The International Auditing and Assurance Standards Board (IAASB) today released its plan for a post-implementation review of the clarified International Standards on Auditing (ISAs). In 2009 the IAASB concluded its five-year Clarity project to redraft and revise the ISAs. The post-implementation review is the second phase of the IAASB’s efforts to monitor the implementation of these standards. The review is focused on whether the clarified ISAs are being consistently understood and implemented in a way that achieves the IAASB’s goals in revising and redrafting them.

“With extensive uptake of the clarified ISAs throughout the world, in already more than seventy-five countries, now is the time to gain a deeper understanding of how the clarified ISAs are being used and implemented,” said Prof. Arnold Schilder, Chairman of the IAASB. “When this review is completed in 2013, the IAASB will be better able to assess whether there is need for further changes to the ISAs. Timely feedback on the clarified ISAs from a variety of stakeholders is therefore essential for this purpose and the IAASB’s objective of ensuring that its standards continue to be of the highest quality.”

Features of the post-implementation review, which involves gathering information about the use of the clarified ISAs during 2012, are set out in the IAASB’s Plan for a Post-Implementation Review of the Clarified International Standards on Auditing.

Recognizing the broad range of stakeholders that may be interested in providing feedback to the IAASB about the clarified ISAs and their implementation, the IAASB encourages and welcomes input from all interested parties for the purpose of the review.

How to Comment

To access the plan and details on how to provide input, visit the IAASB’s website. Input for the purpose of the review is requested by no later than October 31, 2012.

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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Ethics Standards Board for Accountants (IESBA) today released for exposure  Proposed Changes to the Code of Ethics for Professional Accountants Related to Provisions Addressing a Breach of a Requirement of the Code. The IESBA believes that any breach of a provision of the Code of Ethics for Professional Accountants (IESBA Code) should be treated as a matter of utmost importance. Therefore, the IESBA has proposed changes to the IESBA Code that will provide guidance to a professional accountant on the action to be taken in such situations. This includes a robust framework for addressing a breach of an independence requirement that will result in greater transparency. This Exposure Draft is the result of a project that commenced in 2010.*

The proposed changes to the IESBA Code include a requirement that a professional accountant take whatever actions that might be available as soon as possible to satisfactorily address the consequences of a breach of a provision of the Code.  For a breach of an independence requirement in the IESBA Code, a detailed framework is provided setting out the action to be taken. Specifically, the proposed changes would require a firm to:

• terminate, suspend, or eliminate the interest or relationship that caused the breach;
• evaluate the significance of the breach and determine whether action can be taken to satisfactorily address the consequences of the breach;
• communicate all breaches with those charged with governance and obtain their agreement with the proposed course of action; and
• document the actions taken and all the matters discussed with those charged with governance and, if applicable, any relevant regulators.

“The proposed changes to the IESBA Code should help to ensure that the significance of any breach of an independence requirement is discussed with those charged with governance, and that professional judgment is taken into account when taking action,” stated Ken Dakdduk, IESBA Chair. “An auditor resignation due to an independence violation—regardless of the magnitude of the violation—has potential consequences to the company, its investors, and the capital markets.  The proposed framework will guide accountants, and those charged with governance, in determining whether resignation is an appropriate outcome or whether a different outcome can be supported. In addition, disclosure will enhance transparency, and the proposed documentation requirement adds a degree of rigor to the process that will be very useful.”

How to Comment
The IESBA invites all stakeholders to comment on its proposals. To access the exposure draft and submit a comment, visit the IESBA’s website at www.ifac.org/Ethics/publications-resources. Comments on the exposure draft are requested by January 23, 2012.

*Note to Editors:
In 2010, the IESBA assessed the provisions in the IESBA Code that address a breach of an independence requirement, and concluded that a project should be undertaken to reconsider those provisions, including determining whether the provisions are needed and, if so, how the guidance can be enhanced with regard to scope and application. As a result of this project, the IESBA concluded that it is in the public interest to have an appropriate mechanism that can be consistently applied across all jurisdictions in order to provide companies, auditors, regulators, and similar authorities with a framework to evaluate the impact of an independence violation and determine whether the auditor's resignation is the only appropriate outcome.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA 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. It is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The IPSASB has approved the Consultation Paper Reporting Service Performance Information. The IPSASB considers that reporting service performance information is necessary to meet the objectives of financial reporting, which are to provide information that is useful to users of General Purpose Financial Reports (GPFR) for accountability and decision making. This project aims to present a principles-based approach to developing a consistent framework for public sector entities.

