.

Although the articles were originally published before the extent of the financial crisis was fully known, many of the articles promote financial leadership and better practices for professional accountants in business, which are relevant in today's financial and economic climate. Other articles of merit cover topics and issues that have been highlighted as challenges for improving organizational performance and achieving sustainable growth.

The 2008 Articles of Merit, together with past issues, can be downloaded from the IFAC online bookstore (www.ifac.org/store). The 11 articles in the 2008 publication may also be individually downloaded from the IFAC bookstore.

About IFAC
IFAC (www.ifac.org) is the worldwide 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 currently comprised of 157 professional accountancy bodies in 122 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. IFAC, through its independent standard-setting boards, sets international standards of ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high-quality performance by professional accountants in business.

The Board of the International Federation of Accountants (IFAC) has extended Ian Ball's term as Chief Executive Officer until February 2013. Mr. Ball joined IFAC as its Chief Executive in March 2002, having previously served IFAC as Chair of its Public Sector Committee (now International Public Sector Accounting Standards Board) and as a member of its Nominating Committee. Prior to that, Mr. Ball was a Professor of Accounting and Public Policy, an international consultant in public management, an accounting standard setter, and a senior official in the New Zealand Treasury. 

"During these challenging financial times, IFAC is pleased to have a seasoned leader who can collaborate effectively with accountancy bodies worldwide, with regulators, with standard setters, and with governments and others in the international community to restore and strengthen the international financial system, while at the same time pursuing our mission and long-term strategies," comments IFAC President Robert Bunting.

During his tenure at IFAC, Mr. Ball has overseen the implementation of the IFAC Reforms, a series of initiatives designed to strengthen international audit, ethics, and accounting education standard-setting processes to achieve convergence to international standards and to ensure that the international accountancy profession is responsive to the public interest. These reforms included the launch of the Member Body Compliance Program, which requires members and associates to promote, incorporate, and assist in implementing international standards issued by IFAC and by the International Accounting Standards Board, and to meet requirements for quality assurance, investigation, and discipline activities.

In addition, under his leadership, IFAC has expanded its support for developing nations, for small- and medium-sized practices and enterprises, for the International Public Sector Accounting Standards Board, and for professional accountants in business.

About IFAC
IFAC (www.ifac.org) 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 157 members and associates in 122 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. The organization, through its independent standard-setting boards, sets international ethics, auditing and assurance, education, and public sector accounting standards. IFAC also issues guidance to encourage high-quality performance by professional accountants in business.

Following the March 2008 publication of the report, Financial Reporting Supply Chain: Current Perspectives and Directions, and in response to recommendations made within it, the IFAC Board established a Business Reporting Project Group, chaired by Charles Tilley, to study progress in the areas of governance, financial reporting, and auditing around the globe.

Accountancy leaders from around the world discussed   the global financial crisis, the needs of small- and medium-sized enterprises, and the ways in which professional accountants can contribute to rebuilding economic stability at meetings hosted by the International Federation of Accountants (IFAC) last week in New York.

IFAC convened 40 leaders of accountancy institutes and regional accountancy organizations at its annual Member Body Chief Executives Meeting. Participants heard presentations from Svein Andresen, Secretary General of the Financial Stability Forum, and Nicolas Veron, research fellow at Bruegel, a European economic policy research organization, on the causes of the financial crisis and some of the short- and long-term issues to be addressed. Accountancy leaders from developed and developing countries, along with representatives of the firms, discussed how they were addressing the crisis, including their roles in supporting members of the profession on issues such as ethics, fair value accounting, and going concerns, and in contributing thought leadership to the development of new regulations and policies.

“There was broad agreement that now, more than ever, our profession must be unified in our approach to addressing economic issues,” emphasizes IFAC President Robert Bunting. “IFAC is working closely with its member organizations to determine the best way forward in addressing matters related to the crisis.”

“Our independent standard-setting boards, particularly the International Auditing and Assurance Standards Board and the International Public Sector Accounting Standards Board, are expediting their work on standards and guidance that will help accountants employed in public practice and in government to address the issues they face in the current environment,” states IFAC Chief Executive Officer Ian Ball.

At the IFAC Board meeting on February 19^th and 20^th,  Board members also focused on issues related to the global financial and economic crisis, resolving to identify those areas where the profession’s expertise would be most useful and to reach out to organizations addressing issues related to the crisis.

