Professional accountants have a meaningful opportunity to enable more effective Enterprise Risk Management (ERM) within their organizations, according to a report published today by IFAC (the International Federation of Accountants).

Businesses face rapid change and increasing uncertainty driven by a myriad of factors, including geopolitical events, volatile financial markets, technology developments, cybersecurity, data privacy concerns, and climate change. According to the report, professional accountants can play an amplified role within their organizations to identify, measure and mitigate emerging risks through robust ERM practices.

The report underscores the reality that risk management remains underdeveloped in many organizations. A survey of mainly US-based organizations, conducted by North Carolina State University and the American Institute of CPAs, found that less than 20% of organizations view their risk process as being integrated with strategy and objectives, and 69% of organizations do not have a comprehensive ERM process in place.

To drive more effective ERM, management must draw upon the Chief Financial Officer and finance function to ensure risk management practices provide a holistic understanding of opportunity and risk linked to objectives and value creation.

“This is a particularly uncertain time for businesses as the global economy experiences heightened volatility and rapid change. In this environment, proper risk management will be increasingly important for organizations to ensure their resiliency and success over the long term,” said Kevin Dancey, IFAC CEO. “Professional accountants are well positioned to better serve the organizations they work for by enabling effective enterprise risk management that identifies both risks and opportunities for the business.”

CFOs and accountants with clear risk management responsibilities are in a better position to make individually and functionally greater contributions to risk management. The report identifies three ways in which CFOs and finance functions can enhance their contribution to ERM:

• Align risk management with value creation and preservation;
• Drive insights and enable decisions through provision of risk modeling and analytics, data governance and identification of organizational risk appetite; and
• Enable integration and interconnectivity by breaking down siloes across the organization to share information.

Enabling effective ERM will require accountants to employ various competencies, including strong leadership and interpersonal skills, and to commit to lifelong learning on risk management and emerging risk issues. In the coming decades, it will be critical to better integrate risk management into professional education and training for accountants, and to improve the relevance and quality of Continuing Professional Development (CPD). 

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.

The global search for an exceptional individual to lead the International Auditing and Assurance Standards Board (IAASB) has been restarted and applications from qualified candidates around the globe are now being accepted.

The Chair leads the IAASB’s strategic direction and development of high-quality international audit standards, as well as facilitates the consultative processes that underpin the board’s credibility and activities. The Chair develops and maintains effective relationships with international oversight authorities and regulatory bodies, national standard setters, investor and preparer communities, the audit practitioner community and other key stakeholders.

The successful candidate has significant, senior-level experience and is well recognized within professional and regulatory communities. He or she has effective leadership, diplomacy, communication and strategic skills; demonstrated professional competency; and a strong commitment to the IAASB’s public interest mission. He or she also understands the significant travel commitment involved.

The IAASB Chair is appointed for a renewable three-year term, commencing May 1, 2019. A complete job description, along with application instructions, is available on the IAASB website. Applications are due January 31, 2019.

This global search is being conducted by the Interim Nominating Committee, which was formed in February 2018 to conduct the process for the next IAASB Chair. The search has recently restarted after the designated appointee decided not to assume the post for personal reasons. More information on the Committee is available online.

The International Ethics Standards Board for Accountants (IESBA) is pleased to advise the reappointment of Dr. Stavros Thomadakis as IESBA Chairman for a further one-year renewable term commencing 1 January, 2019.

Under Dr. Thomadakis’ leadership, the IESBA has completed a number of major projects, resulting in the revised and restructured International Code of Ethics for Professional Accountants (including International Independence Standards), which will become effective in June 2019. His dedication to high quality, fit-for-purpose ethics standards for the global accountancy profession is reflected in the ambitious strategy and work plan 2019-2023 just approved by the IESBA. 

“A robust, clear and future-ready Code of Ethics and a new 5-year strategy and work plan provide the IESBA with a solid platform and direction,” said Dr. Thomadakis.

“I look forward to continuing to work with board colleagues, IESBA staff and our global stakeholders to deliver on the plan’s priority projects in the public interest. I also remain committed to coordinating with the International Auditing and Assurance Standards Board. The relationship developed between the boards is working well and will help enhance the relevance and applicability of new standards issued by both”. 

About the IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust globally operable International Code of Ethics for Professional Accountants (Including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

The structures and processes that support IESBA operations are facilitated by IFAC. Please visit www.ethicsboard.org for more information, and follow us on Twitter @Ethics_Board.

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.

