The Board of Trustees of the International Foundation for Ethics and Audit (IFEA, or the Foundation) celebrates the launch of the Foundation, which implements a key recommendation contemplated in the Monitoring Group’s July 2020 Recommendations, Strengthening the International Audit and Ethics Standard-Setting System.

The objective in establishing the Foundation is to move the International Ethics Standards Board for Accountants (IESBA) and the International Auditing and Assurance Standards Board (IAASB) to a new entity that is independent of the International Federation of Accountants (IFAC).

Under the new structure, IESBA Chair Ms. Gabriela Figueiredo Dias and IAASB Chair Mr. Tom Seidenstein serve as Co-CEOs of the Foundation. The Public Interest Oversight Board (PIOB) continues its role as an independent oversight board, supporting the public interest responsiveness of the international standards and the effective delivery of the boards’ strategies.

“Establishing the Foundation as an independent legal entity to house the IESBA and IAASB, which were previously within the IFAC structure, is an important step in strengthening the independence of the international standard-setting system for ethics, audit and assurance,” said Robert Buchanan, Chair Trustee of the Foundation.

“We are confident that the revised structure—with IFEA as the home of the standard-setting boards governed by a board of trustees that includes both PIOB and IFAC appointed trustees—is an important mechanism created by the Monitoring Group to reform with the profession and simultaneously enhance the independence of the standard-setting boards,” said Linda de Beer, Chair of the PIOB. “This, in conjunction with an independent nominations process housed within the PIOB through the PIOB Standard Setting Boards Nominations Committee, will continue to enhance the trust and confidence in the standard-setting process.”

Paul Munter, Co-Chair of the Monitoring Group, added, “The objectives of the Monitoring Group’s recommendations included achieving an independent and inclusive, multi-stakeholder standard-setting system, and fostering the development of timely, high-quality standards that are responsive to the rapidly changing environment while still being responsive to the public interest. We are confident that the new structure advances both objectives. We are pleased the recommended reforms are on track for full implementation through diligent, collective efforts, and the focus is now on the implementation of the resource and costing plans.”

Commenting on the new structure, Ms. Figueiredo Dias and Mr. Seidenstein stated, “We are delighted with the modernization of the standard-setting system and the progress already achieved under the new Foundation, including transferring board personnel from IFAC to IFEA, the approval of our 2023 budget, and the process to strengthen our technical staff, which is well underway. We welcome the myriad opportunities created by the Foundation’s establishment. As always, we are committed to the delivery of high-quality standards in service of the public interest, and to the faithful implementation of the reforms. We would like to thank IFAC for all its support to date, and for its continued involvement as the Foundation’s service provider.”

Accompanying today’s announcement is the launch of the Foundation’s website at www.ethicsandaudit.org. Stakeholders are encouraged to visit the website to learn more about the Foundation.

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About the Foundation
The International Foundation for Ethics and Audit is a nonprofit organization that supports high-quality, international ethics, audit, and assurance in the public interest. It does so through its two standard-setting boards, the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants. These boards develop and issue their standards independently and in accordance with an approved due process and the Public Interest Framework, overseen by the Public Interest Oversight Board. 

About the Public Interest Oversight Board
The PIOB is the global independent oversight body that seeks to improve the quality and public interest focus of the international audit, assurance, and ethics standards formulated by the international standard-setting boards: the IAASB and the IESBA. The PIOB’s ultimate goal is to ensure relevant audit, assurance and ethical standards that are responsive to the Public Interest, in order to enhance confidence in capital markets. For more information, please visit the PIOB website.

About the Monitoring Group
The Monitoring Group (MG) is a group of international financial institutions and regulatory bodies committed to advancing the public interest in areas related to international audit related standard-setting and audit quality. Further information can be obtained from the IOSCO website.

Notes to the Editor

• The Foundation’s Board of Trustees are appointed by the Members of the Foundation, comprised of the Monitoring Group, PIOB and IFAC. The Board of Trustees comprises six individuals, four of whom are nominated by the PIOB and two nominated by IFAC.
• IAASB and IESBA work closely together to ensure their standards are interoperable and complement each other. These standards strengthen public confidence in financial markets.
• IAASB and IESBA receive operational support from IFAC in accordance with a service level agreement between IFAC and the Foundation.
• The Monitoring Group and PIOB continue to work to secure sustainable, long-term, multi-stakeholder funding to provide financial support for the Foundation and all Monitoring Group Reforms.

