Navigating the national regulatory environment is a crucial part of establishing and developing an effective professional accountancy organization (PAO). The right accountancy regulation model is vital to ensuring a well-functioning profession that produces high-quality financial information, supports economic growth and development, and is relevant to professional accountants and their clients. This publication is designed to support PAOs in their efforts to adapt to recent regulatory evolution, and actively influence stakeholders and influencers.

Navigating the national regulatory environment is a crucial part of establishing and developing an effective professional accountancy organization (PAO). The right accountancy regulation model is vital to ensuring a well-functioning profession that produces high-quality financial information, supports economic growth and development, and is relevant to professional accountants and their clients. In light of regulatory evolution in recent years and the ongoing need for PAOs to adapt to, and actively influence, their environment, the International Federation of Accountants (IFAC) today released new guidance to support PAOs in these efforts.

“There is no ‘one-size-fits-all’ solution for accountancy regulation; there are many different models in place around the world that work effectively,” said IFAC Executive Director Alta Prinsloo. “Understanding the key principles of accountancy regulation, and how they function in practical terms, helps PAOs and their key constituents ensure the profession’s long-term sustainability, and their ability to continue to function in the public interest.”

Making Regulation Work: Principles and Models for the Accountancy Profession explores the scope of accountancy regulation, why it is needed, and key principles for consideration, as highlighted in IFAC Public Policy Position 1, Regulation of the Accountancy Profession and From Crisis to Confidence: A Call for Consistent, High-Quality Global Regulation. It also provides regulatory model examples used in a number of countries, with further information available in country profiles on the IFAC website.

The guidance is part of the PAO Capacity Building Series, which includes guidance on PAO governance, advocacy and public policy, partnerships, and engaging professional accountants in business. It also builds on one of the key findings of the MOSAIC PAO Global Development Report, which cites strengthening PAOs’ legal and regulatory foundations and internal capacity as a critical need for the global accountancy profession.

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.

IAASB Technical Director Matthew Waldron hosts the June 2017 audio podcast featuring Chairman Arnold Schilder and IAASB Members Karen French and Megan Zietsman to discuss key activities and events from the board's June 19-22, 2017 meeting in New York, New York.

• 0:00 to 0:40            Introduction
• 0:41 to 5:14            Chairman’s overview
• 5:15 to 11:51           Quality Control
• 11:52 to 15:42         Networks
• 15:43 to 18:00         ISA 220
• 18:01 to 20:26         Group Audits
• 20:27 to 22:49         Closing remarks and next meeting

Thinking beyond the financial elements of an organization to other key areas of value creation can help small- and medium-sized entities (SMEs) develop a better understanding of their business and provide key insights for the future. Today, it is critical for organizations to think broadly about performance and strategy, and improve communication to shareholders, investors, customers and suppliers on what drives value for the organization.

Creating Value for SMEs through Integrated Thinking: The Benefits of Integrated Reporting, published today by the International Federation of Accountants (IFAC) and the International Integrated Reporting Council (IIRC), highlights how SMEs—and the professional accountants serving them—can benefit from integrated thinking and reporting.

“As the engines of economic development, SMEs are critically important to the world’s economy,” said Sylvia Tsen, IFAC Executive Director. “They have significant value beyond the financial, which integrated thinking and reporting helps uncover. An integrated approach can help SMEs, including not-for-profits, increase their impact because it encourages an inclusive view of operations, risks and opportunities, and future outlook.”

Integrated reporting embraces the six capitals established by the IIRC’s International Integrated Reporting Framework: financial, human, intellectual, manufactured, natural, and social and relationship. Considering each holistically, organizations can build a clearer understanding of the factors necessary to build value over the short, medium, and long term, including how the business uses and effects its resources.

“Integrated reporting is well underway to becoming the global norm, so it has to work for all businesses, large and small,” said Richard Howitt, IIRC Chief Executive Officer. “I am delighted how this new publication shows the considerable benefits for smaller organizations. The IIRC’s principles-based framework is deliberately flexible so that SMEs can apply it to their own specific circumstances.”

Whether advising an organization or working within it, professional accountants are equipped with the skills and understanding to apply integrated reporting, help discover important insights, and provide stakeholders with a broader picture of how the business meets its strategic objectives. Additional resources to help professional accountants improve integrated thinking are available on the Global Knowledge Gateway, including Creating Value with Integrated Thinking: The Role of the Professional Accountant.