IPSASB Chair Andreas Bergmann stressed, “Service performance information is essential for accountability for the efficient and effective use of resources, service provision, and achievement public sector entities’ objectives. Service performance reporting can provide financial and non-financial, as well as quantitative and qualitative, information about the achievement of service delivery objectives in the current reporting period, as well as anticipated future service delivery activities and resource needs.”

Various public sector entities around the world currently report service performance information. In practice, such reporting is diverse. The objective of the IPSASB’s service performance information project has been to improve the consistency and comparability of such information across jurisdictions and between entities.

Overall, the Consultation Paper proposes a framework for reporting service performance information. The framework includes information on the scope of the service performance information reported, the public sector entity’s objectives, the achievement of those objectives, and a narrative discussion of the achievement of all the objectives. The Consultation Paper also proposes a standardized service performance information terminology and working definitions to enhance users’ understanding of service performance information reported as outlined in the proposed framework.

The Consultation Paper is available to download free of charge from the IPSASB website (www.ipsasb.org). The IPSASB encourages IFAC members, associates, and regional accountancy bodies to promote the availability of this consultation paper 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.

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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The International Public Sector Accounting Standards Board (IPSASB) has published Exposure Draft (ED) 46, Recommended Practice Guideline. This ED builds on a consultation paper issued in late 2009. ED 46 provides good practice guidelines on reporting on the long-term fiscal sustainability of a public sector entity, and particularly emphasizes that entities may be able to draw on projections that are already being made by other bodies, thereby ensuring a cost-effective approach.

The sovereign debt crisis has emphasized the significance of the fiscal condition of governments and other public sector entities to the global economy. There have been heightened concerns about the ability of governments to meet debt servicing obligations and the extent to which they can maintain current policies and meet current and future obligations related to entitlement programs, without raising taxes and contributions or increasing debt to unsustainable levels.

These concerns have emphasized the importance of providing projections of inflows and outflows of resources over the longer term, together with narrative explanations of the main risks facing governments and other public sector entities. This information allows the users of general purpose financial reports to assess the extent to which current policies are sustainable, and complements the financial statements, which remain at the core of public sector financial reporting.

“The continuing volatility in the world’s financial markets has reinforced the IPSASB’s conviction that  financial statements alone cannot provide all the information necessary to enable citizens, investors, and other users to evaluate the long-term fiscal sustainability of governments and public sector entities,” explained Andreas Bergmann, chair of the IPSASB. “ED 46 aims to provide straightforward guidance to entities to ensure that information on their fiscal sustainability is complete, relevant, and understandable. I encourage our constituents to give this ED full consideration, provide feedback, and assess the need to report on the long-term sustainability of their finances.”

This IPSASB project has continued to benefit greatly from the oversight of a Task Force with a wide membership, including standard setters with experience reporting on long-term fiscal sustainability, governments that have many years’ experience reporting on long-term fiscal sustainability, and supranational organizations, such as the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), and Eurostat, the statistical office of the European Union.

ED 46 is available to download free of charge from the IFAC website (www.ipsasb.org). 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.

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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The 2011-2012 IESBA Strategy and Work Plan, which sets the direction and priorities for the activities of the International Ethics Standards Board for Accountants (IESBA), has been approved by the IESBA, the IESBA Consultative Advisory Group, and the Public Interest Oversight Board.  The IESBA plans to build upon the strong base established by the revised Code of Ethics for Professional Accountants (the IESBA Code) issued in July 2009. The 2011-2012 Strategy and Work Plan is focused on three strategic areas: development of standards; adoption and implementation; and convergence.

The IESBA plans to develop additional guidance for professional accountants on identifying and addressing a conflict of interest, responding to suspected illegal acts, and dealing with a breach of an independence requirement of the IESBA Code. The IESBA will also consider recommendations of an IESBA Working Group tasked with reporting on the unique and challenging issues faced by professional accountants in small- and medium-sized entities and small- and medium-sized practices in complying with the IESBA Code.

“The 2011-2012 Strategy and Work Plan reflects the IESBA’s commitment to serve the public interest by setting high-quality ethical standards for professional accountants,” said Ken Dakdduk, IESBA Chair. “This commitment is also demonstrated by facilitating the convergence of international and national ethical standards, including auditor independence requirements, through the development of a robust, internationally appropriate code of ethics.”

