The International Public Sector Accounting Standards Board (IPSASB) has published Exposure Draft (ED) 47, Financial Statement Discussion and Analysis—a proposed new standard. The ED proposes minimum required content while still providing sufficient flexibility for entities to prepare and publish financial statement discussion and analysis that best portrays their specific circumstances.

Because of the close link between financial statement discussion and analysis and an entity’s financial statements, ED 47 proposes that:

• the guidance be issued as an International Public Sector Accounting Standard (IPSAS) with the same authority as IPSASs concerning accrual-based financial statements;
• financial statement discussion and analysis be prepared and presented in conjunction with an entity’s financial statements; and
• the qualitative characteristics governing preparation of financial statements be applied to financial statement discussion and analysis.

ED 47 includes implementation guidance and an illustrative example that show how an entity might prepare its financial statement discussion and analysis to comply with the proposed requirements.

IPSASB Chair Andreas Bergmann notes, “The purpose of the financial statement discussion and analysis is to provide additional information to users of an entity’s financial statements for accountability and decision-making purposes. Financial statement discussion and analysis complements and supplements the information in the accrual-based financial statements with further insights and perspectives.”

How to Comment
To access the Exposure Draft and the At-a-Glance document, which provides a summary of the Exposure Draft, or to submit a comment, please visit the IPSASB website at www.ipsasb.org. Comments on the Exposure Draft are requested by July 31, 2012. The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of this Exposure Draft to their members and employees.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC. The IPSASB receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the United Nations and the governments of Canada, China, New Zealand, and Switzerland.

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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Many entities establish internal audit functions as part of their internal control, risk management, and governance structures; effective coordination and communication between the external and internal auditors can contribute positively to the external audit. Recognizing this, the International Auditing and Assurance Standards Board (IAASB) today released International Standard on Auditing (ISA) 610 (Revised), Using the Work of Internal Auditors, which addresses the external auditor’s responsibilities if using the work of an internal audit function in obtaining audit evidence.

“Internal auditing standards and practices have continued to develop, as has the relationship between external and internal auditors. Equally, the expectations on the external auditor continue to evolve, particularly with recent heightened emphasis on audit quality and accountability,” stated Prof. Arnold Schilder, IAASB chairman. “Our standards must also evolve to take account of these changes. Our revision of this standard involved extensive input from, and liaison with, the regulatory community, which we believe has helped enhance the quality of the final standard.”

The revised standard is aimed at enhancing the external auditor’s performance by providing a more robust framework for evaluating and using the work of an entity’s internal audit function. Related changes have also been made to ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment, to explain how the internal audit function and its findings can usefully inform the external auditor’s risk assessments.

“The external auditor may be able to use the work of a robust internal audit function. Nevertheless, the external auditor has sole responsibility for the audit opinion expressed, and that responsibility is not reduced by the external auditor’s use of the work of the internal audit function,” notes James Gunn, IAASB technical director. “This revised ISA defines the conditions that are necessary for the external auditor to be able to use the work of internal auditors, including ensuring that the internal audit function’s work is adequate for the audit, and preventing overuse or undue use of such work.”

Both ISA 610 (Revised) and ISA 315 (Revised) are effective for audits of financial statements for periods ending on or after December 15, 2013.

Using Internal Auditors to Provide Direct Assistance
In revising ISA 610, the IAASB also agreed on requirements and guidance that specify the conditions and establish responsibilities of the external auditor if the external auditor intends to use internal auditors to provide direct assistance during the audit.

The IAASB has engaged closely with the International Ethics Standards Board for Accountants (IESBA) in relation to this matter. While the IAASB has concluded its deliberations on the requirements addressing direct assistance, it intends to incorporate such material in ISA 610 (Revised) only after the IESBA concludes its deliberations on its February 2012 exposure draft of proposed changes to the definition of “engagement team” in the Code of Ethics for Professional Accountants (IESBA Code). The IESBA exposure draft proposes to resolve a perceived inconsistency between the ISAs and the IESBA Code regarding the ability of external auditors to use internal auditors to provide direct assistance.

About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by IFAC.

