Global Accountancy Leaders Address Credit Crisis and Focus on Needs of Small Business

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    Dec 08, 2008
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    Global Accountancy Leaders Address Credit Crisis and Focus on Needs of Small Business

    To mark the beginning of World Accountancy Week, the International Federation of Accountants (IFAC) has released the results of its 2008 Global Leadership Survey. This year's survey sought the views of leaders of accountancy institutes worldwide on the current credit crisis and other top issues for the profession. Chief executives and presidents of 110 accountancy organizations* worldwide responded to the survey. The majority of these organizations have been actively engaged, like IFAC, in identifying and executing appropriate responses to the crisis, supporting their members in understanding applicable international standards, and working with regulators, business groups and others to find solutions. Many of these initiatives are featured on IFAC's website in its new page on the global financial crisis (http://www.ifac.org/financial-crisis/).

    "According to survey respondents, the credit crisis is resulting in increased awareness of the value of professional accountants and the services they provide," says IFAC Chief Executive Ian Ball. "It is now up to the profession to continue to meet the expectations of those that depend on our work and to contribute to rebuilding confidence in financial markets."

    Leaders of accountancy organizations reported an increased trend in the need for services that are related in some way to the crisis. For example, in the coming year they expect their members in public practice to be more involved in corporate recovery and insolvency services, assurance services (other than audit), as well as risk and compliance related work. Members employed in business and industry are also expected to be more involved in risk management, as well as in the areas of corporate social responsibility and sustainability, internal control, and governance and compliance work.

    Respondents believe that the most important issues for the accountancy profession in the coming year are:

    • Addressing the needs of small and medium enterprises (SMEs) and small and medium practices (SMPs);
    • Meeting expectations to identify and prevent fraud;
    • Dealing with the changing regulatory landscape; and
    • Transitioning to International Standards on Auditing.

    They also believe it is increasingly important to address the transition to International Financial Reporting Standards, auditor liability issues, the use of new technologies like XBRL, and corporate social responsibility issues.

    Recently-appointed IFAC President Robert Bunting has indicated that addressing the needs of SMPs and SMEs will be a priority for IFAC over the next two years.

    "The survey confirms that meeting the needs of SMPs and SMEs is a global concern and a global goal. These entities are among those likely to suffer significantly from the current financial crisis yet they are among the least at fault. We must look for ways to mitigate the effect of the crisis on SMPs and SMEs," emphasizes Mr. Bunting.

    Other survey results point to an increase in the attractiveness of the profession to students. According to survey respondents, the factors positively influencing students are the career options available and earning potential. However, leaders of accountancy institutes indicated that the two factors having the most negative impact on the attractiveness of the profession are work/life balance and legal liability. Most respondents indicated that they have initiatives in place to address these issues.

    During World Accountancy Week, December 7, 2008 to December 13, 2008, accountancy institutes will be communicating the benefits of pursuing a career in accountancy and the role of professional accountants in contributing to economic growth and development.

    IFAC is the worldwide 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 currently comprised of 158 professional accountancy bodies in 122 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards of ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.