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.

Integrated reporting enhances the way organizations think, plan, and report their business’ story. It is used as an opportunity to communicate a clear, concise, integrated story explaining how value is created within the organization. It can help businesses think holistically about their strategy and plans, make informed decisions, manage key opportunities and risks to build investor and stakeholder confidence, and help manage the organization’s performance.

The International Auditing and Assurance Standards Board (IAASB) welcomes the adoption by the US Public Company Accounting Oversight Board (PCAOB) of a new auditing standard to enhance auditor’s reports by providing additional, relevant information to users, including critical audit matters.

The PCAOB’s new standard, which is subject to US Securities and Exchange Commission (SEC) approval, is comparable with the IAASB’s new and revised Auditor Reporting Standards, which require the communication of key audit matters in auditor’s reports of listed entities and became effective for December 2016 year-end audits.

“The PCAOB’s adoption of a standard to enhance auditor’s reports is a significant step forward in providing useful and relevant information to investors and other users,” said Prof. Arnold Schilder, IAASB Chairman. “Auditor’s reports are no longer “boilerplate” reports—auditors are now providing additional information about the audit, which is highly valued by users. We are particularly pleased that the PCAOB’s requirements are comparable to those of the IAASB. Coordination among standard setters is important in striving toward auditing standards that are, in principle, globally consistent.”

Two new publications comparing the IAASB and PCAOB standards have been developed by the IAASB’s Auditor Reporting Implementation Working Group. These publications will assist users in understanding the key similarities and differences between the IAASB and PCAOB requirements. Additional information on the IAASB’s new and revised Auditor Reporting Standards, as well as support materials, are available online.

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.

Following the US Public Company Accounting Oversight Board (PCAOB)’s recent release of AS 3101, The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, the IAASB's Auditor Reporting Implementation Working Group has prepared a comparison between the IAASB and PCAOB standards. These publications will help improve understanding of the key aspects of the standards from both organizations. 

The IFAC Professional Accountants in Business Committee agrees with the International Ethics Standards Board for Accountants that there is a need to strengthen the concept of professional skepticism in the Code of Ethics for Professional Accountants based on clarifying how the fundamental principles support the exercise of professional skepticism in the audit and assurance context.

The Consultative Advisory Group (CAG) of the International Public Sector Accounting Standards Board^® (IPSASB^®) has unanimously elected Thomas Müller-Marqués Berger as CAG Chair until June 2020.

Created in June 2016, the IPSASB CAG is a forum composed of 22 representatives of public and private sector organizations and individuals that are interested in, or affected by, the IPSASB’s work, including those engaged in the preparation, audit, or evaluation of public sector financial reports. The CAG provides advice to the IPSASB on the IPSASB’s strategy and work plan; IPSASB’s projects, including views on technical issues or matters that may impede the adoption and implementation of International Public Sector Accounting Standards^™; and other matters relevant to the IPSASB’s standard-setting activities. Mr. Müller-Marqués Berger was appointed inaugural Chair at the CAG’s inception in 2016 until the membership was in a position to hold a formal vote.

“I am delighted Mr. Müller-Marqués Berger will continue as CAG Chair. His election confirms that CAG members have valued his commitment and strong leadership since its first meeting in June 2016. He has helped develop the CAG as an effective forum for discussing key public interest issues related to the IPSASB’s work,” said IPSASB Chair Ian Carruthers. “I look forward to continuing to work closely with Thomas and the CAG members.”

Thomas Müller-Marqués Berger is a distinguished public sector accounting expert. Currently Global Head of International Public Sector Accounting for Ernst & Young, Mr. Müller-Marqués Berger’s deep experience in accounting standard setting includes chairmanship of the Public Sector Group of Accountancy Europe since 2011, membership of the German Public Sector Committee since 2002, and service to global standard setting as an IPSASB member from 2009–2014.

“I am very appreciative of the support expressed by the unanimous vote of the CAG members in electing me. The CAG has made great progress and we look forward to continuing to foster meaningful input to the IPSASB’s project work and to the development of the IPSASB’s next strategy and work plan,” said Mr. Müller-Marqués Berger.

About the IPSASB
The IPSASB develops accounting standards and guidance for use by public sector entities. It receives support (both direct financial and in-kind) 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.