The International Federation of Accountants (IFAC) today announced plans to revise the International Education Standards (IES) to bring greater focus to sustainability reporting and assurance competence and recognize the evolving role of professional accountants in this important area. IFAC anticipates launching a public consultation on proposed revisions to the standards in Q2 2024, marking a significant milestone for the global accountancy profession’s journey to advance sustainability disclosure standards that respond to the needs of investors and other stakeholders.

Extensive stakeholder outreach and research made it clear that while professional accountants’ skills and training are transferable to sustainability reporting and assurance, there’s a need for a focus on sustainability in the IES. The planned revisions will address this, including revised and new learning outcomes needed for professional development programs to best prepare future and current professional accountants for the increasing demands for sustainability reporting and assurance.

As IFAC commits to revising the IESs, in partnership with the IFAC International Panel on Accountancy Education, it encourages professional accountants to seize the opportunity to enhance their sustainability knowledge and expertise. IFAC CEO Kevin Dancey said, “As sustainability reporting and assurance become mainstream, professional accountants have a unique opportunity to lead and bring value. Professional accountants should begin their journey now to develop or enhance sustainability reporting and assurance abilities. It is imperative that we all commit to personal professional development, ensuring that we are ready to meet the moment with the competence and due care that define our profession.”

Professional accountancy organizations have crucial roles to play helping their members as they transition to increasing market demand for sustainability reporting and assurance. Collective action is needed at the global, regional and local levels to accelerate the pace at which existing knowledge is expanded upon. IFAC encourages its member organizations to enhance current learning requirements with respect to sustainability and to recognize those courses offered by others—including the IFRS Foundation's anticipated eLearning course, which may prove useful to PAOs to offer their members as it is designed to respond to market demand to begin implementing the inaugural IFRS Sustainability Disclosure Standards, IFRS S1 and S2.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

About the International Education Standards
The International Education Standards (IESs), issued by the International Federation of Accountants, set forth the principles that professional accountancy organizations should follow to build a national accountancy profession that is fully capable of fulfilling the complex demands economies and societies place on it. The IESs are authoritative and are used by IFAC member organizations when setting education requirements for professional accountants and aspiring professional accountants.

Dans leur rapport conjoint intitulé Protection des lanceurs d’alerte : Comprendre les lois, les pratiques, les tendances et les principaux aspects de la mise en œuvre, l’International Federation of Accountants (IFAC) et Comptables professionnels agréés du Canada (CPA Canada) présentent une analyse du sujet fondée sur des données probantes et des points de vue pratiques.

Élaboré avec l’apport du Whistleblowing International Network, ce rapport vise à renseigner les organisations professionnelles comptables, les professionnels comptables, les autorités compétentes et les décideurs partout dans le monde sur les questions relatives à l’adoption et à la mise en œuvre de lois sur la protection des lanceurs d’alerte ainsi que sur les facteurs à prendre en considération en matière de politique publique pour s’assurer que les cadres locaux sont adaptés aux besoins. Le rapport s’appuie sur le rapport publié par l’International Bar Association and Government Accountability Project en 2021, intitulé Are Whistleblowing Laws Working? A Global Study of Whistleblower Protection Litigation, qui expose les difficultés liées à l’élaboration et à la mise en œuvre de cadres efficaces.

Kevin Dancey, chef de la direction de l’IFAC, a précisé ce qui suit : « Les lanceurs d’alerte sont largement reconnus pour leur rôle central dans la mise au jour d’irrégularités financières, de crimes économiques et de cas de fraude et de corruption. Pour protéger et soutenir leur apport, et pour promouvoir la confiance et l’intégrité dans les secteurs public et privé, des lois strictes sont nécessaires. Dans le cadre de son engagement à agir dans l’intérêt public, la profession comptable doit se battre pour mettre en place des pratiques éthiques et responsables visant à protéger les lanceurs d’alerte contre les représailles et s’assurer que les auteurs d’actes répréhensibles ont des comptes à rendre. »

Pamela Steer, présidente et chef de la direction de CPA Canada, a quant à elle fait la déclaration suivante : « Bien que l’expansion considérable de l’activité législative dans ce domaine soit encourageante, force est de constater que les lois sur la dénonciation à l’échelle mondiale sont généralement peu efficaces. Pour que les mesures législatives puissent contribuer à la prévention et à la détection de la corruption dans le monde entier, les gens doivent savoir qu’il existe des lois et des pratiques qui ont un effet tangible, ce qui exige une transparence, une action et une sensibilisation continues. »

