The seven Statements of Membership Obligations (SMOs) are the foundation of the IFAC Member Compliance Program.
They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by supporting the adoption and implementation of international standards for the accountancy profession and establishing quality assurance and investigation and discipline systems. The SMOs are recognized as the international benchmarks for professional accountancy organizations; in particular, the World Bank Reports on Observance of Standards and Codes (ROSCs) for Accounting & Auditing refer to the IFAC SMOs as part of their policy recommendations to governments and professional accountancy organizations.
The SMOs cover many international standards and best practices:
- SMO 1: Quality Assurance
- SMO 2: International Education Standards™ for Professional Accountants and Other Pronouncements Issued by the International Accounting Education Standards Board™ (IAESB™)
- SMO 3: International Standards and Other Pronouncements Issued by the International Audit and Assurance Standards Board® (IAASB®)
- SMO 4: International Ethics Standards Board for Accountants® (IESBA®) Code of Ethics for Professional Accountants™
- SMO 5: International Public Sector Accounting Standards™ and Other Pronouncements Issued by the International Public Sector Accounting Standards Board® (IPSASB®)
- SMO 6: Investigation and Discipline
- SMO 7: International Financial Reporting Standards and Other Pronouncements Issued by the International Accounting Standards Board (IASB)
The SMOs were ratified by the IFAC Council in 2004 as part of the 2003 IFAC Reforms and updated by a vote of the IFAC Council in 2012. Adherence is mandatory for all IFAC Members and Associates.
Statements of Membership Obligations (SMOs) 1-7 (Revised)
The Statements of Membership Obligations (SMOs) were revised in 2012, after a comprehensive two-year exercise that gave all stakeholders a voice and followed strict due process. The result is a clarified set of SMOs—seven globally recognized benchmarks that provide a framework for strong, credible, and high-quality professional accountancy organizations (PAOs). The revised SMOs, which are the basis of the IFAC Member Compliance Program, assist PAOs to lead the way in serving the public interest by supporting adoption and implementation of international standards.
A Comparison Guide to the 2012 SMO Revisions is available to assist member organizations and their technical staff in understanding the revisions and addressing the revised SMOs.