    * Note to Editors - List of IFAC 2008 Global Leadership Survey Participants

    Accountancy Institutes

    Country:Name of Organization:
    AlbaniaInstitute of Authorized Chartered Auditors of Albania
    ArgentinaFederación Argentina de Consejos Profesionales de Ciencias Económicas
    ArmeniaAssociation of Accountants and Auditors of Armenia
    AustraliaCPA Australia
    AustraliaNational Institute of Accountants in Australia
    AustraliaThe Institute of Chartered Accountants in Australia
    BangladeshThe Institute of Cost and Management Accountants of Bangladesh
    BelgiumInstitut des Experts-comptables et des Conseils fiscaux
    BelgiumInstitut des Réviseurs d'Entreprises
    BoliviaColegio de Auditores de Bolivia
    BotswanaBotswana Institute of Accountants
    BrazilInstituto dos Auditores Independentes do Brasil
    BrazilConselho Federal de Contabilidade
    BulgariaInstitute of Certified Public Accountants of Bulgaria
    CameroonOrdre National des Experts Comptables du Cameroun
    CanadaThe Canadian Institute of Chartered Accountants
    CanadaCertified General Accountants' Association of Canada
    Cayman IslandsCayman Islands Society of Professional Accountants
    ChinaChinese Institute of Certified Public Accountants
    ColombiaInstituto Nacional de Contadores Públicos de Colombia
    Costa RicaColegio de Contadores Públicos de Costa Rica
    CyprusThe Institute of Certified Public Accountants of Cyprus
    Czech RepublicChamber of Auditors of the Czech Republic
    EstoniaAudiitorkogu (Estonian Auditing Board)
    FijiFiji Institute of Accountants
    FinlandHTM-tilintarkastajat ry - GRM- revisorer rf
    FranceConseil Supérieur de l'Ordre des Experts-Comptables
    FranceCompagnie Nationale des Commissaires aux Comptes
    GeorgiaGeorgian Federation of Professional Accountants and Auditors
    GermanyInstitut der Wirtschaftsprüfer in Deutschland e.V.
    GhanaInstitute of Chartered Accountants - Ghana
    HaitiOrdre des Comptables Professionels Agrees d'Haiti
    Hong Kong Special Administrative Region of People's Republic of ChinaHong Kong Institute of Certified Public Accountants
    IndiaThe Institute of Cost and Works Accountants of India
    IndiaThe Institute of Chartered Accountants of India
    IndonesiaIndonesian Institute of Accountants
    IranIranian Association of Certified Public Accountants
    IraqIraqi Union of Accountants and Auditors
    IrelandThe Institute of Certified Public Accountants in Ireland
    IsraelInstitute of Certified Public Accountants in Israel
    ItalyConsiglio Nazionale dei Dottori Commercialisti e Degli Esperti Contabili
    JapanThe Japanese Institute of Certified Public Accountants
    KazakhstanChamber of Auditors of the Republic of Kazakhstan
    KenyaInstitute of Certified Public Accountants of Kenya
    KoreaKorean Institute of Certified Public Accountants
    KosovoSociety of Certified Accountants and Auditors of Kosovo
    LebanonLebanese Association of Certified Public Accountants
    LesothoLesotho Institute of Accountants
    LithuaniaLithuanian Chamber of Auditors
    MalawiThe Society of Accountants in Malawi
    MalaysiaMalaysian Institute of Accountants
    MalaysiaMalaysian Institute of Certified Public Accountants
    MaltaThe Malta Institute of Accountants
    MexicoInstituto Mexicano de Contadores Públicos, A.C.
    MoldovaAssociation of Professional Accountants & Auditors of the Republic of Moldova
    NamibiaInstitute of Chartered Accountants of Namibia
    NepalThe Institute of Chartered Accountants of Nepal
    New ZealandNew Zealand Institute of Chartered Accountants
    NigeriaThe Institute of Chartered Accountants of Nigeria
    NorwayDen Norske Revisorforening
    PakistanInstitute of Chartered Accountants of Pakistan
    PakistanInstitute of Cost and Management Accountants of Pakistan
    PolandAccountants Association in Poland
    PolandNational Chamber of Statutory Auditors
    RomaniaChamber of Financial Auditors of Romania
    RomaniaCorpul Expertilor Contabili si Contabililor Autorizati din Romania
    RussiaThe Institute of Professional Accountants of Russia
    Saudi ArabiaSaudi Organization for Certified Public Accountants
    SenegalOrdre National des Experts Comptables et Comptables Agréés du Sénégal
    SerbiaSerbian Association of Accountants and Auditors
    SingaporeInstitute of Certified Public Accountants of Singapore
    SloveniaThe Slovenian Institute of Auditors
    South AfricaSouth African Institute of Professional Accountants
    South AfricaThe South African Institute of Chartered Accountants
    SpainInstituto de Censores Jurados de Cuentas de España
    SwazilandSwaziland Institute of Accountants
    SwedenFAR SRS
    SwitzerlandTreuhand-Kammer
    TanzaniaNational Board of Accountants and Auditors - Tanzania
    TunisiaOrdre des Experts Comptables de Tunisie
    TurkeyExpert Accountants' Association of Turkey
    TurkeyUnion of Chambers of Certified Public Accountants of Turkey
    UgandaInstitute of Certified Public Accountants of Uganda
    UkraineUkrainian Federation of Professional Accountants and Auditors
    United KingdomAssociation of Accounting Technicians
    United KingdomInstitute of Chartered Accountants of Scotland
    United KingdomThe Association of Chartered Certified Accountants
    United KingdomThe Chartered Institute of Management Accountants
    United KingdomThe Institute of Chartered Accountants in England & Wales
    United KingdomThe Chartered Institute of Public Finance and Accountancy
    United StatesAmerican Institute of Certified Public Accountants
    United StatesInstitute of Management Accountants
    United StatesNational Association of State Boards of Accountancy
    11 AnonymousResponses from Members and Associates

    Regional Accounting Organizations and Groupings

    Eastern Central and Southern African Federation of Accountants
    Interamerican Accounting Association
    Confederation of Asian and Pacific Accountants
    Eurasian Council of Certified Accountants and Auditors
    The Institute of Chartered Accountants of the Caribbean
    The Association of Accountancy Bodies in West Africa

     

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