The Call for Nominations for 2020 volunteer opportunities to serve on the independent international audit and ethics standard-setting boards is now open.

There are five volunteer openings on the International Auditing and Assurance Standards Board (IAASB) and six volunteer opportunities on the International Ethics Standards Board for Accountants (IESBA), including public member positions.  

High-quality international standards that underpin the global accountancy profession are developed by independent standard-setting boards comprised of dedicated volunteers committed to the public interest.

Nominations for these volunteer positions are open to all stakeholders, including institutional investors and analysts, audit committee members, corporate governance professionals, academics, regulators, policy makers, standard setters as well as individuals from governmental agencies, accountancy firms and the general public. Nominations of non-accountants for the public member vacancies are strongly encouraged. Travel support is available to public members, self-nominees and qualified candidates from developing nations.

Candidates should have strong knowledge of the subject matters considered by a particular board and be fluent in English. While selection for a board is based on objective review of qualifications and experience, the nominations process is focused on encouraging a diverse pool of candidates. Nominations of highly qualified candidates from Africa, Middle East, Latin America, Caribbean and Asia are strongly encouraged. Nominations of female candidates from all regions are particularly welcome.

Nominations can be submitted through the Nominations Database before February 15, 2019. For more details regarding available positions and membership requirements, please see the Call.

The nominations process, with public interest oversight, aims to select the most suitable candidates for the available positions, while also aiming to achieve gender, regional and professional balance.

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.

About the IESBA
The IESBA is an independent standard-setting board that develops and issues, in the public interest, high-quality ethical standards and other pronouncements for professional accountants worldwide. Through its activities, the IESBA develops the Code of Ethics for Professional Accountants, which establishes ethical requirements for professional accountants. The structures and processes that support the operations of the IESBA are facilitated by IFAC. Please visit https://www.ethicsboard.org for more information, and follow us on Twitter @Ethics_Board.

IFAC (the International Federation of Accountants) today calls upon G20 countries to pursue smart regulation, heightened transparency, and inclusive growth to rebuild trust in institutions and advance global economic progress.

“Low levels of public trust threaten both economic and political stability,” said Fayezul Choudhury, IFAC CEO. “Leaders in government and business must work together to bolster good governance and collaborate for effective public policies that inspire confidence in the institutions supporting the global economy.”

G20 countries play a crucial role in fostering institutions and governance models that can anticipate, respond to, and mitigate future crises. In advance of the 2018 G20 Summit in Buenos Aires, Argentina, IFAC issues 10 actionable recommendations for G20 countries to support the global economy.

Develop Smarter Regulation

Regulation must effectively support the public interest through well-targeted conception, effective design and committed implementation. To achieve smarter regulation, G20 countries must:

• Develop and adopt consistent, comprehensive, and high-quality regulation
• Create a coherent, transparent global regulatory environment that limits divergence; and
• Implement internationally-accepted standards to enhance confidence and stability in the global financial system.

Increase Transparency

Robust transparency in the public and private sectors is key to earn public trust, fight corruption, encourage good governance and promote ethical business practices. To increase transparency in the global economy, G20 countries must:

• Strengthen governance in the public and private sectors
• Embrace integrated reporting
• Enhance public sector financial management; and
• Collaborate to tackle corruption.

Enable Inclusive Growth

The fruits of a growing global economy must be shared inclusively to inspire confidence in the future. To enable inclusive growth, G20 countries must:

• Foster an environment that supports small- and medium-sized entity growth
• Create a secure and digital-ready investment environment; and
• Collaborate for a coherent international tax system.

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.

At a critical moment of development and adoption of international public sector accounting standards, the Nominating Committee issues its Call for Nominations to join the International Public Sector Accounting Standards Board (IPSASB) for a term beginning in January 2020.

Volunteers are central to the effective functioning of the IPSASB, through active participation in meetings, task forces and outreach activities.

Experience
The Nominating Committee is looking for candidates with the following background:

• Experience as public sector national standard setters;
• Preparers of accrual-based financial statements at both national and sub-national levels, including ministries of finance and treasury departments, and international organizations, especially those reporting directly or indirectly in accordance with IPSAS; and
• Users of general purpose financial reports, such as parliamentarians, budget offices, and credit-rating agencies.

The Nominating Committee considers matters such as relevance of candidates’ professional backgrounds, technical skills, past and present contributions to the accountancy profession, and the ability to make a significant contribution to the matters and areas of emphasis in the IPSASB Strategy and Work Plan. 

The promotion of IPSAS is and will continue to be a key strategic focus; nominees are expected to be strong advocates of IPSAS and should be willing to make regular presentations in their regions every year.

