The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued new International Good Practice Guidance, Evaluating and Improving Internal Control in Organizations, highlighting areas where the practical application of existing internal control standards and frameworks often fails in many organizations.

“Sound internal control practices that are continuously adapted to changing circumstances are critical for organizations,” said Roger Tabor, chair of the PAIB Committee. “Organizations are most successful when they can take advantage of opportunities and defend against threats, both of which are enabled by an appropriate system of internal control.”

The new guidance will assist professional accountants in business as they work with their organizations to continuously evaluate and improve internal control, and ensure that it is an integrated part of the organization’s systems of governance and risk management. Better integrated internal controls can save the organization time and money while helping to create and preserve value.

“Organizations need to evaluate and review their internal controls at all levels and within all functions to continue to achieve their objectives,” said Henny Kapteijn, chair of the PAIB Committee’s Risk Management and Internal Control Task Force. “A Professional accountant in business, armed with this guidance, can help lead his or her organization through this process to ensure ongoing, effective internal control.”

About International Good Practice Guidance
International Good Practice Guidance (IGPG) issued by the PAIB Committee cover areas of international and strategic importance in which professional accountants in business are likely to engage. In issuing principles-based guidance, IFAC seeks to foster a common and consistent approach to those aspects of the work of professional accountants in business not covered by international standards. IFAC seeks to clearly identify principles that are generally accepted internationally and applicable to organizations of all sizes in commerce, industry, education, and the public and not-for-profit sectors. Previously issued IGPGs are available on the IFAC website, including Preface to IFAC’s International Good Practice Guidance.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The Professional Accountants in Business (PAIB) Committee has issued this new International Good Practice Guidance, which highlights areas where the practical application of existing internal control standards and frameworks often fails in many organizations. The new guidance will assist professional accountants in business as they work with their organizations to continuously evaluate and improve internal control, and ensure that it is an integrated part of the organization’s systems of governance and risk management.

The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued proposed International Good Practice Guidance, Eleven Principles for Effective Business Reporting Processes, for public comment. The aim of this guidance is to establish a benchmark for good practice in implementing effective business reporting processes in an organization. The guidance will help professional accountants in business and their organizations create a cycle of continuous improvement for their business reporting processes to assist stakeholders in making informed decisions about the organization.

“High-quality business reports are crucial for strong capital markets and sustainable economic growth,” said Roger Tabor, chair of the PAIB Committee. “And producing high-quality business reports requires organizations to have effective business reporting processes in place.”

With this guidance, the PAIB Committee aims to provide principles-based guidance that supports professional accountants in business by helping them apply good practices. This guidance is directed at all organizations wishing to enhance their reporting processes—no matter their size or structure, or whether they are private or public.

“This guidance will help professional accountants in business and their organizations ensure that they implement the most effective reporting processes,” said Karyn Brooks, chair of the PAIB Committee’s Business Reporting Task Force. “Implementing these processes will enable them to provide stakeholders—both internal and external—with high-quality financial and non-financial information.”

Professional accountants, their professional organizations, and other interested parties are encouraged to respond to the proposed guidance to help improve its applicability to professional accountants in organizations of all sizes.

How to Comment
The PAIB Committee invites all stakeholders to comment. To access the exposure draft and submit a comment, visit the PAIB Committee section of the IFAC website at www.ifac.org/paib. Comments on the exposure draft are requested by August 23, 2012.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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The PAIB Committee submitted this comment letter to the International Ethics Standards Board for Accountants (IESBA) Exposure Draft on Proposed Changes to the Code of Ethics for Professional Accountants (the Code) Addressing Conflicts of Interest. Recommendations include expansion of some of the definitions and parameters to better cover the work and domain of professional accountants in business.

The PAIB Committee submitted its Comment Letter for the Committee of Sponsoring Organizations of the Treadway Commission (COSO)'s Internal Control - Integrated Framework. The PAIB Committee provides the perspective of professional accountants in business. Among other recommendations, the Committee suggests broadening the scope of the Framework and the definition of internal control as well as including a strategic objective and an objective setting component.

The Professional Accountants in Business Committee was invited to participate in the Institute of Cost Accountants of India's National Cost Convention in New Delhi, India, in March 2012.

This is the executive summary for Investor Demand for Environmental, Social, and Governance Disclosures:Implications for Professional Accountants in Business, which considers trends in investor demand for and use of environmental, social, and governance (ESG) information, and recommends how professional accountants can better support their organizations in responding to these demands, and ultimately improve the management and reporting of ESG performance.

This report from the Professional Accountants in Business Committee considers trends in investor demand for and use of environmental, social, and governance (ESG) information, and recommends how professional accountants can better support their organizations in responding to these demands, and ultimately improve the management and reporting of ESG performance.

An Executive Summary of the report is also available below.

The PAIB Committee submitted its Comment Letter for the International Integrated Reporting Council (IIRC)’s Discussion Paper, Towards Integrated Reporting: Communicating Value in the 21^st Century. The PAIB Comment Letter provides the perspective of a preparer of internal and external business reporting. Among other recommendations, it highlights the need for how-to guidance for preparers to help them develop or redesign their internal processes to ensure readiness, and suggests that materiality needs to be defined in relation to investors and wider stakeholders.

The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has issued proposed International Good Practice Guidance, Evaluating and Improving Internal Control in Organizations for public comment. The aim of this guidance is to establish a benchmark for good practice in maintaining effective internal control in response to risk, and help professional accountants in business and their organizations create a cycle of continuous improvement for their internal control systems.

“Strong internal control is both one of the best defenses against business failure, and an important driver of business performance. It mitigates risk and adds sustainable value,” said Roger Tabor, chair of the PAIB Committee. “We looked at the sort of things that can go wrong with the way organizations apply internal controls, and drew out principles that professional accountants in business can apply to support their organizations in avoiding these problems.”

With this proposed publication, the PAIB Committee aims to provide principles-based guidance that focuses on the role of professional accountants in business and how they can support their organizations in evaluating and improving internal control as an integrated part of the organization’s governance, risk management, and internal control systems.This proposed guidance can be implemented regardless of the existing internal control frameworks or standards used, as it deals with those internal control issues that are often unsuccessful because of poor implementation and design.

Professional accountants, their organizations, and other interested parties are encouraged to respond to the proposed guidance to help improve its applicability to professional accountants in organizations of all sizes.

How to Comment
The PAIB Committee invites all stakeholders to comment. To access the exposure draft and submit a comment, visit the PAIB Committee section of the IFAC website at www.ifac.org/paib. Comments on the exposure draft are requested by February 29, 2012.

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 167 members and associates in 127 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

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