IFAC applauds the provocative, innovative approach taken in this forward-looking consultation and the AICPA’s broader, holistic efforts toward addressing audit quality. Many of the challenges auditors are facing stem from or are exacerbated by the environment of constant change, technology and related complexities so it is only fitting that the profession should adopt available technologies holistically toward the critical objective of audit quality.

The International Federation of Accountants^® (IFAC^®) today published in the Spanish language two additional publications of the International Auditing and Assurance Standards Board^® (IAASB^®), translated as a result of the IberAm Project:

• Staff Questions & Answers (Q&A): Professional Skepticism in an Audit of Financial Statements—translated by Instituto de Censores Jurados de Cuentas de España (ICJCE)
• International Standards on Auditing^™ (ISA^™) Module PowerPoint presentations (12 sets of slides)—translated by Asociacion Interamericana de Contabilidad (AIC)

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

The ISA Module PowerPoint presentations are designed to promote awareness and understanding of the ISAs. They explain the key principles of, and major changes in, individual ISAs, including the implications for audits of small- and medium-sized entities (SMEs) and would typically be useful in connection with ISA implementation or training activities. The changes to individual ISAs are a result of the IAASB’s Clarity Project, designed to enhance the overall readability and understandability of the standards.

In addition, IFAC is pleased to announce the unanimous recent decision of the IberAm Executive Committee to publish all of its official Spanish-language translations, including the handbooks of the independent standard-setting boards, on the IFAC website in the same manner as the original English-language publications. This development will greatly increase accessibility of the authorized Spanish-language translations of the international standards and other publications.

“This is a very welcome development for IFAC’s adoption and implementation objectives in Spanish-speaking countries,” said Fayez Choudhury, IFAC’s Chief Executive Officer.  “The IberAm Project has, in a relatively short time, produced great results—this has required a shared vision, a commitment to serving the public interest, and substantial resources for the benefit of the Spanish-speaking profession as a whole. We are very grateful to our member bodies—ICJCE, Federación Argentina de Consejos Profesionales de Ciencias Económicas, and Instituto Mexicano de Contadores Públicos—and to AIC, IFAC’s regional organization for Latin America and the Caribbean, for the leadership they have shown and for their ongoing valuable contributions to this important work.”

Additional Spanish translations of IFAC publications will be forthcoming. 

About the IAASB^®
The International Auditing and Assurance Standards Board (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 over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.8 million accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants^® (IFAC^®) today published in the Spanish language a Discussion Paper developed by IFAC’s Professional Accountants in Business (PAIB) Committee, The Role and Expectations of a CFO: A Global Debate on Preparing Accountants for Finance Leadership.

This Discussion Paper was released to stimulate a global debate on preparing accountants for finance leadership. It features five principles that highlight the changing expectations, scope, and mandate of the chief financial officer (CFO) and finance leadership roles, and recommends actions professional accountancy organizations and employers can take to prepare professional accountants for career progression to finance leadership. These principles and recommended actions raise awareness of the implications for the education, training, and development of professional accountants.

The Discussion Paper is also important to the regulatory community, which strives for well-governed and managed organizations. The CFO is a critical part of a chain of actors—including the governing body, chief executive officer, audit committee, and auditor—that share responsibility for ensuring sustainable value creation, as well as relevant organizational reporting. The advantages that professional accountants’ training, expertise, and experience bring to the CFO role are not always recognized, especially professional accountants’ combination of ethical and technical mindsets with business acumen and organizational awareness.

“In these tough economic times, the ethical leadership and professional skillset of accountants in business, including financial and business acumen, are critically important to those performing in senior management finance leadership positions in organizations in every economic sector,” said Charles Tilley, Chair of the IFAC Professional Accountants in Business (PAIB) Committee. “But professional accountants in finance and accounting leadership roles aren’t universal and, in some parts of the world, their numbers are declining. So it is more important than ever for the profession to continue to develop outstanding professionals who are well equipped to work in business and government, and to take on evolving and increasingly more complex finance and accounting leadership roles.”

This Spanish translation was performed by the Federación Argentina de Consejos Profesionales de Ciencias Económicas and is a result of the Ibero-American cooperation framework, known as the IberAm project. Established in 2012, the IberAm project—which includes IFAC and its member bodies in Argentina, Mexico, and Spain—is an IFAC-authorized translation and review process that strives to achieve longer-term, sustainable processes for single, high-quality Spanish translations of international standards and other IFAC publications. The Interamerican Accounting Association, IFAC’s regional organization for Latin America and the Caribbean, is an observer to the project. In addition, the project involves a Review Committee of technical experts representing IFAC member bodies in nine Spanish-speaking countries.