L’IFAC et CPA Canada tiendront une discussion en ligne le 12 décembre 2023, de 9 h à 10 h 30 (HE), au sujet de l’évolution des lois sur la protection des lanceurs d’alerte. Le webinaire se veut un forum où experts, décideurs, professionnels de la comptabilité et juristes pourront échanger sur le rôle des lanceurs d’alerte et sur les solutions possibles à certains grands problèmes sociaux. Inscrivez-vous dès aujourd’hui pour rester au fait de l’évolution de la question.

À propos de l’IFAC
L’IFAC est l’organisation mondiale de la profession comptable; elle est vouée à servir l’intérêt public en renforçant la profession et en contribuant au développement d’économies solides à l’échelle internationale. Elle compte 180 organismes membres et associés qui sont présents dans plus de 135 pays, et qui représentent des millions de comptables professionnels travaillant en cabinet, dans l’enseignement, dans la fonction publique, en entreprise ainsi que dans le secteur commercial.

À propos de CPA Canada
Comptables professionnels agréés du Canada (CPA Canada) est l’une des organisations comptables nationales les plus importantes au monde, représentant la profession comptable canadienne sur la scène nationale et internationale. Forte de plus de 220 000 membres, CPA Canada soutient la profession et agit dans l’intérêt public en faisant la promotion de la transparence des marchés des capitaux, en préparant ses membres aux défis posés par l’évolution constante du monde des affaires et en contribuant à l’élaboration de normes et de politiques publiques. Au pays, elle collabore avec les ordres de CPA des provinces et des territoires qui réglementent la profession en vertu du pouvoir que leur confère la loi. À l’étranger, elle travaille avec des organisations internationales pour renforcer la profession comptable partout dans le monde. cpacanada.ca/fr

The International Federation of Accountants (IFAC), which comprises 180 member organizations and represents millions of professional accountants globally, congratulates the International Auditing and Assurance Standards Board (IAASB) on its new standalone standard for audits of less complex entities. The International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE, is proportionate and tailored to the nature and circumstances of audits of smaller and less complex entities. Built on the foundation of the International Standards on Auditing (ISAs), it contains all the requirements necessary to obtain reasonable assurance.

IFAC CEO Kevin Dancey said: “IFAC has closely engaged with the IAASB throughout development of the ISA for LCE and provided extensive feedback on behalf of practitioners around the world. Our support is driven by the importance of less complex entities to all economies and our consistent understanding of the urgent need for action at the global level to address the significant risk of fragmentation to the international standard-setting ecosystem due to national and regional initiatives.”

Now that the ISA for LCE has been issued, IFAC encourages its member organizations to adopt or advocate for adoption of the ISA for LCE in their jurisdictions or promote voluntary use of the standard. IFAC’s member organizations—professional accountancy organizations (PAOs) around the world—are essential to how international standards are adopted and implemented given their relationships with the regulators and oversight bodies that often have ultimate or shared adoption authority.

In 2024, IFAC will begin gathering data about potential adoption plans and evaluations at the jurisdiction level, with the intention of reporting examples and other relevant data in the future as it does with other international standards and best practices that IFAC member organizations are required to adopt, implement, and report on. IFAC will also continue to closely coordinate with the IAASB on its adoption and implementation activities, including collaborating on global webinars and consideration of any future materials.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

In their new joint report, Understanding Whistleblower Protection: Laws, Practices, Trends and Key Implementation Considerations, the International Federation of Accountants (IFAC) and Chartered Professional Accountants of Canada (CPA Canada) offer evidence-based research and practical perspectives on whistleblower protection legislation.

The report, developed with contributions from the Whistleblowing International Network, provides professional accountancy organizations (PAOs), professional accountants, relevant authorities, and policymakers globally with insights on current issues in adopting and implementing whistleblower protection legislation, and key policy considerations to help ensure that local frameworks are fit for purpose. The report builds off the International Bar Association and Government Accountability Project report published in 2021, Are Whistleblowing Laws Working? A Global Study of Whistleblower Protection Litigation, which highlights challenges to developing and implementing effective whistleblower protection frameworks.