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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The International Federation of Accountants (IFAC) seminar, The Sovereign Debt Crisis, a Matter of Urgency―From Lessons to Reform, convened key decision makers, politicians, public finance management leaders, and others over two days in Vienna. The presentations, debates, and discussions sought a comprehensive understanding of the causes contributing to the international sovereign debt crisis and conveyed a clear and consistent message that the fiscal stress and instability associated with the crisis need to be addressed urgently, through a radical reform of public financial management systems and institutions in many countries.

“We heard over these two days that the problems with financial management and reporting are not confined to a small handful of European countries, but are widespread. There is a real danger of the current sovereign debt crisis, coupled with the fiscal challenges of aging populations, deepening into a global fiscal crisis—and it is therefore more urgent than ever that we act to bring about a radical transformation in public financial management,” said Ian Ball, CEO of IFAC. “Our goal is enhanced transparency and accountability on the part of public sector entities around the world. This would achieve long-term fiscal sustainability, more effective and efficient governments, and reduced risk of new fiscal crises.”

Speakers included influential financial and accounting leaders, such as Vincenzo La Via, Chief Financial Officer of the World Bank Group; Göran Persson, former Prime Minister of Sweden; Hon. Ruth Richardson, former New Zealand Minister of Finance; and Hon. David Walker, Founder and CEO of the Comeback America Initiative and former United States Comptroller General (complete list attached).

Key findings of the seminar included:

• The sovereign debt crisis has identified a compelling and urgent need for governments to address seriously the quality of their public financial management systems and institutions.
• The fiscal risks associated with the aging population in many countries amplify the risks associated with poor fiscal measurement and management that have been exposed by the sovereign debt crisis.
• The current crisis has emphasized the deficiencies associated with cash-based accounting and budgeting.
• Governments need to adopt accrual accounting and budgeting to better measure and manage fiscal position.
• The adoption of International Public Sector Accounting Standards (IPSASs) is necessary to provide global consistency and comparability in public sector financial reporting.
• Accrual accounting and IPSASs are being successfully implemented in many countries, including Australia, Austria, New Zealand, Spain, Switzerland, and Sweden; these countries now have the tools for better resource allocation and fiscal decision-making.
• The accountancy profession has a key role to play in this transformation, and should be leaders and catalysts for change.
• Politicians, governments, and ministers of finance need to recognize the political advantages of high-quality financial management systems in absorbing and managing economic shocks.
• Conversely, politicians, governments, and ministers of finance need to recognize that the cost of failure in financial management can be a loss of sovereignty.
• Many stakeholders have a role to play: International organizations (like the Financial Stability Board) should consider the institutional changes necessary; citizens, investors, credit rating agencies, and auditors general need to be educated, communicated with, and engaged.
• The International Public Sector Accounting Standards Board must have strong governance and legitimacy, as well as financial and operational stability.

The Sovereign Debt Crisis, a Matter of Urgency—From Lessons to Reform took place March 19-20, 2012, at the Hilton Vienna. Event sponsors included CECCAR, Ernst & Young, PwC, and the World Bank.

For more information about the conference, visit https://sovereigndebt.ifac.org.

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.

Speakers for The Sovereign Debt Crisis, a Matter of Urgency—From Lessons to Reform included:

• Ian Ball, Chief Executive Officer, International Federation of Accountants
• Andreas Bergmann, Chair, International Public Sector Accounting Standards Board
• Jón Blöndal, Head of Budgeting and Public Expenditures, Organisation for Economic Co-operation and Development (OECD)
• Robert Dacey, Chief Accountant, the United States Government Accountability Office
• Prof. Dr. Roger J.M. Dassen RA, Global Managing Director Clients, Services and Talent, Deloitte Touche Tohmatsu Limited
• John M. Herhalt, Global Chair, Government and Infrastructure, KPMG LLP
• Ms. Belén Hernández, Public Accounting Directorate, Spain
• Vincenzo La Via, Chief Financial Officer, World Bank Group
• Bo Lundgren, Director General, Swedish National Debt Office
• Professor the Hon. Stephen Martin, Chief Executive, Committee for Economic Development of Australia
• The Hon. Ruth Richardson, Former New Zealand Finance Minister
• Göran Persson, Former Prime Minister of Sweden
• Gerhard Steger, Director General Budget and Public Finance Ministry of Finance, Austria
• Jan Sturesson, Leader Global Government and Public Services, PWC
• Göran Tidström, President, International Federation of Accountants
• James S. Turley, Chairman and Chief Executive Officer, Ernst & Young
• Nicolas Véron, Senior Fellow, Bruegel–Brussels, Visiting Fellow, Peterson Institute for International Economics–Washington, D.C.
• Hon. David M. Walker, Founder, President and CEO, Comeback America Initiative and Former Comptroller General of the U.S.
• Fritz Zurbrügg, Director, Swiss Federal Finance Administration

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, today released Policy Position Paper 4, Public Sector Financial Management Transparency and Accountability: The Use of International Public Sector Accounting Standards.