About the PAIB Committee
The PAIB Committee serves IFAC member bodies and professional accountants worldwide who work in commerce, industry, financial services, education, and the public and the not-for-profit sectors. Its aim is to promote and contribute to the value of professional accountants in business by increasing awareness of the important roles professional accountants play, supporting member bodies in enhancing the competence of their members, and facilitating the communication and sharing of good practices and ideas.

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

A new Global Regulation survey has been launched by IFAC to assess the impact of regulation on organizations and individuals. The anonymous, 4 minute survey will help IFAC better understand how regulation impacts you and your organization, and how regulation might improve. By participating you’ll give IFAC, regulators, and policy makers invaluable insights. Take the survey today and make sure your voice is heard.

Esta Estrategia propuesta para el programa de Cumplimiento de los Organismos Miembro de IFAC, 2016-2018 forma parte de los esfuerzos continuos de la IFAC para promover la adopción y el apoyo en la implementación de los estándares internacionales de contabilidad , auditoría , ética y educación y el establecimiento de sistemas de revisión de control de calidad y mecanismos de investigación y disciplina . La estrategia propuesta incorpora mejoras fundamentales para la supervisión y mecanismos de reporte .

The International Federation of Accountants^® (IFAC^®), the global organization for the accountancy profession, today revised upward by 16% the membership of its member bodies following analysis of membership data from 2009 to 2013. Conducted by the independent Centre for Economics and Business Research, the analysis shows that membership of IFAC’s more than 175 members and associates in 130 countries and jurisdictions now totals 2.84 million accountants in public practice, education, government service, industry, and commerce.

This growth is a combination of new accountants joining existing IFAC member organizations and new professional accountancy organizations (PAOs) joining IFAC. Over the four-year period:

• 69% of total growth was from IFAC member organizations expanding their ranks through organic growth; and
• 31% was through additional PAOs joining IFAC.

Fayez Choudhury, IFAC CEO, said, “IFAC is honored to represent 2.84 million accountants globally. They are men and women operating throughout society to strengthen organizations and economies, bound by a code of ethics that obliges them to act in the public interest. I am especially pleased that IFAC’s representation is being driven by organic membership growth within our member bodies, as well as PAOs successfully completing the rigorous journey to IFAC membership.” 

In terms of organic growth, IFAC member organizations in advanced economies gained the most new members from 2009 to 2013. Regionally, membership of European IFAC member organizations grew the most—from 834,000 to 981,000 over the four-year period.

Since 2009, IFAC has added 21 new members and associates in almost every region of the globe. IFAC saw particularly strong growth in 2012 as a number of large PAOs became member organizations.

The study was conducted by the Centre for Economics and Business Research (Cebr), an independent economics and business research consultancy, using data supplied by IFAC member organizations. The complete report—which includes findings on the state of the global accountancy profession and the profession’s impact on the global economy—will be issued later this year.

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

In a speech following the G-7 Finance Ministers meeting in Dresden, US Treasury Secretary Jack Lew urged institutions—such as the International Monetary Fund, European Commission, and European Central Bank—to act, saying “there need to be some policy decisions implemented in Greece.”

The International Federation of Accountants^® (IFAC^®) agrees, but also recommends that strong—albeit sometimes difficult—policy decisions about public sector finances need to be made by international organizations and governments across the globe, and it calls on the G-7 to address these issues at its upcoming meeting. IFAC also welcomes the announcement by Greece’s Deputy Finance Minister, Dimitris Mardas, that the Greek finance ministry is moving to adopt International Public Sector Accounting Standards™ (IPSASs™). This is a small but very important step forward on the journey to full transparency and accountability.

Over recent years many countries have faced fiscal, debt, and other financial management issues, while public servants and politicians have engaged in a highly politicized war of words. However, little has been achieved to fix the fundamental problem: poor public sector financial management, transparency, and accountability.

“Improving public sector financial management and providing for better decision making requires politicians to look beyond their next term in office, and to act in the public’s—and the next generation’s—interests,” said IFAC Chief Executive Officer Fayezul Choudhury. “It is critical that policy leaders in governments and international organizations recognize the importance of enhancing public sector finances, reporting, transparency, and accountability. Without demanding the improvements that are necessary, these bodies are destined to be confronting—and debating—the same issues again in the near future.”

