Accountancy Leaders and Development Partners Address Public Financial Management Reform
Antananarivo, Madagascar
English
Development partners joined accountancy leaders last week to discuss public financial management (PFM) reforms in Francophone Africa. The leaders attended the Public Financial Management, Strengthening Institutions and Accountability conference, hosted by the International Federation of Accountants® (IFAC®), Pan African Federation of Accountants (PAFA), Fédération Internationale des Experts Comptables et Commissaires aux Comptes Francophones (FIDEF), World Bank, and African Development Bank.
The leaders evaluated progress since last year’s successful PFM event in Dakar, Senegal, at which participating Finance Ministers pledged to support PFM reforms. They heard that PFM reform progress has been slow across the 18 Francophone Africa countries. The quality of budgeting and financial reporting, and the effectiveness of internal and external auditing and parliamentary oversight, remain poor in the majority of these countries. Delegates underscored the public sector capacity challenge, and recognized many more accounting professionals are required to achieve the desired reform outcomes.
Speaking at the event, IFAC Executive Director, Alta Prinsloo, expressed support for the call issued by FIDEF to review the accountancy profession model in Francophone Africa to ensure it meets the demand for public sector accountancy skills. Under the current model, professional accountancy organization members in Francophone Africa are limited to professional accountants in public practice.
Ms. Prinsloo said, “Our Accountability. Now. message is clear. High-quality public financial reporting supports informed decision making, effective and efficient spending, quality public services, enhanced transparency and accountability, and—ultimately—increased trust in government. The demand for accountancy skills necessary to produce high-quality public sector financial reporting is both a public interest obligation, and an opportunity for professional accountancy organizations in Francophone Africa.”
About IFAC
The International Federation of Accountants (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.
IESBA eNews: September 2016 Meeting Highlights; New NOCLAR Video Q&As
English
IESBA Meeting, September 26–30 in New York, New York
The September meeting highlights feature updates on the IESBA’s current projects and initiatives, including: Long Association, Structure of the Code of Ethics for Professional Accountants (the Code), Safeguards, Part C, and Professional Skepticism. The IESBA also was briefed on the progress of the review of academic and other literature on the topic of fees, and considered proposed IESBA Staff Q&As on its recently released standard addressing non-compliance with laws and regulations (NOCLAR).
The IESBA unanimously approved final changes to the Code relating to the long association of firm personnel with an audit or assurance client. The IESBA plans to hold a teleconference in November 2016 to agree on the effective date of the revised provisions. Subject to Public Interest Oversight Board approval, these changes, developed under the current structure and drafting conventions for the Code, will be made available on the IESBA website by the end of the year.
Listen to September Highlights >> | Read September Meeting Summary >>
Professional Skepticism
At its September meeting, the IESBA also considered preliminary recommendations from the joint Professional Skepticism Working Group—comprising representatives of the IESBA, International Auditing & Assurance Standards Board (IAASB), and International Accounting Education Standards Board—on actions that the three standard-setting boards could take, individually and in coordination, to enhance the application of professional skepticism in their respective standards, following an update on feedback to the IAASB’s Invitation to Comment (ITC). The IESBA agreed to explore the feasibility of short-term enhancements to the Code, potentially for public exposure in early January.
See the ITC >>
IESBA CAG Meeting: September 13-14
The Consultative Advisory Group (CAG) meeting started with a joint session with the IAASB CAG to receive report-backs on the boards’ respective NOCLAR projects, and to discuss matters arising from the preliminary work of the boards’ joint Professional Skepticism Working Group—see left. The IESBA CAG meeting continued with CAG representatives discussing and/or providing input on several board projects—Structure, Safeguards, Part C, and Long Association—followed by an update on the fees initiative.
PIOB Meeting Update
At its September 14-16 meeting, the Public Interest Oversight Board (PIOB) approved the nominations recommended by the Nominating Committee for the 2017 composition of the IESBA, and other groups it oversees. Two of the IESBA members will be retiring from the board at the end of the year. IESBA Chairman Dr. Stavros Thomadakis attended a joint session with the Chairs of the CAGs of the other standard-setting board to discuss common issues and the PIOB’s 2017-2019 Strategy consultation, among other issues.
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NEW Video: NOCLAR Q&A with Anne Molyneux
Anne Molyneux, representing the International Corporate Governance Network on the IESBA CAG, explains how the new NOCLAR standard can enhance corporate governance and support the public interest, urging all those in the financial reporting supply chain—not only accounting professionals but also regulators and lawmakers—to understand they have a role in preventing and bringing to light potential non-compliance with laws and regulations.
Watch Video >>
NEW Video: NOCLAR Q&A with Lucy Elliott
Lucy Elliott, representing the Organisation for Economic Co-operation & Development (OECD) on the IESBA CAG, illuminates key aspects of the OECD’s Anti-Bribery Convention, and explains how the Convention and the IESBA’s NOCLAR standard share key public interest objectives, including fighting the global scourges of bribery and corruption. She calls on regulators to consider strengthening jurisdictional whistleblower protections, which would enable compliance with the Convention requirements and complement and support the new IESBA standard.
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NEW Video: NOCLAR Q&A with Matt Waldron
Matt Waldron, representing the CFA Institute on the IESBA CAG, discusses the new NOCLAR standard’s relevance to the investment community, particularly how the standard can enhance trust and confidence in organizations. He also explains how corporate governance, including tone at the top, is critical to creating a culture that discourages non-compliance and encourages speaking up and reporting instances of possible non-compliance with laws and regulations.
Watch Video >>