The International Public Sector Accounting Standards Board^® (IPSASB^®) has released a Consultation Paper (CP), Financial Reporting for Heritage in the Public Sector, for comment.

”There is currently a variety of financial reporting practices for heritage items, which reduces the comparability of public sector entities’ general purpose financial reports (GPFRs),” said IPSASB Chair Ian Carruthers. “Many public sector entities have heritage responsibilities and this Consultation Paper is a first step toward developing financial reporting guidance to support accountability and decision making in this area. We look forward to receiving constituents’ views on our proposals.”

The paper describes heritage items as items that are intended to be held indefinitely and preserved for the benefit of present and future generations because of their rarity and/or significance. It proposes that:

• heritage items’ special characteristics do not prevent them from being assets for the purposes of financial reporting;
• heritage items should be recognized in the statement of financial position if they meet the recognition criteria in the Conceptual Framework; and
• in many cases, it will be possible to assign a monetary value to heritage assets.

The paper also discusses:

• initial and subsequent measurement of heritage assets;
• whether heritage preservation responsibilities could involve present obligations for entities, which should be recognized as liabilities in the financial statements; and
• presentation of information for heritage in GPFRs.

How to Comment
To access the Consultation Paper and its summary At-a-Glance document, or to submit a comment, visit the IPSASB website, www.ipsasb.org. Comments on the Consultation Paper are requested by September 30, 2017. The IPSASB encourages IFAC members, associates, and regional accountancy organizations to promote the availability of this Consultation Paper to their members and employees.

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 international financial institutions, governments, and professional bodies around the world, as well as from IFAC. IPSASB’s governance and standard setting are overseen by the Public Interest Committee (PIC), ensuring its activities follow due process and reflect the public interest.

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 Public Interest Oversight Board has approved an extension of Prof. Arnold Schilder’s term as Chairman of the International Auditing and Assurance Standards Board (IAASB) through 2018. This exceptional extension beyond Prof. Schilder’s normal term is due to the current review of potential enhancements to international standard-setting arrangements being undertaken by key stakeholders.

Since his initial appointment in 2009, Prof. Schilder has played a key role in guiding the IAASB as it strives to enhance the quality and consistency of auditing and assurance practices throughout the world. There are now 113 jurisdictions around the world using or in the process of adopting the clarified International Standards on Auditing.

"I am honored to have the opportunity to continue to lead the IAASB, particularly at this time,” said Prof. Schilder. “We are now in the midst of intense deliberations on changes to a number of fundamental standards underpinning high-quality audits, including those addressing accounting estimates, auditor risk assessments, group audits, and quality control. In addition, we are continuing our work on the implications of data analytics, professional skepticism, emerging forms of external reporting, and the needs of small- and medium-sized entities."

Prof. Schilder has brought a wealth of prior experience to his work on the IAASB. He was a member of the Managing Board of the Dutch Central Bank, responsible in particular for banking regulation and supervision. He has served as the chair of the Basel Committee on Banking Supervision's Accounting Task Force and was nominated by the Basel Committee to be a member of the Public Interest Oversight Board when it was first established. Earlier in his career he was president of Royal NIVRA (now Nederlandse Beroepsorganisatie van Accountants) and was an audit practitioner for nearly 26 years, serving small- and medium-sized entities and as an international audit partner. He also served as a part-time professor of auditing at the Universities of Amsterdam and Maastricht.

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.

Nearly 60% of Caribbean countries included in a recent survey have already adopted International Public Sector Accounting Standards (IPSAS) or national accounting standards based on IPSAS, and the remaining 40% are at various stages of the implementation process according to Accrual Practices and Reform Expectations in the Caribbean, a study conducted by the International Federation of Accountants (IFAC) and the Institute of Chartered Accountants of the Caribbean (ICAC).

This study, the result of an initial survey during the 2016 Strengthening Public Financial Reporting and Accountability conference in the Bahamas, examined the current status of public financial management (PFM) reforms in the Caribbean. It also analyzed the individual countries to assess: (a) the current and future accounting basis and reporting standards for public financial statements; (b) the current and future recognition basis for budgeting; and (c) the current and future external audit requirements for public financial statements.

“Study participants identified areas where stakeholder groups could partner to step up knowledge sharing and collaboration between governments, the accountancy profession, and other stakeholders in the Caribbean,” said Jasmine Davis, ICAC President. “These partnerships may give rise to improved public financial reporting, better informed public decision making, better quality of public services, better management of assets and liabilities, better public financial management, increased accountability, and, ultimately, enhanced trust of citizens in government.”

The study showed that most Caribbean countries are in the process of reforming and modernizing their financial reporting, budgeting, and auditing practices.

