The International Ethics Standards Board for Accountants^® (IESBA^®) seeks public comment by August 15, 2018 on its consultation paper, Professional Skepticism – Meeting Public Expectations.

In response to regulatory and other stakeholder feedback on the topic, the paper explores:

1. 1. The behavioral characteristics comprised in professional skepticism;
   2. Whether all professional accountants should apply these behavioral characteristics; and
   3. Whether the International Code of Ethics for Professional Accountants (including International Independence Standards) should be further developed to address behaviors associated with the exercise of appropriate professional skepticism.

Through this initiative, the IESBA also aims to reinforce the effective exercise of professional skepticism by auditors.

The consultation paper was developed following close coordination with the International Auditing and Assurance Standards Board (IAASB) and the International Accounting Education Standards Board (IAESB), and with advice from the IESBA Consultative Advisory Group.

The paper will form the basis for discussion with a wide range of stakeholders at a series of three global roundtables in Washington, DC, USA on June 11; Paris, France on June 15; and Tokyo, Japan on July 12.

To access the consultation paper and submit a comment by August 15^th, please visit.

IFAC (International Federation of Accountants) commissioned Gibson Dunn, a leading global law firm, to perform an independent qualitative and quantitative analysis of the public responses to the Consultation Paper published by the Monitoring Group: Strengthening the Governance and Oversight of the International Audit-related Standard-setting Boards in the Public Interest.

A large number of responses were received from stakeholders from around the world.

• The 179 responses included investors, standard setters, government auditors, regulators, researchers, individuals, accounting firms and professional organizations from a wide range of geographies.
• In any consultation, the input from all respondents must be considered. It should be noted that 74 professional accountancy organizations, or 41 percent of all respondents, felt strongly enough to provide comments. Notably, the overall, main conclusions from the report remained intact even when responses from these accountancy organizations were removed from the analysis.

The Gibson Dunn analysis highlighted marked differences of opinion across geographies and stakeholder groups on key proposals, but included several overall, main conclusions:

• Respondents generally criticized the premise of the Consultation Paper, namely that there are major concerns with the current standard-setting process. Respondents also expressed concern that a Public Interest Framework to evaluate change has not yet been issued and agreed.
• Respondents generally expressed skepticism regarding the broader governance changes proposed by the Consultation Paper.
• Respondents provided significant support for some operational changes proposed in the Consultation Paper.

After carefully reviewing the report IFAC has the following observations:

Broad support and agreement for any Public Interest Framework is necessary before any of the broader governance changes proposed can be properly assessed.

• While there was virtually universal agreement that any changes must be in the public interest, there was significant criticism that the proposed Public Interest Framework has not been released for consultation.
• The Public Interest Framework, agreed by stakeholders, should include multi stakeholder composition of both the standards boards and their oversight bodies, and should provide the umbrella within which all significant proposals can be evaluated and agreed as an integrated package by key stakeholders.

Seeking consensus on proposals which could have a significant global impact depends not only on the merits of the proposals but also on the way the process is conducted; a new multi stakeholder approach is needed.

• The way forward should be under the direction of a multi stakeholder group that will engage all key stakeholders in a broad, open and collaborative dialogue.
• The need for this multi stakeholder group is reinforced not only by the multi stakeholder elements that should undoubtedly form part of the Public Interest Framework but also by the differences of opinion that currently exist across geographies and stakeholder groups.
• Without this approach global agreement and international acceptance is unlikely.

Change and transition can bring significant disruption and risk that must be mitigated.

• Any steps taken must not jeopardize the existing widespread adoption of the International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) standards, their acknowledged high quality, or the standard boards’ current work plans.
• This concern is particularly relevant at a time when the standard-setting process must deal in a timely way with the impact of changes to complex accounting standards, as well as a rapidly changing technology and audit environment.
• Any changes proposed must be justified on a cost/benefit basis and have widespread international support, particularly as there is general agreement among respondents on the absence of significant problems with the current standard-setting processes.
• Forming a multi stakeholder group to take the process forward should assist in mitigating disruption and risk.

Steps to improve operational processes can and should be taken quickly.

• There is strong support for some operational changes.
• IFAC takes its responsibility to support the operations of the independent standard-setting boards very seriously.
• IFAC is reviewing identified operational areas with IAASB and IESBA leadership and other stakeholders to determine the actions they would agree can be taken now to improve the efficiency and effectiveness of the operations of the two boards in the public interest.