IFAC promotes the adoption of high-quality accrual-based financial reporting by governments around the world; IPSASs are the only internationally-accepted standards for such reporting. This reporting provides the foundation for enhanced public sector financial management along with implementation of institutional reforms to support transparency and accountability, including:

• high-quality, timely, independently audited accrual-based financial reporting for the public sector;
• publishing fully transparent reports on a government’s position, performance, budgets, and appropriations to allow for proper scrutiny—particularly ahead of elections; and
• well-defined, publicly available principles for fiscal management and control, with full transparency to demonstrate that principles are being followed.

The International Federation of Accountants^® (IFAC^®) today published in the Spanish language the following guidance for professional accountancy organizations (PAOs):

• Mentoring Guidelines for Professional Accountancy Organizations
• Mentoring: The Path to Sustainable Development; and
• Establishing Governance: A Guide for Professional Accountancy Organizations.

These Spanish translations were performed by the Federación Argentina de Consejos Profesionales de Ciencias Económicas and are a result of the Ibero-American cooperation framework, known as the IberAm project. Established in 2012, the IberAm project—which includes IFAC and its member bodies in Argentina, Mexico, and Spain—is an IFAC-authorized translation and review process that strives to achieve longer-term, sustainable processes for single, high-quality Spanish translations of international standards and other IFAC publications. The Interamerican Accounting Association, IFAC’s regional organization for Latin America and the Caribbean, is an observer to the project. In addition, the project involves a Review Committee of technical experts representing IFAC member bodies in nine Spanish-speaking countries.

"Experience has shown that collaborative relationships between PAOs can be one of the most effective and sustainable approaches to building the capacity of the accountancy profession, particularly in emerging economies," said Alta Prinsloo, IFAC Executive Director, Strategy, and Chief Operating Officer. "In addition, establishing and maintaining a sound system of governance enables a PAO to maintain credibility and deliver on its value proposition to its members and to the public. We hope that these Spanish translations will encourage and support a wider range of PAOs to further contribute to the development of the profession in their own jurisdictions and beyond."

Recognizing the ever-increasing number of knowledge-sharing partnerships between PAOs, and their potential value as capacity-building facilitators, Mentoring: The Path to Sustainable Development highlights mentoring’s benefits—to the mentor, the mentee, and to the profession.

The Mentoring Guidelines offer practical guidance on how PAOs can enter into, and sustain an effective mentoring relationship that will achieve mutually agreed outcomes. It covers considerations before setting up a relationship, how to involve other stakeholders, such as government and aid agencies, and managing possible risks. The guidelines also include a sample Memorandum of Understanding.

Establishing Governance explores the key elements of a PAO’s governance structure and operations, with a focus on how a PAO can best adhere to good practice principles in delivering on its mission and/or vision. It includes case study examples from Kosovo, Mongolia, and Rwanda as illustrations of varying approaches around the world.

Additional Spanish translations of IFAC publications will be forthcoming.

For an overview of translations of IFAC’s publications, please visit the IFAC Translations Database.

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 over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

Since the crisis, financial regulations the world over are being revised to ensure banks are more transparent and better able to deal with financial shocks. However there has been no corresponding drive to better manage government balance sheets for the long term, not least because very few governments would be able report on anything other than a cash basis. This demonstrates how urgently the quality of financial management in governments around the world needs sustained and well-designed reform, including those governments who have moved to adopt the accrual basis of reporting.

To address these issues, the Chartered Institute of Public Finance and Accountancy (CIPFA) is hosting its first ever International Seminar to highlight the importance of sound public financial management and reporting in a robust, transparent government accounting practice, in the public interest, and consider how the accountancy profession can play a role in addressing the quality of public sector financial management.

The seminar on July 7 in London will include global experts, highlighting relevant examples and initiatives that promote effective and efficient management of public finances, including:

• Fayezul Choudhury, IFAC CEO
• Paul Kazarian, Founder, Chairman and CEO, Japonica Partners
• Alta Prinsloo, Executive Director, Strategy, and Chief Operating Officer, IFAC
• Olivier Boutellis-Taft, Chief Executive, Federation of European Accountants
• Ian Ball, Chair, CIPFA International
• Mark Lowcock, Permanent Secretary, UK Department for International Development
• Fred Moore, Chief Executive Officer, Institute of Chartered Accountants of Ghana
• Chidi Ajaegbu, Past-President, Institute of Chartered Accountants of Nigeria

Additional information, including registration details, is available on the CIPFA website.

See IFAC CEO Fayez Choudhury discuss the Accountability. Now. campaign which represents a coalition of organizations that believe in the importance of enhancing the accountability and transparency of government financial management around the world.