The paper sets out IFAC’s view that governments around the world must provide clear and comprehensive information regarding the financial consequences of economic, political, and social decisions, in order to protect the public as well as investors in government bonds. It is issued at a time when deficiencies in many governments’ financial management, transparency, and accountability have become more prominent, as a result of the worsening sovereign debt problems around the globe. Transparency and accountability can only be provided through a high-quality, robust, and effective accrual-based financial reporting system, which allows for government assets and liabilities (including debt) to be appropriately recorded, reported, and disclosed—and hence effectively monitored.

The most globally accepted high-quality accrual-based financial reporting system is the International Public Sector Accounting Standards (IPSASs), issued by the International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board supported by IFAC.

Speaking from the IFAC Sovereign Debt Seminar, which brings together key government, public sector, and accountancy professionals from all over the world to promote the need for enhanced public sector financial reporting, Ian Ball, chief executive officer of IFAC, said, “The sovereign debt crisis has highlighted the lack of transparency and accountability of governments, poor public finance management and public sector financial reporting, and the deficiency of institutions for fiscal management in many countries. Governments around the world must collectively embrace high-quality and uniform accrual-based standards for financial reporting in order to protect the interests of both investors and citizens. While the problems highlighted by the sovereign debt crisis cannot be solved by better reporting alone, they cannot be solved in the long term without it.”

IFAC’s global seminar, The Sovereign Debt Crisis, A Matter of Urgency—from Lessons to Reform, is being held March 19-20, 2012, in Vienna. The Seminar features prestigious guest speakers that include: Vincenzo LaVia, Chief Financial Officer of the World Bank Group; Hon. David Walker, Founder and CEO of the Comeback America Initiative and Former United States Comptroller General; and Göran Persson, Former Prime Minister of Sweden. 

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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Today over 200 delegates from 40 professional accountancy organizations in 36 countries convened in Singapore for the sixth annual IFAC Small and Medium Practices (SMP) Forum. Co-hosted with the Institute of Certified Public Accountants of Singapore (ICPAS), this year’s event featured a keynote address by Ms. Jessica Tan, Chairman of the Government Parliamentary Committee for Finance and Trade & Industry in Singapore, and speakers from the Singapore Business Federation (SBF) and Accounting and Corporate Regulatory Authority (ACRA) of Singapore.

Delegates from IFAC member bodies convened with representatives from the regulatory community, leading regional business associations, and international standard setters to discuss the hot-button challenges facing the SMP sector and to collaborate on the solutions on a global level. Plenary panel session topics included shaping regulations and standards and how SMPs can capitalize on emerging opportunities in an ever-changing marketplace.

In his opening remarks, IFAC Deputy President Warren Allen gave an overview of IFAC’s role in the changing SME/SMP landscape: “The results of the 2011 IFAC Global Leadership Survey highlighted that the needs of SMPs and small- and medium-sized entities (SMEs) continue to be a high-priority area among IFAC’s membership. This may be because SMEs—and the SMPs that serve them—often constitute the backbone of economic stability. Here in Singapore, for instance, SMEs and small components (subsidiaries, branches, etc.) of multinational corporations contribute up to half of gross domestic product (GDP). And that is why IFAC is speaking out to ensure that world leaders recognize that the small business sector is a public interest issue, and that policy, regulation, and standards are developed in a way that will facilitate the growth of this sector.”

ICPAS President Dr. Ernest Kan said, “ICPAS is honored to co-host this year’s SMP Forum with IFAC. The focus on SMPs and SMEs dovetails with ICPAS’ strategic focus on SMP development. In today’s complex global economic environment, SMPs and SMEs face unique challenges in value creation and capacity building. With the forum, we aim to provide a platform for international representatives to share insights on supporting this sector.”

