ISA 600 Project Update

Enhancing Audit Quality Focusing on Group Audit

This publication was prepared by the IAASB Group Audits Task Force to update the issues under consideration in the revision of ISA 600, Special Considerations‒Audits of Group Financial Statements, and other projects that address other international standards, including ISA 220, Quality Control for an Audit of Financial Statements, and ISQC 1, Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements.

IAASB
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IPSASB September 2017 Meeting Highlights Podcast

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Highlights from the IPSASB's September 19 - 22, 2017, meeting in Toronto, Canada.

 

0:11   --   Introduction and welcome (John Stanford, Technical Director)

0:50   --   Overview of meeting (Ian Carruthers, Chair)

3:44   --   Strategy and Work Plan (Ross Smith, Deputy Director)

5:01   --   Social Benefits (Paul Mason, Principal)

8:06   --   Cash Basis IPSAS (Joanna Spencer, Manager, Standards Development and Technical Projects)

9:21   --   Leases (João Fonseca, Manager, Standards Development and Technical Projects)

11:12  --  Final thoughts (Ian Carruthers, Chair)

12:26  --  Closing remarks (John Stanford, Technical Director)

Meeting Highlights Listen & Subscribe in iTunes

Accountability. Now. eNews: September 2017

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New International Public Sector Financial Accountability Index to Stimulate Reform

At the Chartered Institute of Public Finance and Accountancy (CIPFA)’s 2017 Conference in Manchester, UK, IFAC and CIPFA announced the launch of the International Public Sector Financial Accountability Index.

Developed jointly by both organizations, with the Zurich University of Applied Sciences as knowledge partner, the Index aims to provide a better understanding of accounting and budgeting reform plans to help stimulate wider public financial management (PFM) reform efforts. It covers the following arrangements in each jurisdiction:

  • Current accounting basis and the reporting standards used in financial statements
  • Financial reporting standard-setting structure and processes
  • Current recognition basis for budgets
  • Budget and accounting reform plans
To include your jurisdiction’s data, update or comment on data included about your jurisdiction, please contact us via Index@Accountability.Now.org.
75% of OECD Countries Use Accrual Accounting for Year-End Financial Reports

A report by IFAC and the International Organisation for Economic Co-operation and Development (OECD) explores accounting and budgeting practices at the national government level in OECD countries. It concludes that nearly three-quarters of OECD countries have adopted accrual accounting for their year-end financial reports and more than a quarter now prepare their annual budgets on an accrual basis.

While there is low direct adoption by national governments of international accounting standards, such as the International Public Sector Accounting Standards (IPSAS) or International Financial Reporting Standards (IFRS), many standard setters use IPSAS or IFRS as primary or explicit references for developing their national standards.

Caribbean Countries: On the Reform Path

For years, Caribbean countries have been motivated to incorporate international accounting standards into their national regulations. Accrual Accounting Practices and Reform Expectations in the Caribbean, a survey organized by the Institute of Chartered Accountants of the Caribbean (ICAC), IFAC and the World Bank, charts the state of the region’s public financial management (PFM) reforms. It facilitates a better understanding of reform designs, implementation challenges, and associated benefits.

After reported reforms are implemented, the regional balance will move toward accrual-based accuonting with nine of the surveyed countries expected to implement IPSAS and another six to use N-IPSAS.

A Focus on PFM in West Africa

Commissioned by IFAC and the World Bank, Professor Emeritus Alain Burlaud examines the status of public sector financial reporting in 18 Francophone African countries, highlighting the urgent need to improve public financial reporting quality and increase the number of professional accountants in the region.

Featured Opinions
<a href="http://www.ifac.org/global-knowledge-gateway/business-reporting/discussion/accountability-matters-importance-rights?utm_source=IFAC+Main+List&utm_campaign=b057622">Accountability Matters: A Rights-based Approach in Public Financial Management</a>

Unless public sector leaders are held accountable, protests like the ones seen in Greece will be repeated. Marcel Holder Robinson, Finance Policy Manager (Governments), CIPFA, explains her perspective.

<a href="https://www.youtube.com/watch?v=GVhjCPAi5-c&list=PLixGP7GJD5r0y8rBxHoOgFQQwKkYE3C-U&utm_source=IFAC+Main+List&utm_campaign=b057622347-AN_Partner_Briefing_8_8_2016&u">Transparency and Beyond: Harnessing the Power of Accrual for Public Finances</a>

Curious about the use of balance sheets to manage fiscal risk, the increased use of government financial reports in capital markets, and taking a whole system approach to PFM reforms? Check out these conversations with IPSASB, World Bank, and IMF leaders following a March seminar that explored next steps for accrual accounting in the public sector.

<a href="http://www.ifac.org/global-knowledge-gateway/public-financial-management/discussion/when-corruption-becomes-way-life-and?utm_source=IFAC+Main+List&utm_campaign=b057622347-AN_Part">When Corruption Becomes a Way of Life, and What to Do about It</a>

Vickson Ncube, Chief Executive Officer, Pan African Federation of Accountants, urges citizens in African countries to hold accountable those charged with the responsibility of managing resources, whether in the public or private sector. He represented IFAC at the Africa High Level Public Procurement Forum, where he also argued that no country should allow itself to be a haven for corrupt proceeds from Africa.

