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    Oct 22, 2010

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    SMP Committee

     

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    SMP eNews

    In This Issue:

    SMP Committee News
    1) SMP Committee Releases New and Updated Resources for SMPs
       A. Updated ISA Guide Issued (October 2010)
       B. Second Edition of Quality Control Guide Released (July 2010)
       C. Practice Management Guide Issued (June 2010)
    2) Approved Strategy Focuses on Enhanced Support for Small and Medium Practices
    3) SMP Committee Provides Input into Strategy of International Standard Setter
    4) Follow Us on Twitter!
    5) Next SMP Committee Meeting and Forum

    Other News from IFAC
    6) IFACnet Gets a Makeover
    7) IAASB Approves for Exposure Proposed International Standard on Related Services
    8) SME Financial Reporting: Nominees to SME Implementation Group and Update on US GAAP
    9) Forum of Firms Issues Paper on Client Acceptance and Continuance
    10) A4S and GRI Announce Formation of the IIRC
    11) Call for Nominations Coming Soon
    12) Join Us at the IFAC Booth at the World Congress of Accountants

    Other SMP News from Around the World
    13) European Commission Issues Green Paper on Auditing
    14) CECCAR 2010 Congress
    15) Share SMP eNews with Your Colleagues

    SMP Committee News

    1) SMP Committee Releases New and Updated Resources for SMPs

    The following resources can be downloaded free of charge for personal use in PDF format from the Publications & Resources section of the IFAC website.

    A. Updated ISA Guide Issued (October 2010)

    The SMP Committee has issued the second edition of its Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (ISA Guide). The implementation guide is intended to help practitioners understand and efficiently apply the Clarified International Standards on Auditing (ISAs). The second edition includes various improvements based on feedback from users of the first edition, which was issued in 2007.  The updated guide features increased focus on SME audits, a new colorful design, and two integrated case studies, one of which focuses on an audit of a micro-entity.

    The ISA Guide now comes in two stand-alone volumes: Volume 1 describes the basic concepts of a risk-based audit in conformance with the Clarified ISAs; Volume 2 provides practical guidance for the audit of SMEs. The press release is here. Other materials to help with ISA implementation can be found in the IAASB Clarity Center and SMP Committee Relevant Links page.  

    B. Second Edition of Quality Control Guide Released (July 2010)

    The SMP Committee issued the second edition of its Guide to Quality Control for Small- and Medium-Sized Practices (QC Guide) The implementation guide is intended to help SMPs understand and efficiently apply the redrafted International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements. The new edition conforms to the revised and redrafted Code of Ethics for Professional Accountants and includes various improvements based on feedback from users of the first edition. It features an integrated case study, some checklists and forms, and two sample quality control manuals.

    The press release can be found here. In addition, CGA-Canada has developed a French translation of the QC Guide, which will be available soon in the Translations Database.

    C. Practice Management Guide Issued (June 2010)

    Released in June 2010, the Guide to Practice Management for Small- and Medium-sized Practices discusses strategies for SMPs to better manage their practices and ultimately operate in a safe, profitable, and professional manner. It is comprised of eight stand-alone modules that contain practice management principles and best practices on a comprehensive range of topics, from starting the business to succession planning. It also features case studies, an office manual, checklists and forms, and a list of further reading. The press release can be found here. Additional practice management resources are available from the Relevant Links page, which features free resources and tools from IFAC member bodies and other organizations, and IFAC's SMP/SME Discussion Board, where readers may submit their views on practice management and other issues.

    2) Approved Strategy Focuses on Enhanced Support for Small and Medium Practices

    At its September meeting, the IFAC SMP Committee approved its Strategy and Work Plan for 2011-14. Effective January 1, 2011, the plan defines new objectives for providing input to regulatory and policy-making bodies and communicating the value of SMPs to help position SMPs as business advisors. Reflecting the SMP Committee's commitment to collaborate with member bodies, the work plan includes initiatives to facilitate sharing and collaboration among IFAC member bodies, and between IFAC and its members, on products and services aimed at supporting SMPs. The strategy document will be posted to the SMP Committee website in the next few months.

    3) SMP Committee Provides Input into Strategy of International Standard Setter

    As a first step in the 18-month development of its Strategy and Work Plan for 2012-2014, the International Auditing and Assurance Standards Board (IAASB) issued an online questionnaire in April. The SMP Committee submitted responses to the questionnaire, the results of which will be used to develop a formal Consultation Paper, outlining the IAASB's strategic focus and potential projects, to be issued in December 2010. The SMP Committee plans to respond to this paper and calls on member bodies, SMPs, SMEs, and others to do the same. At its September meeting, the IAASB discussed a first draft of the Consultation Paper on its Strategy and Work Plan.

    Representing the SMP and SME perspective, the SMP Committee also provided input on the majority of the other projects on the IAASB's September meeting agenda.

    4) Follow Us on Twitter!
    The SMP Committee is piloting Twitter as a vehicle for communicating and engaging with SMPs, member bodies, and others. The SMP Committee Twitter will keep users up to date with global developments in the SMP/SME sector. Please visit http://twitter.com/IFAC_SMP and start following us.

    5) Next SMP Committee Meeting and Forum

    The next meeting of the SMP Committee will be on March 22-23, 2011, in Istanbul, Turkey. The SMP Committee will hold its IFAC SMP Forum, directed primarily at representatives of member bodies, on March 21. Speeches and presentations from past forums can be seen at http://www.ifac.org/SMP/index.php#Resources (under Conferences).