IFAC SMP Committee Chair Giancarlo Attolini added, “We can see from the attendance here today and the high level of participation in the SMP Quick Poll throughout 2011 that IFAC members are committed to serving their SMP constituents. IFAC shares this commitment since small accountancy practices typically serve small businesses, and when small businesses prosper, their local economies tend to prosper as well. We believe that SMEs and SMPs can be a part of the solution to the global economic recession.”

For media enquiries:

 
About the IFAC Small and Medium Practices Forum

This annual event provides a unique, global platform for delegates of IFAC member bodies to learn, debate, and collaborate on the opportunities and challenges facing SMPs and their small- and medium-sized entity clients. Learn more at www.ifac.org/2012SMPForum. This year’s event was made possible by the generous support of its co-host, the Institute of Certified Public Accountants of Singapore, and the sponsorship of the following IFAC member bodies: Association of Chartered Certified Accountants; Body of Expert and Licensed Accountants of Romania (CECCAR); Certified General Accountants Association of Canada; Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili; CPA Australia; Hong Kong Institute of Certified Public Accountants; and Institute of Chartered Accountants in England and Wales.

About the Institute of Certified Public Accountants of Singapore
Established in 1963, the Institute of Certified Public Accountants of Singapore (ICPAS) is the national accountancy body that develops, supports, and enhances the integrity, status, and interests of the profession.

ICPAS accords the Certified Public Accountant Singapore (CPA Singapore) designation. The CPA Singapore is a professional in accountancy, finance, and business distinguished by their technical expertise, integrity, and professionalism, in addition to a recognized accountancy qualification and relevant work experience. CPAs Singapore serve every corner of the world in every industry. Many of them helm some of the most prominent local and international corporations. Presently, there are close to 25,000 members in ICPAS.

About the IFAC 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 collaborates with IFAC member bodies to develop guidance and tools and speaks out on behalf of SMPs and small- and medium-sized entities (SMEs) to raise awareness of their role and value. The committee also works to ensure that the needs of the SMP and SME sectors are considered by standard setters, regulators, and policy makers.

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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Countless entities around the globe—especially small- and medium-sized entities (SMEs)—look to professional accountants in public practice to assist in the preparation and presentation of their financial information. Recognizing the important role practitioners play in providing accounting and financial reporting expertise to entities in support of high-quality financial reporting, the IAASB today released International Standard on Related Services (ISRS) 4410 (Revised), Compilation Engagements, addressing such service engagements. 

“This is an important standard in the many jurisdictions where compilation engagements are commonplace, but also in jurisdictions where it is a relatively new service. This enhanced standard contributes to quality in these important engagements and ensures clear communications to users,” stated Prof. Arnold Schilder, IAASB Chairman. “While the standard is applicable to entities of all sizes and for all forms of historical financial information, the needs of SMEs, users of their financial information, and those who provide compilation services were key focus areas in our deliberations.”

ISRS 4410 (Revised) clarifies the practitioner’s role and responsibilities in a compilation engagement and matters that need to be considered when accepting such engagements, and emphasizes the importance of quality control. It also expands the traditional compilation engagement report to make clear to users the practitioner’s contribution to the compiled financial information presented by management, and the key features of a compilation engagement.

The revised standard is effective for compilation engagement reports dated on or after July 1, 2013.

About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by IFAC.

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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The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, today released a revised version of Policy Position Paper 2, A Single Set of Auditing Standards: Audits Of Small- And Medium-Sized Entities.

“IFAC reaffirms its view that a single set of auditing standards that can be applied to all audits is in the public interest,” stated Ian Ball, chief executive officer of IFAC. “A key objective of financial reporting is to provide users with relevant and reliable information for decision making; a single set of standards gives users confidence that audits—whether small or large, simple or complex—have been performed to the same high standards.”

The use of International Standards on Auditing (ISAs) for audits of small- and medium-sized entities has again been brought into focus following the release of the European Commission’s proposed audit legislation late last year.

“The International Auditing and Assurance Standards Board (IAASB)’s ISAs are designed to be applied in a manner proportionate to the size and complexity of an entity,” continued Prof. Arnold Schilder, chairman of the IAASB. “IAASB is committed to addressing the needs of small- and medium-sized entities and small and medium practitioners.”

Policy Position Paper 2, A Single Set of Auditing Standards: Audits Of Small- And Medium-Sized Entities, was first issued by IFAC in 2008. The main revisions to the position paper include updated references to:

• the Clarified ISAs;
• other standards that the IAASB has issued and that are relevant to small and medium practitioners; and
• tools and guidance made available to practitioners by IFAC and the IAASB.