IFAC intends to actively engage with all stakeholders to seek a revised approach to improve the standard-setting process, that responds constructively to the feedback received, and that is:

• Grounded in a Public Interest Framework that needs to be agreed as a first step in the process.
• Under the direction of a multi stakeholder group.
• Designed to minimize disruption and risk.
• Focused on making agreed operational improvements.

IFAC welcomes stakeholders’ reactions to these observations.

Please send any comments to communications@ifac.org.

The International Auditing and Assurance Standards Board (IAASB) is seeking a highly qualified Technical Director.

Based in New York, the Technical Director position requires deep knowledge of audit and assurance, strong understanding of standard setting, and strong program and people leadership ability. The Technical Director serves a key role in the management of the IAASB, and works closely with the IAASB Chair and Deputy Chair to develop strategy, plan and implement the work program of the Board, and develop positive stakeholder relationships.

The Technical Director’s primary concern is for the quality of the material presented to the IAASB for deliberation and the robustness of the underlying development process. In addition, the Technical Director orchestrates the IAASB’s internal and external activity.

The successful candidate will be self-motivated, dynamic and proactive, and hands-on. He or she will have a strong staff development focus and experience in leading a professional team in a collaborative, multi-cultural environment. The successful candidate will also be confident and competent in dealing with others on technical audit and assurance matters, and effective at identifying technical concerns and developing solutions.

The position requires strong project management skills, both in regard to overseeing program deliverables and in taking initiatives from concept through execution. Strong written and oral communication skills are essential. Additionally, the candidate should be an articulate, confident communicator with stakeholders and media.

The international executive search firm Korn Ferry has been retained for this search. Interested candidates should contact Korn Ferry Practice Leader Arlene Kobayashi or Managing Consultant Liz Lebo.

For reference, the profile for the Technical Director IAASB can be found here. Application deadline closes June 15, 2018

Nearly 80% of jurisdictions worldwide have adopted International Standards for Auditing for mandatory audits, while more than 60% have fully adopted the international Code of Ethics for Professional Accountants, according to a new study by IFAC—International Federation of Accountants—on rates of adoption of international standards across 80 of the jurisdictions in which IFAC’s more than 175 member organizations operate.

High-quality international standards are essential pillars of the global financial architecture. Their adoption and implementation improve the availability of the high-quality financial information in the public and private sectors that improves decision making and ultimately results in greater economic growth, development, and accountability.

“This forward momentum is positive news for investors, governments, businesses of all sizes, global regulators and the public given these standards’ relevance to the entire global finance structure,” said Alta Prinsloo, Executive Director, Quality & Development. “Following comparable international standards enable businesses to produce financial information that decision makers can rely on.”

The data is included in a first-of-its kind report that assesses and publically reports on the global status of the adoption of international standards—International Standards: 2017 Global Status Report. The report details the high rates of adoption around the world, driven by IFAC and its member organizations, and positive results in several key areas, including ethics, financial reporting standards, and quality assurance, and provides examples of success and tools for continued progress.

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

The International Ethics Standards Board for Accountants (IESBA) seeks public comment by July 16, 2018, on its Proposed Strategy and Work Plan, 2019-2023.

Leveraging the completely rewritten and significantly strengthened International Code of Ethics for Professional Accountants (including International Independence Standards), the proposed Strategy and Work Plan projects the IESBA’s vision for the Code in the global economy. The IESBA’s future priorities and actions will be guided by three strategic themes:

• Advancing the Code’s relevance by keeping it fit-for-purpose for a rapidly changing world, and further strengthening ethical conduct and independence standards;
• Deepening and expanding the Code’s impact and influence through increased global adoption and implementation; and
• Enriching the IESBA’s perspectives and capacities through proactive stakeholder dialogue and co-operation.

The consultation paper was developed following extensive, wide-ranging engagement with stakeholders, including regulators, national standard setters and professional accounting organizations.

Please submit your responses by July 16, 2018 to ensure your views are considered.

IFAC, the International Federation of Accountants, today announced its first accountancy capacity building project in Southeast Asia. The project will assist the Myanmar Institute of Certified Public Accountants (MICPA) in its work to strengthen the accountancy profession in Myanmar. IFAC has selected the Association of Chartered Certified Accountants (ACCA) to partner with MICPA on the project.

