Over 70 partners and senior executives from 24 international networks of accounting firms recently met in London to share their experiences, industry insights, and current practices at a symposium on Going Concern and Related Audit Considerations. Panels of experts were assembled with the support of the four largest networks to lead discussions on various topics, including companies' access to funding, financial statement and audit report implications related to going concern, as well as other related audit considerations, such as valuation and impairment, materiality, and internal control implications.

"This event is the second in a developing initiative by the Forum of Firms to collectively share, examine, and evolve current practice in dealing with the many challenges facing auditors and the profession flowing from the current economic situation. It brings together the Forum membership in a unique manner to hear and openly exchange views, including hearing the latest developments from the International Auditing and Assurance Standards Board (IAASB)," states David Maxwell, Chair of both the symposium and the Forum of Firms.

The symposium commenced with a jurisdictional analysis of accounting and auditing standards, followed by a presentation on IAASB perspectives with particular emphasis on the IAASB's Staff Audit Practice Alert, Audit Considerations in Respect of Going Concern in the Current Economic Environment, issued in January 2009. The symposium then focused on some of the practical auditing considerations being faced by auditors across a broad spectrum of industries. This resulted in discussion from a wide range of perspectives and suggestions of practical guidance to help auditors navigate through today's economic climate. The importance of carefully considering assumptions associated with client business models, getting a more intimate understanding of financing arrangements, as well as transparency in disclosures were key focus areas.

"The symposiums are designed to disseminate good practice in an area of critical importance in today's environment and to support both Forum members and the broader Forum objective of providing the highest quality audit services," points out David Maxwell.

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 Federation of 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.

1) The Financial Crisis and the Opportunities for Change

A. Rahm Emanuel, President Obama's White House Chief of Staff, has stated, "Never let a serious crisis go to waste....it's an opportunity to do things you couldn't do before." It is certainly too great a crisis for IFAC to sit out. There are opportunities that we and other public interest enterprises cannot afford to miss. In IFAC's case:

1. Recognition of the importance of accounting and auditing is at a high point.
2. The interconnectedness of the world's financial markets and economies has been demonstrated in a resounding way.
3. The concern for a "level playing field" in the financial markets has created momentum for convergence of financial standards.

B. The Financial Crisis is a game changer for IFAC, as well as for other international institutions like the World Bank. We must act now and do so decisively to counteract the crisis as much as possible. For IFAC, we are faced with two tranches of economic reform:

• In one tranche are those working to stabilize banks and improve the flow of credit; this is an area in which IFAC's role is that of a minor player;
• In the other tranche are those working on the re-regulation of financial markets; here, IFAC has a major role to play.

The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has published the 2009 Handbook of International Public Sector Accounting Pronouncements. The handbook provides a single source for financial statement preparers to locate all International Public Sector Accounting Standards (IPSASs). These standards are intended to be used to prepare financial statements for national, state, and local governments and their agencies, as well as international public sector bodies, such as the United Nations and the Organisation for Economic Cooperation and Development.
 
"The IPSASB is making significant progress on its ambitious work program to achieve substantial convergence with International Financial Reporting Standards. We plan to achieve this by the end of 2009," states Mike Hathorn, IPSASB Chairman. "It is anticipated, therefore, that while changes to the 2009 handbook are minimal, changes to the 2010 handbook will be significant, with new IPSASs planned on financial instruments, intangible assets, entity combinations, and agriculture," adds Hathorn.

The 2009 IPSASB Handbook contains all pronouncements of the IPSASB as of December 31, 2008, as well as the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants. The Code is applicable to all professional accountants, including those practicing in the public sector. The updated handbook also includes editorial corrections identified since the publication of the 2008 handbook, as well as amendments to the Code of Ethics.

The handbook can be downloaded in PDF format from the IFAC online bookstore (www.ifac.org/store), and print copies can be ordered now for immediate shipment. Print copies of the handbook are free of charge, except for a US$25.00 shipping cost.

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. IFAC is comprised of 157 members and associates in 122 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

The International Federation of Accountants (IFAC) endorses the proposals to enhance global financial regulation and improve the transparency of the international financial system that were issued in the G20 Communiqué on the world economic crisis on April 2 in London.

The G20 objectives are consistent with many of the recommendations that IFAC sent to the G20 Working Groups prior to the London summit, such as the call for implementing the Financial Stability Board's 12 key International Standards and Codes (which include International Standards on Auditing); making significant progress toward a single set of high-quality global accounting standards; making improvements in the international regulatory framework; and strengthening the roles of the International Monetary Fund and the World Bank. (See IFAC's submission at www.ifac.org/financial-crisis).

"We support the G20 in building a reformed international financial system," states Ian Ball, Chief Executive Officer of IFAC. "The accountancy profession will have a vital role to play moving forward, and IFAC will continue to emphasize the measures we suggested in our recommendations to the G20 last week."