To determine the best course of action for furthering its objective of achieving convergence of the IESBA Code and national standards and regulations, the IESBA will also consider input from regulators and national standard setters and compare key provisions in the IESBA Code to the standards and regulations of select jurisdictions.

Please visit www.ifac.org/Ethics to access the plan or to learn more about the IESBA.

About the IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA 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. It is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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International network of accounting firms Baker Tilly International Limited and Nexia International have been admitted as full members of the Forum of Firms (Forum), after confirmation that they have met the Forum's membership standards. This includes reporting that they have implemented a globally coordinated quality assurance program, have policies and methodologies based on the International Standards on Auditing (ISAs), and have met other specific requirements of the Code of Ethics for Professional Accountants.

Twenty-two other international networks of accounting firms are also full members of the Forum of Firms and continue to report their adherence to the Forum's membership obligations. A list of the Forum's members is available at www.ForumofFirms.org.

The Forum of Firms is an association that brings together international networks of accounting firms that 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.

“We are delighted at having Baker Tilly and Nexia join the Forum and their public commitment to International Standards on Auditing and rigorous quality control standards,” says Robert Dohrer, chair of the Forum of Firms. “With the addition of Baker Tilly and Nexia, three major networks have committed in 2011 to the Forum’s international standards quality benchmark—all 24 Forum members have an important role to play in contributing to public confidence in the accountancy profession and in financial reporting in general.”

In order to achieve full membership status, Baker Tilly International Limited and Nexia International had to commit to meeting the Forum's membership obligations, which require members to:

• maintain appropriate quality control standards in accordance with International Standards on Quality Control issued by the International Auditing and Assurance Standards Board (IAASB), in addition to relevant national quality control standards and conduct, to the extent not prohibited by national regulation, regular globally coordinated internal quality assurance reviews;
• have policies and methodologies for the conduct of transnational audits that are based, to the extent practicable, on ISAs issued by the IAASB; and
• have policies and methodologies that conform to the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics for Professional Accountants and national codes of ethics.

For additional details on the Forum of Firms, please visit: www.ForumofFirms.org.

About the Forum of Firms
The Forum of Firms is an association of networks of international accounting firms that perform transnational audits. Members of the Forum have committed to adhere to and promote the consistent application of high-quality audit practices worldwide, including the use of International Standards on Auditing, and the maintenance of appropriate quality control standards in accordance with International Standards on Quality Control issued by the International Auditing and Assurance Standards Board. Through their organizations, members also conduct globally coordinated internal quality assurance reviews on a regular basis and have policies and methodologies that conform to the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants. The Transnational Auditors Committee is the Executive Committee of the Forum of Firms and a committee of the International Federation of Accountants (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 164 members and associates in 125 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) is pleased to announce that the Public Interest Oversight Board (PIOB) has confirmed Professor Peter Wolnizer as Chair of the International Accounting Education Standards Board (IAESB), an independent standard-setting board supported by IFAC. This appointment will be effective January 1, 2012 for the 2012-2014 term. The PIOB is an independent body that oversees IAESB activities.*

As chair, Professor Wolnizer will lead the IAESB as it develops the professional knowledge, skills, values, ethics, and attitudes of the accountancy profession by promoting the adoption and implementation of the International Education Standards (IESs).  Additionally, he will guide the IAESB in its role as a catalyst in bringing together developed and developing nations, as well as nations in transition, and to assist in the advancement of accountancy education programs worldwide, particularly where this will assist economic development.

Professor Wolnizer is a professor of accounting at The University of Sydney where he served as Dean of the Faculty of Economics and Business for twelve years, from 1999 to 2010. Professor Wolnizer previously served a three-year term on the IAESB from 2004 to 2006. In addition, he chaired the Education Committee of CPA Australia from 2000 to 2009, and currently serves as CPA Australia's International Higher Education Adviser.

“It is an honor to be appointed as the chair of the IAESB,” said Professor Wolnizer. “I am pleased to have the opportunity take on this challenge, particularly as during my term we will be working through the IAESB’s aggressive timetable of continuing the revision and redrafting of the IESs.”

IFAC Chief Executive Officer Ian Ball added, “Professor Wolnizer is an excellent choice for the IAESB. Having previously served on the board, he has acquired keen insight into the operations and strategy of the IAESB.  His experience as both a practitioner and an educator will undoubtedly prove invaluable.”

For more information about the work of the IAESB, visit its homepage at www.ifac.org/Education. 