Kevin Dancey, IFAC CEO, said: “Whistleblowers are widely recognized for the pivotal role they play in exposing financial wrongdoing, economic crimes, fraud, and corruption. Robust protection laws are needed to safeguard and support their contributions and promote trust and integrity in the public and private sector. The accountancy profession, with its strong public interest commitment, must champion means of protecting whistleblowers from retaliation and help ensure accountability for wrongdoers to foster ethical and responsible business.”

Pamela Steer, CPA Canada President and CEO, said: “While the significant expansion of legislative activity in this space is encouraging, it’s also evident that whistleblowing laws have generally fallen short in terms of their effectiveness. For whistleblower protection laws to positively contribute to the prevention and detection of corruption worldwide, people need reassurance that laws and practices exist and are working effectively—and this requires continuous transparency, action and education.”

IFAC and CPA Canada are hosting an online launch event on December 12, 2023, from 9:00 -10:30 am EDT to connect with experts about the ever-evolving realm of whistleblower protection legislation. The webinar will provide a platform for experts, policymakers and accountancy and legal professionals to discuss the role of whistleblowers and how they can help address some of the most serious issues facing society. Register today to stay current on this changing landscape.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

About CPA Canada
Chartered Professional Accountants of Canada (CPA Canada) is one of the largest national accounting organizations in the world, representing the Canadian accounting profession at the national and international levels. With over 220,000 members, CPA Canada supports the profession and acts in the public interest by promoting transparency in financial markets, preparing members for a rapidly evolving business environment and contributing to standard setting and public policy. Domestically, CPA Canada works with the provincial and territorial CPA accounting bodies who have the statutory authority to regulate the profession. Globally, it works together with international bodies to build a stronger accounting profession worldwide. cpacanada.ca

The International Auditing and Assurance Standards Board (IAASB) today published the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE. The ISA for LCE is a standalone global auditing standard designed specifically for smaller and less complex businesses and organizations. Built on the foundation of the International Standards on Auditing (ISAs), audits performed using this standard provide the same level of assurance for eligible audits: reasonable assurance. The standard is effective for audits beginning on or after December 15, 2025 for jurisdictions that adopt or permit its use.

“The ISA for LCE underscores the IAASB’s commitment to ensuring the credibility and reliability of financial reporting for entities of all sizes. By leveraging the International Standards on Auditing as our starting point, we are cultivating an environment where audits are performed in a globally consistent and high-quality way for the smallest entities. The IAASB’s actions seek to inspire greater confidence and contribute to the overall stability and trustworthiness of information in the external reporting ecosystem. We have also heard that this standard should provide an impetus for the evolution of auditing in developing economies,” said IAASB Chair Tom Seidenstein. “We now turn to each jurisdiction and their oversight authorities and regulators to decide whether to adopt the standard. We encourage practitioners and others to reach out to the authorities in their jurisdictions to advocate for the ISA for LCE’s adoption.”

Released alongside the ISA for LCE are a Basis for Conclusions, which details feedback from the public consultation period, a high-level fact sheet, and a frequently asked questions document. Additional materials to help jurisdictions navigate adoption will be issued in 2024, including supplementary guidance, a fact sheet on adoption, and a first-time implementation guide. All materials can be accessed on the IAASB website: iaasb.org/ISAforLCE

About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions

As the global voice of the accountancy profession, IFAC has long supported the establishment of the International Sustainability Standards Board (ISSB) to develop a comprehensive global baseline of sustainability disclosures—now endorsed by IOSCO and ready to be adopted and implemented around the world.  To demonstrate our commitment to seeing this initiative succeed, IFAC signed on as an inaugural member of The ISSB Partnership Framework for Capacity Building, launched one year ago at COP27 in Sharm El-Sheikh, to support preparers, investors and other capital market stakeholders to use IFRS Sustainability Disclosure Standards.

One year later, the IFRS Foundation’s new Knowledge Hub is being launched to help fill the “knowledge gaps” which must be addressed in the short-, medium- and long-term to achieve the goal of a harmonized system for high-quality sustainability-related financial information, a global baseline established via the ISSB Standards.

Education materials, like the forthcoming IFRS Foundation e-learning curriculum and the content IFAC and others contribute to the IFRS Foundations new Knowledge Hub, will assist professional accountants, and others, in applying IFRS S1 and IFRS S2 and can provide a starting point for IFAC Member Bodies who plan to promote sustainability competency and learning amongst their professional membership.