Among IFAC's recommendations were the adoption of International Public Sector Accounting Standards (IPSASs) in all jurisdictions and the provision by the G20 of sufficient resources to develop and disseminate implementation guidance for the global standards they support. IFAC also proposed:

• Strengthening of the International Monetary Fund's Code of Good Practices on Fiscal Transparency through the application of IPSASs;
• Support for the establishment of well-governed professional accountancy bodies in countries where they do not currently exist;
• Continued support for the World Bank's Reports on Observance of Standards and Codes (ROSC) initiative;
• The establishment of an international, principles-based threshold of competencies for senior financial officers in public interest entities; and
• That the G20 ensure its actions are supportive of the small business sector.

IFAC is developing a further set of recommendations that builds on the proposals in the G20 Communiqué.

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. IFAC is comprised of 157 members and associates in 122 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. Through its independent standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has published an exposure draft (ED), entitled ED 36, Agriculture. This ED is part of the IPSASB's global convergence program, scheduled for completion by December 31, 2009, that will substantially converge International Public Sector Accounting Standards (IPSASs) with International Financial Reporting Standards (IFRSs) approved at December 31, 2008. It proposes an IPSAS that converges with the International Accounting Standards Board's International Accounting Standard 41, Agriculture, with limited changes to ensure consistency with other IPSASs. These changes include an acknowledgement that, in some jurisdictions, biological assets may be sold or transferred for nominal amounts.

"Converging IPSASs with IFRSs, where appropriate for the public sector, is one of the key objectives of our standards development program," states Mike Hathorn, Chair of the IPSASB. "This exposure draft proposes clear financial reporting requirements for agricultural activity in the public sector in order to ensure that the private and public sectors report similar activities in a consistent fashion."

How to Comment
Comments on ED 36 are requested by June 30, 2009. The ED may be viewed by going to www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org and stepheniefox@ifac.org. They can also be faxed to the attention of the IPSASB Technical Director at +1 (416) 977-8585, or mailed to the IPSASB Technical Director at 277 Wellington Street West, 4th Floor, Toronto, Ontario M5V 3H2, Canada. All comments will be considered a matter of public record and will ultimately be posted on the IFAC website.

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. IFAC is comprised of 157 members and associates in 122 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

The International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants (IFAC) has published a Spanish-language translation of its 2007 Handbook of International Public Sector Accounting Pronouncements. This edition contains translations of 24 accrual basis International Public Sector Accounting Standards (IPSASs) and the comprehensive cash basis IPSAS. This translation revises the translation of the 2005 Handbook of International Public Sector Accounting Pronouncements and will increase the accessibility of the most recent standards. This will further help to enhance the accountability and transparency of governmental financial reporting. Key changes from the previous translation include 3 additional IPSASs and revised versions of 11 other IPSASs.

IPSASs set out the requirements for financial reporting by governments and other public sector entities other than government business enterprises. The accrual IPSASs are based on International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) to the extent that the requirements in those standards are applicable to the public sector.

"Providing an updated Spanish translation is critical to the IPSASB's mission to assist public sector entities throughout the world, and in particular in the key constituency of Latin America," states Mike Hathorn, IPSASB Chairman.

The Spanish translation of the IPSASs was undertaken by the IPSASB in conjunction with the International Accounting Standards Committee Foundation, which also prepares translations of IFRSs for the IASB. This will ensure that the English and Spanish versions of the IPSASs converge with the respective English and Spanish versions of the IFRSs, where appropriate.

It is important to note, however, that the English version of the IPSASs is the official authoritative version of the standards. The 2009 Handbook was recently released in English.

The Spanish handbook is available free of charge in print and electronic versions from the IPSASB section of the IFAC online bookstore (www.ifac.org/store). For printed copies, shipping charges of US$25 per handbook apply. For express courier service, please contact Yansa Morel at +1 (212) 471-8722.

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. IFAC is comprised of 157 members and associates in 122 countries, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international public sector financial reporting standards through the IPSASB, IFAC, through its independent standard-setting boards, sets ethics, auditing and assurance, and education standards. It also issues guidance to encourage high-quality performance by professional accountants in business.

Robert L. Bunting, President of the International Federation of Accountants (IFAC), was recognized for his contributions to accounting ethics, governance, and the public interest by the Loyola Marymount University's (LMU) College of Business Administration in Los Angeles on March 17. In accepting the award from Dr. Lawrence Kalbers of the Center for Accounting Ethics, Governance, and the Public Interest, he offered some views on ways to solve the current worldwide financial crisis and discussed the role that the international accounting community must play in the global recovery.

Featured as a guest of the school's Distinguished Speaker Series, Mr. Bunting told students, faculty, and members of the general public, "It is important for regulators to resist knee-jerk reactions, scapegoats, and silver bullets as they seek to shift the direction of national regulation in the midst of our current financial crisis." He emphasized that "regulation must be pragmatic and cost effective" and its cost must not exceed the benefit to the public. In particular, he cautioned regulators about the unintended burdens that regulations can place on small and medium enterprises, which are vital to global economic growth.

Among the subjects Mr. Bunting covered was "fair-value accounting," which he feels has come under undue criticism for its unreliability in shallow, illiquid markets. He believes that this kind of assessment only deflects attention from the more meaningful aspects of the world's current financial woes.