• After the reforms have been implemented, the regional balance will move from mostly cash-based accounting to nearly two-thirds using accrual-based accounting. In addition, 60% of those surveyed are expected to have implemented IPSAS while the other 40% will be using national standards based on IPSAS.
• For preparation of the budget, however, most central governments in the Caribbean (60%) still use the cash basis, with only Belize transitioning to accrual.
• Almost all Caribbean countries included in this study already use internationally recognized auditing standards (International Standards on Auditing or International Standards of Supreme Audit Institutions) or national standards based on international standards.

“IFAC has been a driver of change in the Caribbean to modernization accounting systems and move toward more efficient and transparent public financial management. In collaboration with regional and national professional accountancy organizations in the Caribbean, IFAC works to promote conferences, train, and develop cooperation agreements,” said Fayez Choudhury, IFAC CEO. ”The study also suggests that most countries in the Caribbean recognize the importance of high-quality, reliable, and transparent public financial accounting and reporting arrangements and are gradually implementing reforms to achieve these desired outcomes. IFAC, through its Accountability. Now. initiative, together with the ICAC and the various Caribbean national professional accountancy organizations, continues to support this transition.”

A digital version of the report can be found at on the IFAC and ICAC websites.

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.

About ICAC
Since its establishment in 1988, the Institute of Chartered Accountants of the Caribbean has provided a forum for the advancement of the accountancy profession in the Caribbean. Today, with a network of approximately 3,000 professionals, the ICAC is the leading regional organization dedicated to advancing the interest of accountants and professionals in the finance industry within the Caribbean through the promotion of internationally acceptable standards and best practices, thought leadership, research and continuing professional development. In 2006, the ICAC was recognized as an “Acknowledged Regional Grouping” of IFAC.

The results of new study, G20 Public Trust in Tax, which surveyed citizens across the G20 on issues of trust and international taxation, was released this week at a roundtable discussion that included the UK’s top tax administrator, HMRC Permanent Secretary Edward Troup, tax leaders from global firms, members of the accountancy profession, and the press.

The study, prepared by the Association of Chartered Certified Accountants, Chartered Accountants Australia and New Zealand, and IFAC, draws on the views of more than 7,600 people across G20 countries.

Some of the key findings include:

• people want governments to put tax cooperation ahead of tax competition—73% of people in G20 countries think it is important or very important for governments to cooperate with each other on tax policy to create a more coherent international tax system;
• 57% of people in G20 countries trust or highly trust professional tax accountants as a source of information about the tax system; and
• in contrast, people in G20 countries have become deeply distrustful of politicians when it comes to information about the tax system, with 67% either distrusting or highly distrusting politicians.

James R. Dalkin has been appointed as the incoming Chair of the Consultative Advisory Group (CAG) to the International Auditing and Assurance Standards Board (IAASB), effective April 1, 2017.

His appointment, approved by the Public Interest Oversight Board (PIOB),* follows his election by representatives of the IAASB CAG.**

The CAG is an independent body comprising regulators, preparers, international investor and user groups, and other stakeholders with an interest in international auditing and assurance. It provides strategic and technical advice in the public interest to the IAASB. Mr. Dalkin will play a key role ensuring the CAG’s views are included in the IAASB’s deliberations.

“I am honored to be elected by my CAG peers as the group’s new chair at a time of great change and opportunity for the profession,” Mr. Dalkin said. “The 32 organizations represented on the CAG have a critical interest in seeing the development of the best possible audit and assurance standards. I look forward to working with CAG representatives to ensure the IAASB clearly hears the advice from end-users of the IAASB’s standards and guidance.”

Mr. Dalkin is a Director in the Financial Management and Assurance Team with the United States Government Accountability Office (GAO) and is also an observer to the Committee of Sponsoring Organizations of the Treadway Commission Advisory Board (COSO). He has been an IAASB CAG representative since 2013, and has previously served as a board member of the American Institute of CPAs’ Auditing Standards Board.

At the GAO, Mr. Dalkin directs work to develop and maintain government auditing standards (the Yellow Book); internal control standards for the US federal government (the Green Book); and the GAO’s work with the accounting and auditing profession. He is also responsible for the audits of the US Securities Exchange Commission and the Federal Deposit Insurance Corporation and is an adjunct professor at Georgetown University.

“James’ extensive public sector auditing experience, and demonstrated leadership driving transparency, accountability, and serving the public interest make him ideally suited to articulate the views of end-users in the IAASB’s work,” said Prof. Arnold Schilder, IAASB Chairman. “As we continue to focus on enhancing audit quality, the CAG’s advice—under James’ leadership—remains critically important to the standard setting process. I thank him, and his CAG colleagues, for their work, which clearly supports the IAASB’s public interest mission.”