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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La Federación Internacional de Contadores (IFAC), una organización mundial para la profesión contable con miembros y asociados en 127 países, celebra la traducción al español del Manual de Pronunciamientos Internacionales de Contabilidad del Sector Público, edición 2011.

Esta traducción al español fue realizada por profesores del Departamento de Contabilidad y Finanzas de la Facultad de Economía y Empresa de la Universidad de Zaragoza, España. Su revisión estuvo a cargo de un comité de revisión internacional integrado por expertos del sector público, procedentes de Argentina, Chile, México, España y Uruguay.

“Este Manual ofrece un conjunto integral de requisitos y directrices contables, creados específicamente para preparadores de estados financieros del sector público. Esta traducción al español se celebra especialmente debido al creciente aumento en el ritmo de adopción de estas normas en España y América Latina”, explica Andreas Bergmann, Presidente del Consejo de Normas Internacionales de Contabilidad del Sector Público (IPSASB).

El Director General de la IFAC, Ian Ball, expresó: “Contar con esta traducción facilitará y apoyará la adopción y la implementación de las Normas Internacionales de Contabilidad del Sector Público en países de habla hispana. Los problemas actuales de deuda pública que atraviesan muchos países de todo el mundo reflejan la profunda necesidad de reforma en el ámbito de los informes y la gestión financiera en el sector público. Esta traducción contribuirá a dicha reforma, como así también a mejorar la comparabilidad, la transparencia y la contabilidad en el sector público a nivel mundial”.

La IFAC presentará el seminario internacional: La crisis de la deuda pública: Una cuestión de urgencia. Desde las lecciones hasta la reforma, del 19 al 20 de marzo de 2012. El seminario contará con prestigiosos oradores invitados, entre los cuales se encuentran: Vincenzo LaVia, Director Financiero del Grupo del Banco Mundial; David Walker, Fundador y Director General de la iniciativa Comeback America y ex Contralor General de los Estados Unidos; y Göran Persson, ex Primer Ministro de Suecia. El seminario de dos días de duración incluirá debates sobre el papel de la adopción y la implementación de las Normas Internacionales de Contabilidad del Sector Público (IPSAS), el éxito de la contabilidad según el principio de devengo, el papel del profesional de las finanzas en la reforma y la convergencia, la complejidad de los informes de interés público y mucho más. Para obtener más información, escriba a sdseminar@ifac.org.

También se ha publicado, recientemente, la traducción al español del Estudio 14 del IPSASB: Transición a la base contable de acumulación (o devengo): Directrices para entidades del sector público.

Ambos proyectos fueron posibles gracias a la asistencia del Banco Mundial y a las contribuciones del Gobierno de España a través del Fondo Español para América Latina y el Caribe.  Estas publicaciones pueden descargarse gratuitamente en formato PDF de la página de Internet de la IFAC. Las publicaciones no se encuentran disponibles en formato impreso. La reproducción, distribución o difusión de estas publicaciones requiere el permiso de la IFAC. Para obtener más información, escriba a permissions@ifac.org. Para obtener un panorama general de las traducciones de publicaciones de la IFAC, visite la Base de datos de traducciones de la IFAC: www.ifac.org/about-ifac/translations-permissions/translations-database

Acerca del IPSASB
El Consejo de Normas Internacionales de Contabilidad del Sector Público (IPSASB) desarrolla normas contables y directrices para que utilicen las entidades del sector público. La IFAC facilita las estructuras y los procesos que respaldan las operaciones del IPSASB. El IPSASB recibe apoyo (tanto financiero directo como en especie) del Banco Mundial, el Banco Asiático de Desarrollo, las Naciones Unidas y los Gobiernos de Canadá, China, Nueva Zelanda y Suiza.

Acerca de la IFAC
La IFAC es la organización mundial para la profesión contable que se dedica a servir el interés público mediante el fortalecimiento de la profesión y la contribución al desarrollo de economías internacionales fuertes. La IFAC está compuesta por 167 miembros y asociados de 127 países y jurisdicciones, que representan a aproximadamente 2,5 millones de contadores en la práctica pública y en sectores como la educación, el Gobierno, la industria y el comercio.