Additional Considerations
Gender balance is extremely important and, therefore, nominations of qualified female candidates are strongly encouraged.

Nominations of candidates from Latin America-Caribbean, Africa-Middle East, and Asia are particularly welcome.

Time Commitment and Financial Requirements
The minimum time requirement of an IPSASB member is approximately 48 days per year, excluding travel, with many members committing up to 70 days per year. This comprises approximately 18 days for physical attendance at Board and task force meetings and 30 days for preparation, teleconferences and outreach activities. Members are also strongly encouraged to attend the biannual meetings of the Consultative Advisory Group.

Costs of attending IPSASB meetings are borne by the member or the member’s nominating organization. Funding is available for public members who do not have a sponsoring organization. There is additional financial support available to self-nominees and candidates nominated by qualifying organizations from developing nations.

How to Submit Nominations
Nominations can be submitted online from the date of the issue of this Call until February 15, 2019. Instructions on how to apply are available on the Nominating Committee’s webpage.

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.

The International Auditing and Assurance Standards Board (IAASB) seeks public comment by March 15, 2019 on its Exposure Draft of proposed ISRS 4400 (Revised), Agreed-Upon Procedures Engagements.

The demand for Agreed-upon procedures (AUP) engagements continues to grow across jurisdictions.Changes in regulation, such as the increase in audit exemption thresholds in many jurisdictions, have also driven increased demand for AUP engagements. This is especially relevant for smaller entities, as the increased audit exemption thresholds prompt stakeholders to look for alternative services to an audit.

To ensure that the IAASB’s standard on AUP engagements remains relevant in the current business environment, the IAASB proposes to enhance key concepts in the standard, including:

• The role of professional judgment in an AUP engagement.
• Disclosures relating to the practitioner’s independence or lack thereof.
• Guidance on appropriate or inappropriate terminology to describe procedures and findings in AUP reports.
• The use of a practitioner’s expert in an AUP engagement.
• Restrictions on the distribution and use of the AUP report.

In developing proposed ISRS 4400 (Revised), the IAASB has received significant stakeholder input, including feedback from its November 2016 Discussion Paper, Exploring the Demand for Agreed-Upon Procedures Engagements and Other Services, and targeted continuing stakeholder outreach.

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. 

IFAC (International Federation of Accountants) seeks volunteers with a strong commitment to the public interest to contribute to the strength and vitality of accountancy globally and its future by serving on the IFAC board and committees.

The Call for Nominations for the IFAC Board and Committees in 2020 details openings and requirements for successful nominations for membership on the IFAC Board and three IFAC committees— Professional Accountancy Organization Development, Professional Accountants in Business, and Small and Medium Practices Committees.

The Nominating Committee encourages all IFAC members to review the Call for Nominations, including vacancy details and composition targets. Gender equality is especially important to the Nominating Committee to ensure balance; nominations of qualified female candidates are strongly encouraged. The companion guide offers strategic guidance in selecting candidates, including identifying the most qualified and diverse nominee for each available position to reflect the depth and breadth of the global accountancy profession.

Nominations can be submitted online via the Nominations Database by February 15, 2019. Additional information on the Nominating Committee and its open, transparent selection process is available on the Nominating Committee web page.

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.

Visionary French accountancy leader, Mr. René Ricol, was today awarded the international accountancy professions’ highest honor, the IFAC Global Leadership Award in Honor of Robert Sempier.

“René Ricol has served the global accountancy profession with distinction,” said IFAC’s immediate past President Rachel Grimes. “During his term as IFAC President, he was a passionate advocate for standard-setting in the public interest, initiating, with international regulators and standard setters, enhancements that led to the current arrangements for setting international audit and ethics standards and helping to create the shared public-private model we recognize and still strongly support today.”

Mr. Ricol is a Chartered accountant, financial expert, and former expert of the court of last resort (Cour de Cassation). He was recognized as Grand Officer of the National Order of Merit and Grand Officer of the Legion of Honor in July 2011. He also received the Grand Cross Medal of the National Order of Merit in 2014.

He joined IFAC’s Board in October 1997 and served as the IFAC President from November 2002 to November 2004. From 1994 to 1998, he was President of the Ordre des Experts Comptables and was President of the Compagnie Nationale des Commissaires aux Comptes from 1985 to 1989.

Since 1991, he has served as President of the Observatoire National des Petites et Moyennes Entreprises. He is one of the founders and primary movers of the “Tous Pour l’Emploi” movement, set up with the help of professional associations and organizations to help businesses create jobs.