*Note to Editors
The Public Interest Oversight Board (PIOB) was formally established in February 2005 to oversee IFAC's auditing and assurance, ethics, and education standard-setting activities as well as the IFAC Member Body Compliance Program. The objective of the PIOB is to increase confidence of investors and others that such activities, including the setting of standards by the IAESB, are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.

About the IAESB
The IAESB (www.ifac.org/education) develops education standards, guidance, and information papers for use by IFAC member bodies under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAESB, and the IAESB 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 IAESB are facilitated by IFAC.

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. It is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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In a letter submitted this week, the International Federation of Accountants (IFAC), the global organization for the accountancy profession with members and associates in 125 countries, urged the G-20 leaders at their November 3-4, 2011 meeting in Cannes, France, to focus on three long-term initiatives aimed at promoting global economic stability and greater fiscal sustainability: 1) public sector financial reporting and management reforms; 2) global regulatory convergence; and 3) development of integrated reporting.

Address Public Sector Debt Problems: Encourage Review of Institutional Changes in Public Sector Financial Management and Adoption of Accrual-Based Accounting

In order to address the sovereign debt crisis, IFAC recommends that the G-20 commission the Financial Stability Board (FSB) to consider the institutional changes that are needed in public sector financial management to protect investors in government bonds, as well as the public. Further, the G-20 should actively encourage the adoption of accrual-based accounting and budgeting by governments and public sector institutions, which will promote greater transparency and accountability in public sector finances and allow for monitoring of government debt and liabilities for their true economic implications. IFAC also encourages the adoption and implementation of International Public Sector Accounting Standards (IPSASs).

“It is increasingly apparent to the general public that this is an urgent issue. The sovereign debt crisis engulfing the European Union and the government debt issues affecting the United States and potentially other countries around the world are cause for major concern,” said IFAC Chief Executive Officer Ian Ball. “The crisis highlights that fiscal management is clearly deficient in many countries, with inadequate constraints or incentives for governments to protect the public interest and investors. This failure of fiscal management is widespread and has economic consequences that will far exceed the impact of corporate reporting failures, such as Enron, WorldCom, Parmalat, and Lehman Brothers.”

Maintain Momentum for Regulatory Convergence, including Adoption and Implementation of International Standards

IFAC recommends that the G-20 strengthen its resolve for adoption and implementation of common global standards for financial reporting, auditing, and auditor independence, including International Financial Reporting Standards (IFRS), International Standards on Auditing (ISAs), and the auditor independence requirements set out in the Code of Ethics for Professional Accountants. These standards will enable the consistent interpretation of financial information around the world, which in turn will facilitate cross-border activity, promote economic and financial stability, and strengthen transparency and accountability in the capital markets. IFAC also urges the implementation of the recommendations contained in the recently submitted Private Sector Taskforce of Regulated Professions and Industries Report. In addition, IFAC encourages internationally consistent, robust regulation of credit ratings agencies.

The Needs of the Future: Support Integrated Reporting

IFAC calls on the G-20 to formally signal its support for the work of the International Integrated Reporting Committee (IIRC), a collaboration of leaders from the corporate, investment, accounting, securities, regulatory, academic, and standard-setting sectors, as well as civil society. The IIRC is currently developing an integrated reporting framework, which aims to bring together financial, social, and governance information in a clear, consistent, and comparable format. Integrated reporting links the strategy, governance, and financial performance of an organization with the social, environmental, and economic contexts in which it operates. As a result, the framework will help entities make more sustainable decisions and enable investors and other stakeholders to better understand an organization’s true performance. Integrated reporting will help governments and private sector entities better understand the longer-term impacts of financial and operating decisions on all areas of society.

“The global financial crisis showed us clearly that a focus on short-term risks and rewards can encourage behaviors that lead to disastrous outcomes,” said IFAC President Göran Tidström. “The accountancy profession’s involvement in the IIRC and the future of integrated reporting represent our efforts to mitigate the current financial crisis, avoid future crises, and contribute to a more sustainable, global economy.”

In conclusion, Mr. Tidström stated, “Problems that began as isolated issues have led to the global financial crisis—proving just how interconnected our world has become. We all have a stake in the solutions, and those solutions require a coordinated international approach. Global leaders should resist unilateral policy reform initiatives which potentially undermine the cause of convergence. Instead, we have an opportunity to enhance coordination and consultation with all stakeholders and work collectively to support global economic stability.”