<a href="http://www.ifac.org/global-knowledge-gateway/governance/discussion/working-good-governance-public-sector-five-lessons?utm_source=IFAC+Main+List&utm_campaign=b057622347-AN_">Five Lessons and Two Wishes for Good Governance in the Public Sector </a>

Auditors care about the governance arrangements of their auditees. Peter Welch, Audit Director, European Court of Auditors, provides his perspective on what good governance in the public sector means for the European Commission and what he wishes to see in the future.

Major Events in 2017
CReCER

June 6-9 – Mexico City, Mexico
IFAC actively supported the 10th Regional CReCER Conference on Accounting and Accountability for Regional Economic Growth: Fostering Trust for Regional Economic Growth. The conference reflected the need for trust in both government and the private sector to help manage public resources more effectively.

Open Government Partnership Americas Regional Meeting

November 21-22 – Buenos Aires, Argentina
As part of Open Government Week, this meeting will bring over 2,000 representatives from governments and civil society, digital innovators, journalists, and researchers to further the open government agenda in the face of current global challenges. IFAC will present its new International Public Sector Financial Accountability Index to stimulate PFM reform and will engage with regional representatives to further update the Index with information from their respective countries.

More Resources
OECD Budget Transparency Toolkit

Developed in partnership with members of the Global Initiative of Fiscal Transparency (GIFT) Network, including IFAC, the OECD’s Budget Transparency Toolkit offers a gateway to global budget and fiscal transparency institutions. It also highlights official instruments, standards, and guidance materials and demonstrates how these tools can be applied across various areas of the budgeting cycle.
Read more from OECD Deputy Head Ronnie Downes.

Building Blocks of PFM – A Cash to Accruals Toolkit

As part of its Better Government Series, the Institute of Chartered Accountants in England and Wales (ICAEW) recently issued a practical "how-to" guide which sets out six practical building blocks to improve the quality of public financial reporting and public financial management.

Delivering Excellent Public Finance

CIPFA has developed this interactive portal to support a diverse range of information and tools dedicated to the shared aim of strengthening PFM worldwide.

Keeping Business Clean: A CGMA Guide to Countering Fraud and Corruption

In a very timely piece, the Association of International Certified Professional Accountants (AICPA) outlines the role of management accountants in establishing best practices for combatting fraud and corruption in their organization.

IPSASB Chair Ian Carruthers Reappointed

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The International Public Sector Accounting Standards Board (IPSASB) is pleased to announce the re-appointment of its Chair, Ian Carruthers, for a second three-year term commencing January 1, 2019. As Chair, Mr. Carruthers will continue to lead the Board as it establishes high-quality accounting standards for use by public sector entities, promote adoption and implementation of International Public Sector Accounting Standards (IPSAS), and issue guidance on public sector financial reporting. The Nominating Committee reappointed Mr. Carruthers early in his tenure to ensure leadership continuity as global adoption of IPSAS continues to advance.

“Mr. Carruthers has been an exemplary leader of the IPSASB, improving the strategic focus of the Board and efficiency of its activities, and deepening stakeholder relationships,” said James Gunn, Managing Director, Professional Standards. “Ian’s reappointment is welcomed at this important period for the IPSASB, and will help ensure continuity in dialogue with stakeholders as adoption decisions are considered in key nations and regions over the coming years.”

“I am honored to have been reappointed to continue to lead the IPSASB in helping to strengthen public sector financial management globally,” said Mr. Carruthers. “As IPSASB celebrates 20 years of standard setting, we are now addressing some of the most challenging public sector accounting issues, while ensuring our existing standards continue to suit the increasing complexity faced by the sector. We are also continuing to raise awareness of the benefits of adopting the standards for public sector accountability, transparency and sound decision making.”

After spending the first part of his career in PwC’s public sector practice, Mr. Carruthers joined HM Treasury in 1999, where he played a key role in the UK Government’s transition from cash to accrual budgeting and reporting, in particular leading its Whole of Governments Accounts program. In 2006, he joined the Chartered Institute of Public Finance and Accountancy (CIPFA), where he led CIPFA’s work on the role of CFOs in the public sector as well as working with IFAC on the development of the joint International Framework for Good Governance in the Public Sector. Mr. Carruthers continues to work with CIPFA, serving as its part-time Chair, Standards.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through the development of accrual-based International Public Sector Accounting Standards® (IPSAS®) and other guidance for use by governments and other public sector entities. It receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the governments of Canada and New Zealand. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

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 more than 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.

Early Reappointment Ensures Leadership Continuity

IAASB Webcast: Proposed Changes to International Standard on Quality Control

Karin French
IAASB Quality Control Task Force Chair
English

IAASB Quality Control Task Force Chair, Karin French, leads a discussion on proposed changes to International Standard on Quality Control (ISQC) 1 for firms. The proposed changes will result in a restructured and enhanced standard that will change the current approach to firms' systems of quality control.

 

2017 Handbook of International Public Sector Accounting Pronouncements

This Handbook contains the complete set of the International Public Sector Accounting Standards Board pronouncements, the International Public Sector Accounting Standards, published as of January 31, 2017. It also includes the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities.

IPSASB
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