The IESBA has been busy this year!  Thanks to all who provided feedback on our Strategy and Work Plan, which we’ll be discussing at our meeting in New York next week, September 17-20, 2018 – check out our agenda and working papers.

Earlier this week, the IESBA Consultative Advisory Group (CAG) met in New York and provided input on our meeting materials, including project proposals for fees, professional skepticism and non-assurance services.
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• 51% of Gen Z feel it is important for their government to prioritize a national approach to policy, while 32% prefer a globalist approach.
• Gen Z’s top career priorities include: a stable career path (89% important or very important), competitive salary and benefits (87%), and work-life balance (84%).
• 73% of Gen Z respondents would consider a career in professional accountancy, and over one fifth (21%) have already decided to pursue an accounting career.

NEW YORK, SEPTEMBER 25, 2018 – Generation Z (Gen Z) is concerned for the economy and their job prospects, according to a new survey published today by IFAC (International Federation of Accountants), the voice of the global accounting profession. The survey of over 3,300 individuals aged 18-23 across 19 G20 countries takes the pulse of next-generation attitudes on public policy and career expectations.

Understanding Gen Z priorities will be critical for policy makers and employers alike, as public policy debates increasingly confront inter-generational trade-offs in wealth and as Gen Z is set to comprise the world’s largest generation.

Politically Engaged, Economically Conservative
This generation’s top public policy priorities are advancing economic stability, quality education, and job availability. However, views on how to achieve desired outcomes depend on geography. The survey found 51% of Gen Z’ers globally favor a nationalist approach to public policy, while 32% favor globalism and international collaboration.

Gen Z’ers in France (52%) and Germany (43%) most strongly support international policy collaboration, while preference for a nationalistic approach to public policy is strongest in China (65%), South Africa (63%), India (60%), and Russia (59%).

“Gen Z views appear to reflect the tension between national protectionism and global policy cooperation playing out in contemporary geopolitical and economic debates,” said Russell Guthrie, IFAC Executive Director. “The emphasis on economic stability speaks volumes about what the future will hold, given that this generation is already exercising its active and passionate voice on the global stage.”

Beyond the clash between national protectionism and globalization, other concerns include healthcare, especially in Canada, France, Germany and the U.S., and tackling systematic corruption, which was rated a top priority by respondents in Argentina, Brazil, India and Indonesia.

Desire Job Security in Stable Professions
Gen Z’s desire for stability is also apparent in its workplace expectations. They anticipate digitalization and emerging technology to be a double-edged sword, bringing new ways of working but also the decline of traditional jobs as a result.

Contrasted with the “live the dream at all costs” outlook commonly attributed to the preceding Millennial generation, Gen Z’s top priorities in choosing a career include a stable career path (89% important or very important), competitive salary and benefits (87%) and work-life balance (84%).

Gen Z’s perception of professional accountancy is highly aligned with its top two priorities in choosing a career. 87% of Gen Z see professional accountancy as attractive or very attractive in offering a stable career path, while 86% see the profession as meeting or exceeding their salary and benefits expectations.

Nearly three-quarters (73%) of Gen Z respondents would consider a career in professional accountancy, and over one fifth of respondents (21%) indicate that they have already decided to pursue a career in the profession.

“Generation Z brings a great wealth of new and unique talent to the global workforce. This survey identifies why the global accounting profession is well positioned to attract and retain next-generation talent, particularly as the role of the accountant becomes ever more strategic,” said Fayezul Choudhury, IFAC CEO. “Employers from all industries would be well suited to understand Gen Z perspectives as they come to shape the future of the workplace.”

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Survey Method
For this study, Generation Z is defined as individuals born between the mid- 1990s and mid-2000s. Conducted by IFAC, this study gives voice to 3,388 individuals between the ages of 18 and 23 in G20 countries. This represents a sample size of 150-300 participants from: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, and the US.

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 over 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.

Mr. Martin Baumann has been appointed Chair of the International Auditing and Assurance Standards Board (IAASB) for a three-year term beginning January 1, 2019. Mr. Baumann’s appointment was recommended by the Interim Nominating Committee after an extensive international search. The IFAC Board endorsed the Interim Nominating Committee’s recommendation, which was approved by the Public Interest Oversight Board (PIOB), which oversees the IAASB's activities. The Monitoring Group was informed of the recommendation.

“Martin Baumann is a leader who brings vision, a passion for the public interest and a depth of experience to the role of IAASB Chair," said Ryozo Himino, Interim Nominating Committee Chair. "As its next Chair, he will lead the IAASB during an important period of innovation and change as well as continuing the Board’s work developing high-quality international audit, assurance, quality control and related services standards that are accepted and used around the world."

As Chair, Mr. Baumann will lead the IAASB though an environment of rapid advances in current and emerging technology and changes in the breadth and complexity of information needed by investors and other stakeholders. He will be responsible for leading the finalization and implementation of IAASB’s strategic objectives; actively engaging key stakeholders around the world, including national standard setters, regulators, investors and firms of all sizes; and delivering timely high-quality standards in the public interest.

"The IAASB plays a vital role in the world's capital markets. High-quality professional standards developed in the public interest by the IAASB provide the markets with confidence in the important work done by auditors,” said Mr. Baumann. “I am committed to working tirelessly to ensure the IAASB meets its mandate, and continues to be recognized as a highly-regarded independent organization developing high-quality standards."

Mr. Baumann most recently served as Chief Auditor and Director of Professional Standards at the Public Company Accounting Oversight Board (PCAOB), where, with the Board, he was responsible for establishing auditing and related professional practice standards for audits of all companies registered with the US Securities and Exchange Commission. He also chaired the PCAOB’s Standing Advisory Group and served on the IAASB and International Ethics Standards Board for Accountants Consultative Advisory Groups. Previously he was Chief Financial Officer for Freddie Mac and a senior partner at PricewaterhouseCoopers.

Mr. Baumann succeeds Prof. Arnold Schilder, whose term as IAASB Chairman concludes after a decade of service at the end of 2018. Prof. Schilder has led the IAASB with distinction, from new landmark assurance standards addressing key aspects of sustainability reporting, to innovative and groundbreaking new auditor reporting standards, to enhancements now underway to the standards that seek to fundamentally improve audit. There are now nearly 130 jurisdictions around the world using or in the process of adopting the clarified International Standards on Auditing. Mr. Baumann will work closely with the current Chair commencing October 29, 2018 to allow for a smooth transition.

The Interim Nominating Committee was formed by the Monitoring Group in February 2018 to conduct the process for the next IAASB Chair. The Committee was chaired by Ryozo Himino, Vice Minister for International Affairs, Financial Services Agency (Japan), and was comprised of four other members including Guy Andrade, Huguette Labelle, Lord Jonathan Hugh Mance and Sir David Tweedie, and two observers, Rachel Grimes and Eddy Wymeersch. The Interim Nominating Committee followed an open and transparent process to select the most suitable candidate for the position. It will disband now that its mandate has been completed.

For more information about the work of the IAASB, visit its home page at www.iaasb.org.

About the IAASB
The IAASB develops auditing and assurance standards and guidance for use by all professional accountants under a shared standard-setting process involving the Public Interest Oversight Board, which oversees the activities of the IAASB, and the IAASB Consultative Advisory Group, which provides public interest input into the development of the standards and guidance. The structures and processes that support the operations of the IAASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

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The IAESB Personal Perspectives Series shares insights from board members, technical advisors and other key stakeholders on some of the challenges affecting aspiring professional accountants and the importance of effective accountancy learning and development.