He also spoke about the disadvantages of a practice under consideration in some quarters: mandatory audit firm rotation. "While firm rotation might seem to remove any bias that may be attached to past decisions, it makes no sense at all," he emphasized adding, "In most parts of the world there are not enough choices to allow for this without forcing companies to choose audit firms that have no expertise in their industry."

He explained that a number of countries have experimented with-and subsequently abandoned-the concept as almost impossible to implement. Yet, it is being considered as a remedy to the Satyam scandal in India. Mr. Bunting pointed out that it would not be a pragmatic solution and would certainly set the country apart from nearly all of its trading partners- and represent a step backwards from the creation of a true global economic community.

"We must resist a retreat back into a national focus, with such manifestations as protectionism, national carve-outs of standards and regulations, and other short-sighted political solutions," Mr. Bunting warned. He suggested strengthening the Financial Stability Forum, which brings together national bodies of sector-specific regulators, central bankers, and industry supervisors, and the International Federation of Independent Audit Regulators, a newer organization, to deal with the consequences of the increasingly integrated global economy.

Mr. Bunting added, "IFAC has experience in understanding how to make an international organization work, and we are ready and willing to help any groups, especially those who do not have experience in the standard-setting arena."

Robert L. Bunting was elected president of IFAC in November 2008 and has been an IFAC Board member since 2005. He is a past Chairman of the American Institute of Certified Public Accountants.

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. IFAC is comprised of 157 members and associates in 122 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international auditing and assurance standards through The International Auditing and Assurance Standards Board (IAASB), IFAC sets ethics, education, and public sector accounting standards through its independent standard-setting boards. It also issues guidance to encourage high-quality performance by professional accountants in business.

Introduction
Good morning. I'd like to thank Dr. Kalbers and the Center for Accounting Ethics, Governance & the Public Interest for inviting me here today. I would also like to thank all of you for taking time from your busy schedules to hear what I have to say about restoring integrity to the global financial system, which, I'm sure you will agree, is in dire straits.

Before we get started, I would like to extend a particular welcome to the students in the audience. While it's true that you're inheriting a world that is in the worst financial shape that it has been in many decades, it's a great time to be entering the accountancy profession.

The importance of accounting and auditing is being reinforced as it never could be in times of plenty. For example, who in the accounting world ever would have thought that we would be asked to explain "fair value" to our non-accounting friends and even strangers who have a sudden interest in a financial reporting concept-let alone that they would be interested in our responses? This is, indeed, a rare time for the accountancy profession.

• You will be entering a truly global profession in terms of rapid convergence to a single set of auditing and financial reporting standards.
• You will be on the ground floor of new systems for regulating the profession and the global financial markets.
• And, you may be participating in a debate about the purpose of financial reporting: Is it for regulators and marketplace stability, or for investors and credit grantors?

Now, I'd like to focus specifically on the economic crisis.

The International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), today issued its 2008 annual report that highlights the culmination of the Clarity Project. With the completion of the Clarity Project, the IAASB has issued all its auditing standards in a form designed to enhance the understanding and implementation of them, as well as to facilitate translation. The annual report also details the IAASB's strategy and future direction as it continues to promote the adoption of International Standards on Auditing (ISAs) and develops new standards in response to extensive public consultation undertaken during 2007 and 2008 with key stakeholders.The International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), today issued its 2008 annual report that highlights the culmination of the Clarity Project. With the completion of the Clarity Project, the IAASB has issued all its auditing standards in a form designed to enhance the understanding and implementation of them, as well as to facilitate translation. The annual report also details the IAASB's strategy and future direction as it continues to promote the adoption of International Standards on Auditing (ISAs) and develops new standards in response to extensive public consultation undertaken during 2007 and 2008 with key stakeholders.

In the report, former Chairman John Kellas describes the significance of the completion of the Clarity Project and outlines the IAASB strategy and work program. Covering the period from 2009-2011, the strategy and work program responds to significant developments in the environment in which audit and other assurance services are performed, and in which standards for such services are set. In addition, a report from David Damant, Chairman of the IAASB Consultative Advisory Group, draws attention to the work of the advisory group in providing advice to the IAASB on its work program, technical projects, and other matters of relevance.

Jim Sylph, Executive Director, Professional Standards, remarked, "Now that the IAASB has completed the Clarity Project, there are a number of initiatives already underway that will grow in importance during 2009, such as the development of an alternative assurance standard for those entities that do not require an audit. In addition, new initiatives that are vital to the successful implementation of the clarified ISAs have been added to the IAASB's agenda, including the development of a process to assess the effectiveness of our standards."

Readers of the IAASB annual report are encouraged to visit the new Clarity Center on the IAASB website for more information on the Clarity Project and the full suite of standards that will come into effect for audits of financial statements for periods beginning on or after December 15, 2009.

About the IAASB and IFAC
The objective of the IAASB, an independent standard-setting board within IFAC, is to serve the public interest by setting high-quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB, and, as one element of that oversight, establishes the criteria for its due process and working procedures.

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. IFAC is comprised of 157 members and associates in 122 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets ethics, education, and public sector accounting standards. It also issues guidance to encourage high-quality performance by professional accountants in business.