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The International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 127 countries, welcomes the Spanish translation of the Handbook of International Public Sector Accounting Pronouncements – 2011 Edition.

This Spanish translation was undertaken by faculty members from the Department of Accounting and Finance, Faculty of Economics and Business Administration, at the University of Zaragoza, Spain. It has been reviewed by an international committee consisting of public sector experts from Argentina, Chile, Mexico, Spain, and Uruguay.

“This Handbook provides a comprehensive set of accounting requirements and guidance developed specifically for preparers of public sector financial statements. Due to the increasing pace of adoption in Spain and Latin America of these standards, this Spanish language translation is especially welcome,” said Andreas Bergmann, Chairman of the International Public Sector Accounting Standards Board (IPSASB).

IFAC’s Chief Executive Officer Ian Ball stated, “Availability of this translation will facilitate and support the adoption and implementation of the International Public Sector Accounting Standards in Spanish-speaking countries. The current sovereign debt issues in many countries around the world makes clear that financial management and reporting reform in the public sector is sorely needed. This translation will help contribute to that reform, as well as to enhanced comparability, transparency, and accountability in the public sector globally.” 

IFAC is presenting a global seminar, The Sovereign Debt Crisis, A Matter of Urgency—from Lessons to Reform, March 19-20, 2012.  The Seminar will feature prestigious guest speakers that include: Vincenzo LaVia, Chief Financial Officer of the World Bank Group; Hon. David Walker, Founder and CEO of the Comeback America Initiative and Former United States Comptroller General; and Göran Persson, Former Prime Minister of Sweden.  The two-day seminar will include discussions on the role of IPSAS adoption and implementation, the success of  accrual accounting, the role of the finance professional in reform and convergence, the complexity of public interest reporting, and more. For more information please contact sdseminar@ifac.org.

A Spanish translation of IPSASB’s Study 14 - Transition to the Accrual Basis of Accounting: Guidance for Governments and Government Entities was also recently published.

Both projects were made possible with the assistance of the World Bank and contributions from the government of Spain through the Spanish Fund for Latin America and the Caribbean. These publications can be downloaded free of charge in PDF format from the IFAC website. They have not been published in print format. Reproduction, distribution or dissemination of these publications requires permission of IFAC. Contact permissions@ifac.org for further information. For an overview of translations of IFAC’s publications, please visit the IFAC Translations Database: www.ifac.org/about-ifac/translations-permissions/translations-database.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. The structures and processes that support the operations of the IPSASB are facilitated by IFAC. The IPSASB receives support (both direct financial and in-kind) from the World Bank, the Asian Development Bank, the United Nations and the governments of Canada, China, New Zealand, and Switzerland.

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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The staff of the International Auditing and Assurance Standards Board (IAASB) today released Professional Skepticism in an Audit of Financial Statements, a new question-and-answer (Q&A) publication that re-emphasizes to auditors the importance of an attitude of professional skepticism when performing their role.

“The IAASB’s International Standards on Auditing (ISAs) explicitly recognize the fundamental importance of professional skepticism,” states Prof. Arnold Schilder, IAASB Chairman. “Nevertheless, adopting and applying a skeptical mindset is ultimately a personal and professional responsibility to be embraced by every auditor. It is an integral part of the auditor’s skill set, is closely interrelated to the fundamental concepts of auditor independence and professional judgment, and contributes to audit quality. The auditor’s education, training, and experience are therefore critical. Audit firms themselves have an important role to play in cultivating a skeptical mindset in auditors, as do regulators, oversight bodies, and those charged with governance.”

“The public expects high-quality audits. While what that means depends on one’s perspective, a defining feature is the exercise of professional judgment together with a ‘healthy dose’ of professional skepticism by the auditor. A skeptical attitude enhances the auditor’s ability to identify and respond to conditions that may indicate possible misstatement due to error or fraud and critically assess audit evidence,” notes James Gunn, IAASB Technical Director.

The Q&A publication focuses on the requirements and application material in the ISAs and the IAASB’s quality control standard that are of particular relevance to the proper understanding and application of professional skepticism during an audit of financial statements. In addition, answers are provided regarding what audit firms and auditors can do to enhance awareness of the importance of professional skepticism, identify aspects of an audit where professional skepticism may be particularly important, and how professional skepticism can be evidenced.

About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by IFAC.

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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