IFAC’s policy, advocacy, and thought leadership work—including benchmarking of sustainability-related financial disclosures and assurance practice, advocacy for adoption of IFRS S1 and IFRS S2 using a Building Blocks approach, and guidance for professional accountants working inside of companies—all contribute towards building capacity within the accountancy profession and we urge our Member Bodies around the world to join in this effort. 

IFAC CEO Kevin Dancey said, “Professional accounting organizations (PAOs) and the largest global accountancy networks (i.e., the Forum of Firms) must be leaders in capacity building and education.  Professional accountants—who are subject to the IESBA Code of Ethics—have a critical role to play in transforming high-quality standards into high-quality information, and then providing assurance on that information in accordance with standards developed by the International Auditing and Assurance Standards Board.”

The role of the accountancy profession will come into sharper focus as sustainability-related reporting and its assurance transitions from voluntary practice to mandatory requirements around the world.  IFAC’s new publication on integrated internal control, Building Trust in Sustainability Reporting: The Urgent Need for Integrated Internal Control, demonstrates the critical role and expertise of professional accountants related to data, systems, processes, and internal controls—all necessary for companies to deliver high-quality, decision-useful information for investors, capital markets, and all stakeholders.

IFAC Contributions to ISSB Knowledge Hub:

• Building Trust in Sustainability Reporting – The Urgent Need for Integrated Internal Control
• Greenhouse Gas Reporting Building Blocks for Accountants
• A Building Blocks Approach for Reporting Sustainability-Related Information
• How Global Standards Become Local: Using the Sustainability Building Blocks
• The State of Play:  2019 – 2021 Trends & Analysis
• The State of Play, Beyond the G20
• Getting to Net Zero: A Global Review of Corporate Disclosures
• The Role of the CFO and Finance Function in the Climate Transition

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants (IFAC) is pleased to announce Mr. Charles Tilley OBE, FCMA, CGMA of the UK, as the esteemed recipient of the 2023 IFAC Global Leadership Award, celebrating his influence and dedication to the global accountancy profession.

Charles Tilley, a renowned advocate for integrated reporting and integrated thinking, played a pivotal role in the development of the Integrated Reporting Framework, the conception of the International Integrated Reporting Council (IIRC), and later became CEO of the IIRC. He oversaw the merger of the IIRC and the Sustainability Accounting Standards Board (SASB) into the Value Reporting Foundation, which was subsequently integrated into the IFRS Foundation. His ongoing contributions to integrated reporting and thinking continued while chairing the IFRS Foundation’s Integrated Reporting and Connectivity Council, providing advice to the Foundation’s trustees and to its two standard-setting boards.

For 15 remarkable years, as the Chief Executive of the Chartered Institute of Management Accountants (CIMA), Mr. Tilley brought about transformation in the positioning of management accounting and professional accountants in business and the public sector within the profession and in society. His relentless efforts have elevated the relevance of the profession in the context of the needs of organizations and capital markets. His post-2008 global financial crisis endeavors focused keenly on fortifying trust in the capital markets, emphasizing ethics and good governance and the critical role of professional accountants in long-term value creation.

Mr. Tilley’s visionary leadership was further evident when he orchestrated a landmark partnership culminating in the formation of the Association of International Certified Professional Accountants and the inception of the Chartered Global Management Accountant (CGMA) designation. 

Throughout his career, Mr. Tilley has steered the direction of management accounting thought leadership. This encompasses developments in both external and internal reporting, performance management, and the progressive evolution of the CFO and finance function roles. Under his visionary leadership from 2014 to 2019, the Professional Accountants in Business (PAIB) Advisory Group underwent transformative changes, fostering enhanced collaboration and thought leadership on behalf of the global profession. His tenure witnessed the inception of significant initiatives such as the future-ready CFO series and the exploration of the CFO's role in value creation.

This designation now stands as a global hallmark of excellence in management accounting and finance leadership.

"Charles is not only a trailblazer in the accountancy realm but also an inspirational figure who has tirelessly championed change, innovation, and ethical practices," remarked IFAC President Asmaa Resmouki. "His commitment to the profession and his transformative initiatives, including the creation of the CGMA designation and his work in integrated reporting and advancing management accounting, underline his deservingness of this recognition."