In August 2005, the Prime Minister entrusted him with the mission to restructure the l'Agence Pour la Création d’Entreprises (APCE), where he led the adoption of a strategic plan and implementation of a new governance structure.

Mr. Ricol was also Chairman of “France Investissement” (France Investment) set up by the government in partnership with private investors to accelerate the development of capital investment in France and increase available funds for small and medium sized companies.

In 2008, he led the development of a report about the financial crisis for President Nicolas Sarkozy who subsequently said in an interview that all the decisions made by the G4, G5, G20 were proposed in this report. René Ricol was subsequently appointed as National Credit Mediator to support and help businesses facing financial issues.

As General Commissioner for Public Investment from 2010 until 2012, he was in charge of the management of 35 billion euro of investments for the development of a future-oriented French economy.

He initiated what would become the pact of responsibility and solidarity announced by François Hollande in December 2013.

In September 2014, René Ricol was entrusted by the French President François Hollande with a mission related to retirement savings’ mobilization to support French economy. 

About the IFAC Global Leadership Award
Established in 2017 by the IFAC Board, the IFAC Global Leadership Award in Honor of Robert Sempier recognizes individuals who make outstanding contributions to the global accountancy profession. The award honors the contributions of Robert Sempier, IFAC’s first executive director and replaces two past IFAC Awards—the Robert Sempier Award (established in 1991) and the IFAC International Gold Service (IGS) Award (established in 2010).

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.

Today IFAC (the International Federation of Accountants), the voice of the global accountancy profession, announced the election of Dr. In-Ki Joo of the Republic of Korea as its President. Dr. Joo will serve a two-year term through November 2020, serving previously as IFAC Deputy President since November 2016.

A leading academic voice in accountancy, Dr. Joo is a Professor, Emeritus, of Accounting at the Yonsei University School of Business. He previously served as the Dean of the University College and the Dean of Academic Affairs at Yonsei University.

Dr. Joo’s commitment to serving and representing the profession is evident in his varied and deep leadership roles, including on the Board of LG Electronics and for the Korean Institute of Certified Public Accountants. Throughout his career, Dr. Joo has additionally served in top leadership positions at the Confederation of Asian and Pacific Accountants, the Korean Accounting Association, the Korean Academic Society of Business Administration, and the Korean Academy of Business Ethics.

“I believe strongly in the potential of the profession to support the growth and stability of organizations, financial markets, and global economic progress,” said Dr. Joo. “I am honored and energized to lead IFAC during this time of great change and opportunity for our profession. In particular, I look forward to focusing on a future ready profession which harnesses the strength of its education platforms and commitment to ethics.”

IFAC also announced the election of Alan Johnson as Deputy President. Mr. Johnson’s more than three decades in the public and private sector of the profession includes a recent appointment as Non-executive Director and Chair of the Audit and Risk Committee at the Department for International Development (DFID) in the UK.

Previously, Mr. Johnson was CFO of Unilever’s global foods business, responsible for leading the finance functions in over 80 countries. He has also led Unilever’s global internal audit function and has worked in seven countries across Europe, Africa, and Latin America.

Mr. Johnson is a former Director of Jerónimo Martins SGPS, S.A., an $18 billion food retailer with operations in Portugal, Poland, and Colombia.

New Board Members Elected
The IFAC Council elected six new members to the IFAC Board, spanning four continents:

• Sheila Fraser of Canada, nominated by Chartered Professional Accountants of Canada (CPA Canada)
• Margrét Pétursdóttir of Iceland, nominated by Nordic Federation of Public Accountants (NRF)
• Christine Ramon of South Africa, nominated by South African Institute of Chartered Accountants (SAICA)
• Jianhua Tang of China, nominated by Chinese Institute of Certified Public Accountants (CICPA)
• Ayse Ariak Tunaboylu of Turkey, nominated by Expert Accountants' Association of Turkey (EAAT)/ Union of Chambers of Certified Public Accountants of Turkey (TURMOB)
• Lisa Padmore of Barbados, nominated by Institute of Chartered Accountants of Barbados (ICAB)

IFAC Admits New Member Organization
IFAC is pleased to admit the Association of Accountants of the Republic of Latvia (AARL) as a new member organization, sponsored by the Latvian Association of Certified Auditors.

Established in 1994 with the objective to certify and improve the professional skills of accountants, the AARL has shown great progress since admission as an IFAC Associate in 2013, particularly in the area of international standards adoption.

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.