The letter to the G-20 with the full recommendations is posted on the here.

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 164 members and associates in 125 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 125 countries, has released the Private Sector Taskforce (PSTF) Report to G-20 Deputies. The PSTF report presents a set of recommendations on how to promote regulatory convergence from the perspective of a number of financial professions and industries.

The PSTF was established in May 2011 at the request of the Presidency of the G-20.  The report provides the G-20 with an analysis of the development of financial policy and regulation, with the aim of facilitating economic stability in the world’s capital markets. The benefits of regulatory convergence are identified, as well as the inefficiencies and associated costs created by regulatory gaps. A range of possible scenarios and associated risks are thoroughly analyzed and explored, specific examples are given, and a set of recommendations are provided.

Coordinated by the International Federation of Accountants, the taskforce includes CFA Institute (CFA I); INSOL International; Institute of International Finance (IIF); International Accounting Standards Board (IASB); International Actuarial Association (IAA); International Corporate Governance Network (ICGN); International Insurance Society (IIS); and International Valuation Standards Council (IVSC).

“We have made great strides in regulatory convergence, but there is much more to be achieved. The Global Financial Crisis highlighted the importance of regulatory convergence—for example, the need for globally accepted high-quality standards across a number of areas, including financial reporting, auditing and auditor independence, as well as consistent implementation and enforcement—which are important for encouraging global economic stability,” said IFAC President Göran Tidström. “IFAC supports the G-20’s work to reform the international financial system and reduce informational uncertainty and risk, and thus avoid future financial crises. The PSTF report encourages the G-20 to maintain its current momentum towards international convergence, identifies existing gaps, and offers insightful recommendations. There will be no better time to progress these issues.”

The report stresses the necessity of open communication and transparent processes, as well as continued cooperation between national and regional regulators and professional and industry groups, in order to further develop global standards. It warns against the dangers of unilateral decision making, and advocates enhanced consultation and global cooperation on matters of regulatory reform, in order to avoid regulatory fragmentation.

“Enhanced coordination and consultation with all stakeholders is imperative,” said IFAC Chief Executive Officer Ian Ball. “Unilateral policy reform initiatives make it more difficult to achieve convergence—on the contrary, they constitute regulatory fragmentation. The PSTF report represents a collaborative effort by a diverse group of professions and industry bodies; we hope jurisdictions worldwide can likewise come together to support the cause of economic stability.”

The PTSF report with the full recommendations is posted 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 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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Over 50 senior audit professionals from 24 international networks of accounting firms met yesterday to share their perspectives on the topic of audit quality. The symposium, organized by the Forum of Firms, assembled a group of experts to discuss several elements of audit quality, in support of work currently being undertaken specifically by the International Auditing and Assurance Standards Board (IAASB).

"This symposium was designed to encourage participants to exchange views on audit quality from the perspectives of different stakeholders, including users, practitioners, and audit committees,” said David Maxwell, chair, Transnational Auditors Committee. “The discussion raised questions on how audit quality should be defined, as well as ideas for practitioners to consider implementing in their audits.”

The symposium commenced with an overview of the IAASB’s project to develop an international framework for audit quality. Set against this backdrop, the first of two panels debated the expectations of auditors by investors, regulators, and management and the role that those charged with governance have in contributing to audit quality. Having an understanding of the multiple perspectives on audit quality, participants then considered what practitioners can do to drive audit quality by focusing on the “audit inputs”—namely audit firm culture, qualities of audit personnel, and audit process.

"Audit quality is a topic that runs right to the core of the Forum of Firms mandate and mission—the more we all understand it, the more we all can do to strengthen it,” said Robert Dohrer, chair, Forum of Firms. “It is essential that all audit firms be engaged in the debate on this topic so that we can better consider how, as practitioners, we can better contribute to its advancement.”

About the Forum of Firms
The Forum of Firms is an association of networks of international accounting firms that perform transnational audits. Members of the Forum have committed to adhere to and promote the consistent application of high-quality audit practices worldwide, including the use of International Standards on Auditing, and the maintenance of appropriate quality control standards in accordance with International Standards on Quality Control issued by the International Auditing and Assurance Standards Board. Through their organizations, members also conduct globally coordinated internal quality assurance reviews on a regular basis and have policies and methodologies that conform to the Code of Ethics for Professional Accountants. The Transnational Auditors Committee is the Executive Committee of the Forum of Firms and a committee of the International Federation of Accountants.