A significant part of the Board discussions concentrated on the issues facing small- and medium-sized practices and small- and medium-sized entities (SMEs). Board members approved a process for exploring how IFAC can best support this important sector of the global economy and a proposal on this topic will be presented to the Board in June.  All IFAC members and associates, regional accountancy organizations, firms, and professional accountants will be invited to provide their input.

In addition, the Board approved for release a study on national initiatives related to the financial reporting supply chain. Based on a survey of its member bodies, the new publication, Developments in the Financial Reporting Supply Chain: Results from a Global Study among IFAC Member Bodies, acknowledges that progress has been made, but also reports that greater attention needs to be given to the following: corporate governance; financial reporting and, in particular, the adoption of suitable reporting standards for SMEs; financial auditing; and the usefulness of financial reports.

In other actions, the IFAC Board approved Roger Tabor, a member of the Professional Accountants in Business (PAIB) Committee since 2004, as Chair of the committee. A past president of CIPFA, Mr. Tabor brings 22 years of director-level experience in a major public service organization and a broad range of finance and planning experience to his new role as PAIB Committee Chair.

About IFAC
IFAC (www.ifac.org) 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 157 members and associates in 122 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. The organization, through its independent standard-setting boards, sets international ethics, auditing and assurance, education, and public sector accounting standards. IFAC also issues guidance to encourage high-quality performance by professional accountants in business.

The International Federation of Accountants (IFAC), the global organization for the accountancy profession, is seeking nominations for members of its boards and committees for 2010, including three chair positions on standard-setting boards. Five positions are designated for public members, who may be nominated by IFAC member bodies, by members of the public, or via a self-nomination. Seven positions are only open to nominations by the Forum of Firms.¹ Candidates for all other positions may be nominated by IFAC member bodies. Nominations must be submitted before April 15, 2009. All members of IFAC's boards and committees are expected to act in the public interest and must sign a declaration committing to act with integrity and in the public interest in their role within IFAC.

Nominations for Members and Chairs of Boards and Committees

Nominations can be submitted for the following boards and committees:

• IFAC Board;
• International Auditing and Assurance Standards Board;
• International Accounting Education Standards Board;
• International Ethics Standards Board for Accountants (including chair position);
• International Public Sector Accounting Standards Board (including chair position);
• Compliance Advisory Panel (including chair position);
• Developing Nations Committee;
• Professional Accountants in Business Committee;
• Small and Medium Practices Committee; and
• Nominating Committee.

The IFAC Nominating Committee will review the nominations to determine the best candidate for a specific position. IFAC strives for a geographical, professional, and gender balance on its boards and committees; nominations of candidates from varying backgrounds are therefore encouraged. However, the principle of the “best candidate for the job” is the overriding consideration.

Public Member Nominations
IFAC is also seeking nominations for one public member position on each of the following boards: the International Auditing and Assurance Standards Board, the International Accounting Education Standards Board, and the International Public Sector Accounting Standards Board. Two public member positions are open on the International Ethics Standards Board for Accountants. Public members must be seen to be independent of any special interests and to clearly represent the wider public interest. Nominees for the public member positions must have an adequate level of knowledge about the work of the respective standard-setting board, although they do not need to have a professional accountancy designation.

Nominations by the Forum of Firms
A total of seven positions on the standard-setting boards are open to nominations from members of the Forum of Firms: one on the International Auditing and Assurance Standards Board, two on the International Accounting Education Standards Board, and four on the International Ethics Standards Board for Accountants.

How to Submit Nominations
The Call for Nominations for IFAC Boards and Committees in 2010 describes the positions available and the qualifications required for each position, as well as the process for submitting nominations. It may be viewed on IFAC's website.

All nominations must be submitted by April 15, 2009 using the online Candidate Information System. For more information about the role and activities of each of IFAC's boards and committees, visit the designated pages on the IFAC website.

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 157 members and associates in 122 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. The organization, through its independent standard-setting boards, sets international ethics, auditing and assurance, education, and public sector accounting standards. IFAC also issues guidance to encourage high-quality performance by professional accountants in business.

¹The Forum of Firms is an association of international networks of accounting firms that perform audits of financial statements that are or may be used across national borders.