    Other News from IFAC

    6) IFACnet Gets a Makeover

    IFAC is continuing to expand and improve its KnowledgeNet for Professional Accountants (IFACnet), the global search engine for the accountancy profession. As part of our ongoing commitment to our members, IFAC will roll out an updated IFACnet in late October. The new IFACnet is fresher, more intuitive, easier to navigate, and better than ever before. For more information, please contact Diane Bruno at DianeBruno@ifac.org.

    7) IAASB Approves for Exposure Proposed International Standard on Related Services

    At its September meeting in Malta, the IAASB approved for exposure proposed International Standard on Related Services (ISRS) 4410 (Revised), Compilation Engagements. The Exposure Draft is slated for release in late October. SMPs and SMEs are encouraged to respond using IFAC's electronic comment submission system at www.ifac.org/Guidance/EXD-Outstanding.php

    8 SME Financial Reporting: Nominees to SME Implementation Group and Update on US GAAP

    Two of IFAC's nominees--Robin Jarvis and Ricardo Rodil--were recently appointed to the newly created SME Implementation Group (SMEIG). The SMEIG's mission is to support the adoption and implementation of the International Financial Reporting Standard for Small- and Medium-sized Entities (IFRS for SMEs) around the world. As such, it will develop non-mandatory guidance for implementing the IFRS for SMEs in the form of questions and answers and make recommendations to the International Accounting Standards Board, if and when needed, regarding amendments to the standard. 

    The IFRS Foundation, which appointed the members of the SMEIG, is developing resources to aid adoption and implementation of the IFRS for SMEs, include presentations from training workshops, monthly news updates, and 35 free stand-alone training modules--one for each section of the standard.

    Meanwhile, in the US, the majority of the members of a blue-ribbon panel support making a recommendation to the Financial Accounting Foundation to accept a new model of GAAP that would provide exceptions for private companies; these standards would be set, not by the Financial Accounting Standards Board, but by a separate board made up of people with private-company experience. Read the AICPA news release for more information.

    9) Forum of Firms Issues Paper on Client Acceptance and Continuance

    The Transnational Auditors Committee (TAC), the Executive Committee of the Forum of Firms, recently issued Client Acceptance and Continuance, which summarizes current practices in several of the large networks of international accounting firms and examines how asking the right questions can help ensure that only those entities that meet the same standards of quality as the audit firm be accepted or continued. The paper, which the Transnational Auditors Committee believes will be useful to firms of all sizes, focuses on how the large networks of international accounting firms have implemented the requirements of International Standard on Quality Control (ISQC) 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance, and Related Services Engagements in their client acceptance and continuance policies and procedures. 

     10) A4S and GRI Announce Formation of the IIRC

    The Prince's Accounting for Sustainability (A4S) Project and the Global Reporting Initiative (GRI) announced the formation of the International Integrated Reporting Committee (IIRC). The IIRC brings together a cross section of representatives from the corporate, accounting, securities, regulatory, NGO, and standard-setting sectors. Ian Ball, CEO of IFAC, will serve as co-chairman of the Working Group. The objective of the IIRC is to create a globally accepted framework for accounting for sustainability that brings together financial, environmental, social and governance information in a clear, concise, consistent, and comparable format. For further information regarding the IIRC, please see www.integratedreporting.org.

    11) Call for Nominations Coming Soon

    The IFAC Nominating Committee is starting the nominations process for 2012 and plans to issue a Notice of the Call for Nominations in November. For more information on how to submit your nominations for candidates who work in SMPs or serve the SME sector, and other nominees to serve on IFAC boards and committees, see www.ifac.org/NominatingCommittee/.

    12) Join Us at the IFAC Booth at the World Congress of Accountants

    The 18th World Congress of Accountants, hosted by the Malaysian Institute of Accountants and IFAC, will be held November 8-11, 2010, and will feature the theme Accountants: Sustaining Value Creation. The Congress will offer more than 30 panel discussions, including a number relevant to SMEs and SMPs, and speakers from the World Bank, Transparency International, the Financial Stability Board, the European Commission, the International Forum of Independent Audit Regulators, and the International Accounting Standards Board, among others. Thousands of delegates representing the profession from around the world will attend. Click here to register now: http://www.mia.org.my/wcoa/registration.html.

     Other SMP News from Around the World

    13) European Commission Issues Green Paper on Auditing

    The European Commission (EC) has issued a Green Paper on auditing that focuses on a number of issues, including the role of auditors, public oversight, concentration in the audit market, SME audits, international collaboration, and auditor independence. The deadline for comment submissions is December 8, 2010, and many IFAC member bodies, especially those in the EU, are expected to comment. The EU Commission has scheduled a hearing in early February 2011, to present and discuss the results of the consultation procedure. It is expected that proposals in certain areas may be made as early as 2011.  

    14) CECCAR 2010 Congress

    On September 3-4, 2010 the IFAC member body, Corpul Expertilor Contabili si Contabililor Autorizati din Romania (CECCAR)/The Body of Expert and Licensed Accountants of Romania, hosted an international conference. IFAC President Robert Bunting was one of the keynote speakers. SMP Committee Chair Sylvie Voghel introduced an IFAC SME Regulation and Policy Roundtable. 

    15) Share SMP eNews with Your Colleagues

    The SMP Committee issues regular eNews updates to keep you current on its activities and recent publications. Please forward this eNews to any interested colleagues and let them know that they can subscribe to this and other eNews bulletins at the eNews sign-up page at www.ifac.org/e-news

    For more information about any of the items mentioned above or other information about the SMP Committee, please contact communications@ifac.org.

    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 159 members and associates in 124 countries and jurisdictions, representing approximately 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.
     

     

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