On receiving this award, Mr. Tilley remarked “I am delighted and honoured to receive this prestigious award. Over a fifty-year accountancy career including partnership at KPMG and investment banking CFO roles, the profession has looked after me well and I am pleased to have contributed to its development. It has a critical role and needs to remain dynamic and responsive to the ever-changing needs of business and society.”

Instituted in 2017 by the IFAC Board, the IFAC Global Leadership Award in Honor of Robert Sempier celebrates individuals for their unparalleled contributions to the worldwide accountancy profession. The tribute salutes the legacy of Robert Sempier, IFAC’s inaugural executive director, who significantly shaped the profession's global landscape.

The honor was conferred during IFAC’s Council meeting held on November 15, 2023.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants (IFAC) announced its newest Board member and several reappointments to the Board this week. With these changes, IFAC will maintain a female-majority Board for the fifth consecutive year.

The new and reappointed IFAC Board members and their nominating member organizations are:

New IFAC Board appointments:

• Khalilullah Shaikh (The Institute of Chartered Accountant of Pakistan, Pakistan)

IFAC Board Reappointments:

• Atul Gupta (The Institute of Chartered Accountants of India, India)
• Kohei Kan (The Japanese Institute of Certified Public Accountants, Japan)
• Chiara Mio (The Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili, Italy)
• Taryn Rulton (Chartered Accountants Australia & New Zealand, Australia)

New IFAC Member Organizations Admitted

In addition to the election of new Board members, the IFAC Council also approved new member and associate member organizations.

New IFAC Members:

• Ordem dos Contabilistas e Auditores de Moçambique (OCAM) – Mozambique
• Palestinian Association of Certified Public Accountants (PACPA) – Palestine

New Associates:

• Namibia Institute for Professional Accountants (NIPA) – Namibia

The new appointments, reappointments, and membership decisions were approved at IFAC’s 2023 Council meeting, held in Vienna on November 15-16.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants (IFAC) released a Small Business Sustainability Checklist (the Checklist) today to help small- and medium-sized enterprises (SMEs) maximize the benefits of incorporating sustainability into their strategy and business operations.

The Checklist is a diagnostic tool designed to be tailored by each business according to its own unique circumstances, including its industry sector, lifecycle, and products and services provided. It lists a comprehensive range of initiatives and actions to be considered in terms of environmental, social, and governance (ESG) factors. Not all actions in the Checklist will be relevant to every SME, but the Checklist aims to help all organizations to take small steps on what could be a long but highly fulfilling journey.

As outlined in previous IFAC thought leadership, including Sustainability Information for Small Businesses: The Opportunity for Practitioners, small and medium-sized practices (SMPs) are ideally placed to help SMEs on this journey because of their deep business knowledge and expertise. As trusted advisers, they can recognize the risks and opportunities and advise SMEs on how best to act on them.

Monica Foerster, IFAC SMP Advisory Group Chair, said: “SMEs are critical to the global economy through their vital contributions to GDP and employment levels. Thus, they need to be an active part of the conversation on sustainability issues. Moreover, the expectations for SMEs to report on sustainability information, often due to requests from supply chain partners or finance providers, are likely to grow, resulting in new challenges to these businesses. SMPs are ideally placed to help SMEs tackle sustainability-related risks and to help unlock opportunities, enhance resilience, and illuminate the path to becoming future fit.”

The Checklist was developed under the umbrella of IFAC’s work on Practice Transformation, which highlights the need for SMPs to adapt to remain relevant and serve a rapidly changing world. SMPs are also strongly encouraged to use the Checklist to begin their own journey and consider their strategy, policies, and procedures on sustainability. This is also critical to both attracting and retaining the next generation of talent.

The Small Business Sustainability Checklist has been launched together with an expanded range of external resources to help practitioners upskill and build knowledge in this emerging area. IFAC has prepared a dedicated web page that provides material on sustainability reporting, advisory, assurance, and education and training. Professional Accountancy Organizations are encouraged to share the Checklist with their members and highlight the range of additional resources available.

IFAC acknowledges and appreciates feedback from IFAC’s Small and Medium Practices Advisory Group and the Forum of Firms representatives in the development of the Checklist.

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 180 members and associates in more than 135 jurisdictions, representing millions of professional accountants in public practice, education, government service, industry, and commerce.