ACCA will partner with MICPA to build a sustainable professional accountancy organization that can act as the cornerstone of the profession in the country. The project will deliver a strategic plan and new governance structure for MICPA, in consultation with key national stakeholders.

“This project will contribute to Myanmar’s ongoing economic reform in line with the new government’s policy of liberalization, which includes modernizing the accountancy profession,” said Alta Prinsloo, IFAC Executive Director, Quality & Development. “As the first project under this Program in Southeast Asia, it offers opportunity to make a positive impact in the region.”

Myanmar, currently in the process of democratic transition, is one of East Asia’s fastest growing economies. The new government is committed to attracting investment for sustainable growth, and its support of this project demonstrates its recognition of the critical role that the accountancy profession can play in this process.

This project is funded with UK aid from the UK government. In 2014, the UK Department for International Development (DFID) reached an agreement with IFAC to provide funding of almost £5 million for PAO capacity building in at least ten emerging countries over seven years. Projects under the IFAC Capacity Building Program using DFID funding are currently underway in several countries including Ghana, Kyrgyzstan, Rwanda and Zimbabwe.  Partner organizations are selected following global Calls for Expressions of Interest and an extensive proposal and review process by the IFAC PAO Capacity Building Program Independent Selection Panel.

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

About DFID
The Department for International Development (DFID) leads the UK’s work to end extreme poverty. We're ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit. For more information visit www.gov.uk/dfid.

About MICPA
The Myanmar Institute of Certified Public Accounts is a professional body of Certified Public Accountants in Myanmar. The mission of the body is to communicate with international accountancy bodies and to distribute information to its members. MICPA was found under the Myanmar Accountancy Council (MAC), a policymaking body of accountants and auditors.

The International Ethics Standards Board for Accountants^® (IESBA^®) today released a completely rewritten Code of Ethics for Professional Accountants that is easier to navigate, use and enforce. Beyond the new structure, the Code brings together key ethics advances over the past four years, and is clearer about how accountants should deal with ethics and independence issues.

While the fundamental principles of ethics have not changed, major revisions have been made to the unifying conceptual framework—the approach used by all professional accountants to identify, evaluate and address threats to compliance with the fundamental principles and, where applicable, independence. New Code highlights include: 

• Revised “safeguards” provisions better aligned to threats to compliance with the fundamental principles;
• Stronger independence provisions regarding long association of personnel with audit clients;
• New and revised sections dedicated to professional accountants in business (PAIBs) relating to:
  • preparing and presenting information; and
  • pressure to breach the fundamental principles.
• Clear guidance for accountants in public practice that relevant PAIB provisions are applicable to them;
• New guidance to emphasize the importance of understanding facts and circumstances when exercising professional judgment; and
• New guidance to explain how compliance with the fundamental principles supports the exercise of professional skepticism in an audit or other assurance engagements.

“This is a groundbreaking moment in the public interest. The Code is now a significantly strengthened platform, re-engineered for greater usability while maintaining global applicability. It underscores the importance of the fundamental principles for all professional accountants,” said IESBA Chairman Dr. Stavros Thomadakis. “Critical work begins now within firms, national standards setters, regulators and audit oversight bodies, educators, IFAC member bodies and others to promote awareness of the Code, and support its adoption and implementation.”

“I congratulate the IESBA on this significant achievement,” said Kristian Koktvedgaard, Chair of IESBA’s multi-stakeholder Consultative Advisory Group (CAG). “A strong international Code of Ethics is one of the defining characteristics of the global accountancy profession. Clearer, more usable and enforceable independence and ethics standards are essential to public trust in the profession. The new Code establishes a solid base for “future-ready” ethics standards, and I am pleased that the CAG contributed to its development.”

Renamed the International Code of Ethics for Professional Accountants^TM (including International Independence Standards^TM), the new Code becomes effective in June 2019. It is the culmination of extensive research and global stakeholder consultation. Stakeholders can now access the new Code on the IESBA’s website, where implementation resources and other supporting materials will be released throughout the period leading up to the effective date.

About the IESBA
The International Ethics Standards Board for Accountants 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. Please visit www.ethicsboard.org for more information, and follow us on Twitter @Ethics_Board.

