The IFAC Member Body Compliance Program Strategy 2011-2014 highlights the progress of the Compliance Program to date and includes initiatives to further improve the quality of the accountancy profession worldwide.

International Federation of Accountants Chief Executive Officer Ian Ball today praised the Pan African Federation of Accountants (PAFA) for its recent decision to adopt international standards in accounting and auditing, calling it “an important benchmark in underscoring the value of accountancy and the accountancy profession to governments and to business on the African continent.”

PAFA was launched in May 2011 and consists of 39 professional accountancy organizations from 34 African nations. Its General Assembly took the action at the inaugural meeting held May 4 in Tunis, Tunisia, resolving to adopt:

• International Standards on Auditing (ISAs) developed by the International Auditing and Assurance Board (IAASB);
• International Public Sector Accounting Standards (IPSASs) developed by the International Public Sector Accounting Standards Board (IPSASB);
• International Education Standards (IESs) developed by the International Accounting Education Standards Board (IAESB);
• International Financial Reporting Standards (IFRSs) developed by the International Accounting Standards Board (IASB);
• International Financial Reporting Standards for Small and Medium Enterprises (IFRS for SMEs) developed by the IASB; and
• Code of Ethics for Professional Accountants developed by the International Ethics Standards Board for Accountants (IESBA).

“ISAs provide the framework against which the auditor examines a company’s financial statements and judges whether they can be relied upon by investors, capital market participants, and policymakers,” Ball said. “The adoption of IPSASs, along with international standards on education and ethics, is particularly important in Africa, and so this resolution by PAFA is an important milestone. A sound financial infrastructure—in the form of high-quality, recognized standards in auditing, ethics, public sector accounting, and related regulation—is the only way that sustainable economic development is truly achievable as Africa seeks a larger role in the global economy.”

PAFA’s resolution reflects strong support for IFAC’s Statements of Membership Obligations (SMOs), which form the basis of the IFAC Member Body Compliance Program. SMOs serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest. PAFA’s resolution underscores the SMO requirements for IFAC members and associates to adopt and support implementation of international standards and maintain adequate enforcement mechanisms to ensure the professional behavior of their individual members.

The SMOs are issued under the IFAC Board’s authority, and the Compliance Advisory Panel (CAP), together with IFAC Compliance staff, is responsible for reviewing their continuing relevance and sufficiency.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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In February 2012, the PAO Development Committee hosted Mentoring Insights—The Mentor Perspective in Dubai, United Arab Emirates. The aim of the workshop was to facilitate and encourage information exchange regarding the various aspects of mentoring through a mixture of presentations and interactive discussion sessions.

The Monitoring Group (MG) has issued a public consultation on the governance arrangements for standard setting. IFAC recognizes the importance of ongoing review and dialogue to enhance these governance arrangements, and we welcome the opportunity to respond to this consultation.

IFAC encourages all key stakeholders and interested parties to consider responding to the MG consultation.

While in Kigali, Rwanda, for the CAP, which was hosted by the Institute of Certified Public Accountants of Rwanda (currently applying for IFAC membership), IFAC member body development staff and CAP members met with attendees of the East Africa Community Institutes of Accountants Chief Executive Officers (CEOs) Strategy Meeting. The meeting brought together leaders of the East African PAOs to discuss the Mutual Recognition Agreement (MRA) signed in September 2011.

The executives discussed developments and challenges within the accountancy profession and their organizations, including their IFAC Compliance Program Action Plan priorities. Members of the CAP noted the signing of the MRA between the five countries—Burundi, Kenya, Rwanda, Tanzania, and Uganda—represents a unique and positive step toward enhanced knowledge sharing and collaboration in the region, which has three IFAC members and one organization applying for associate status.

The meeting included a presentation from Vickson Ncube, CEO of the Pan African Federation of Accountants (PAFA), on the development of PAFA strategy and confirmation of its intention to apply for IFAC Recognized Regional Organization status in 2012.

The plan outlines the link between IFAC's activities and services in 2013 and its mission and strategies articulated in the strategic plan. It details the services planned to be delivered during 2013, the estimated costs of delivery of those services, the specific organizational and staffing matters to be addressed during 2013, and the 2013 budget to support the operations.

Members of the IFAC Member Body Development team were recently invited to present at a World Bank Financial Management Team of the Africa Region meeting, held in Washington, D.C. in Feburary 2012. The meeting gathered 45 members of the World Bank staff who work across the African continent. This presentation was given by Szymon Radziszewicz, IFAC Senior Technical Manager, on the IFAC Compliance Program, the Statements of Membership Obligations (SMOs) as a framework for a high-quality accountancy profession, and the current status of the profession thought-out Africa. In response to a request from the World Bank, IFAC staff highlighted the key themes in each SMO and the action plan process as well as support tools available from IFAC staff. The World Bank expressed their interest in how they could support the implementation of IFAC SMOs and action plans on the ground in individual nations. The meeting also included an open discussion that focused on the different ways the Compliance Program and the World Bank Financial Management team can increase collaboration.

Presentation given at the inaugural Steering Committee meeting for MOSAIC (Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration) in Jaipur, India, co-hosted by the Institute of Chartered Accountants in India and the Institute of Cost Accountants in India.

Additional information on MOSAIC is available in the launch press release and signing ceremony materials.

Over 40 participants representing 19 countries gathered in Dubai, United Arab Emirates, for IFAC’s Mentoring Insights – The Mentor Perspective workshop on February 17, 2012. The roundtable workshop brought together representatives from countries all over the world, including Australia, Canada, China, India, Kazakhstan, Nigeria, and the UK. Discussions centered around the drivers for undertaking mentoring; the areas in which support is most commonly sought; and the key success factors and challenges based on the experiences of those attending the event. The range of information gathered will be used to inform the PAO Development Committee Mentoring Program, and in particular the mentoring toolkit.

Below are some of the presentations given by attendees. The extended agenda for the event, Mentoring: The Path to Sustainable Development, and the Event Summary are also available.