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

The global search is underway for an exceptional individual to lead the International Auditing and Assurance Standards Board (IAASB) into its next era.

The Chair leads the IAASB’s strategic direction and development of high-quality international audit standards, as well as facilitates the consultative processes that underpin the board’s credibility and activities. The Chair develops and maintains effective relationships with international oversight authorities and regulatory bodies, national standard setters, investor and preparer communities, the audit practitioner community and other key stakeholders. The next IAASB Chair will also guide the board through any transitional period and change implementation arising from the IAASB reforms.

The successful candidate has significant, senior-level experience and is well recognized within professional and regulatory communities. He or she has effective leadership, diplomacy, communication, and strategic skills; demonstrated professional competency; and a strong commitment to the IAASB’s public interest mission. He or she also understands the significant travel commitment involved.

The IAASB Chair is appointed for a renewable three-year term, commencing January 1, 2019. A complete job description, along with application instructions, is available on the IAASB website. Applications are due May 20.

This global search is being conducted by the Interim Nominating Committee, which was formed in February 2018 to conduct the IAASB Chair nominations process and make a final recommendation to the IFAC Board and Public Interest Oversight Board. The Committee held its inaugural meeting on March 28 in New York to finalize the position description and outline the selection process. More information on the Committee is available online.

The Zimbabwean Ministry of Finance, the nation’s Public Accountants and Auditors Board (PAAB), IFAC (the International Federation of Accountants) and Chartered Institute of Public Finance and Accountancy (CIPFA), gathered more than 200 senior officials from central and local government to discuss next steps in Zimbabwe’s migration to accrual accounting based on International Public Sector Accounting Standards® (IPSAS®).

Opening the meeting, Finance and Economic Planning Deputy Minister Terence Mukupe reaffirmed the government’s commitment to high quality accrual-based public financial reporting as a cornerstone of sound public financial management and effective, efficient public service delivery.

The Chief Secretary, Office of the President and Cabinet, Dr. M.J.M Sibanda, sent a message of support that confirmed political backing at the nation’s highest level. He acknowledged the contribution of quality accrual-based public financial reporting to enhanced public sector transparency and accountability—an essential element in building trust and confidence in government amongst the people, as well as domestic and foreign investors.

Key development partners in Zimbabwe, including the European Union, International Monetary Fund, UK Department for International Development (DFID), United Nations Development Programme, and the World Bank, shared their expectations for PFM Reform in Zimbabwe. They encouraged the government to use the recently-completed Public Expenditure and Financial Accountability (PEFA) Assessment to develop a national PFM Reform strategy.

Participants actively identified accrual accounting implementation solutions, drawing on global, regional, and local best practices shared by the Chartered Institute of Public Finance and Accountancy (CIPFA), Organisation of English-speaking African Supreme Audit Institutions, the Government of South Africa, and Government of Tanzania.

As an essential partner to government, the accountancy profession committed to continued strengthening of central and local government accountancy capacity—including attendees being offered access to CIPFA’s Certificate in IPSAS.

Key outcomes highlighted by Zimbabwe’s Accountant General, Daniel Muchemwa, included the establishment of a policymaking steering committee that will be supported by an implementation working group comprising meeting participants. They will meet quarterly to establish a high level implementation strategy and monitor progress in the migration to accrual accounting.

The event was supported by IFAC and CIPFA, and funded with UK aid from the UK government.

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 more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

In 2014, the UK Department for International Development (DFID) reached an agreement with IFAC to provide funding of almost £5 million for PAO capacity building in at least ten emerging countries over seven years. One of the projects under the IFAC Capacity Building Program using DFID funding is currently underway in Zimbabwe.

About DFID

The Department for International Development (DFID) leads the UK’s work to end extreme poverty. We're ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit. For more information visit www.gov.uk/dfid.

About PAAB

The Public Accountants and Auditors Board, Zimbabwe (PAAB) functions in terms of the Public Accountants and Auditors Act [Chapter 27:12]. It is the regulatory body for the accountancy profession in Zimbabwe. The PAAB’s mission is to protect the financial interests of the people of Zimbabwe and those with interests in the Zimbabwean economy by ensuring the maintenance of high standards of professional performance by members of the accountancy profession to foster investment.