About the IAASB CAG
The CAG comprises a diverse mix of 32 Member Organizations** including, user groups, regulators, financial executives, international public interest organizations and other professional bodies such as lawyers, valuation experts and actuaries with interests in, or related to audit and assurance. The CAG is an integral and important part of the IAASB's formal process of consultation, and Representatives of CAG member organizations provide the IAASB advice on numerous areas, including the IAASB’s agenda and project timetable (work program); its technical projects; and other matters of relevance to the IAASB’s activities. The Public Interest Oversight Board (PIOB) oversees the work of the CAG, and the roles and responsibilities of the CAG Chair are approved by the PIOB.

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.

*The PIOB
Established in 2005 as the oversight board for the global accountancy profession, the PIOB oversees the International Auditing and Assurance Standards Board, International Ethics Standards Board for Accountants, the International Accounting Education Standards Board, and their CAGs, as well as IFAC’s Compliance Advisory Panel, with the objective of increasing the confidence of investors and others that their activities are properly responsive to the public interest. PIOB members are nominated by international institutions and regulatory bodies.

**IAASB CAG Members Organizations and Observers

• Accountancy Europe
• Associação Brasileira de Instituições Financeiras de Desenvolvimento
• Basel Committee on Banking Supervision
• BUSINESSEUROPE
• CFA Institute
• European Commission
• European Federation of Accountants and Auditors for SMEs
• Financial Executives Institutes International
• Gulf States Regulatory Authorities
• Information Systems Audit and Control Association
• Institute of Internal Auditors
• International Accounting Standards Board
• International Actuarial Association
• International Association of Financial Executives Institutes - Asian Region
• International Association of Financial Executives Institutes - Europe, Middle East, and African Region
• International Association of Insurance Supervisors
• International Bar Association
• International Corporate Governance Network
• International Organization of Securities Commissions
• International Organization of Supreme Audit Institutions
• International Valuation Standards Council
• Islamic Financial Services Board
• Japan Securities Dealers Association
• National Association of State Boards of Accountancy
• Organisation for Economic Cooperation and Development
• Sri Lanka Accounting and Auditing Standards Monitoring Board
• United Nations Conference on Trade & Development
• World Bank
• World Federation of Exchanges

Observers

• Financial Services Agency, Japan
• International Monetary Fund
• US Public Company Accounting Oversight Board

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, according to the landmark study Accrual Practices and Reform Experiences in OECD Countries by the International Federation of Accountants (IFAC) and the Organisation for Economic Co-operation and Development (OECD).

The study, which examined accounting and budgeting practices at the national government level in OECD countries, discusses the challenges and benefits of accruals reforms and considers what steps countries are taking to make better use of accrual information in the future.

“High-quality financial reporting is essential to ensure that governments make fiscal decisions based on up-to-date information and an accurate understanding of their financial position,” said Fayez Choudhury, IFAC CEO. “They provide a mechanism through which legislatures, auditors, and the public at large can hold governments accountable for their financial performance.”

The study showed that most OECD countries have reformed and modernized their financial reporting practices over the last few decades:

• approximately three-quarters of OECD countries have adopted accrual accounting for their year-end financial reports as a key priority;
• more than a quarter of OECD countries prepare their annual budgets on an accrual basis; and
• audit techniques and accounting standard-setting mechanisms have also evolved significantly in the wake of accounting reforms.

The study also points out that while the direct adoption of international accounting standards, such as International Public Sector Accounting Standards (IPSAS) or International Financial Reporting Standards (IFRS), by national governments remains very low, many standard setters use IPSAS or IFRS as primary or explicit references for developing their national standards.

“While governments still seek to improve the usefulness and comprehensibility of their financial reports, a majority of OECD countries expressed satisfaction that accounting reforms have already resulted in greater transparency and accountability of their financial operations,” said Jón R. Blöndal, Head of the OECD Budgeting and Public Expenditures Division.

A digital version of the report can be found at on the IFAC and OECD websites.

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.

About OECD
Working with over 100 countries, the OECD is a global policy forum that promotes policies to improve the economic and social well-being of people around the world.

Accountants working in small- and medium-sized practices (SMPs) around the world are facing heightened staffing challenges, according to the latest IFAC Global SMP Survey results. Attracting new clients, keeping up with new regulations/standards, and pressure to lower fees remained key challenges faced by SMPs.

Additionally, the anticipated impact of technology developments over the next five years increased substantially in 2016 over 2015. Investing in and staying current with software and achieving a digital, paperless environment topped this list of technology challenges.   

Despite these challenges, SMPs’ future performance expectations increased slightly from a year ago in three of the four service areas, with the exception of tax. Growth is expected to be driven by advisory/consulting services, along with accounting, compilation, and other non-assurance/related services, with 45% and 44%, respectively, predicting fee revenue increases in these areas in 2017.

“The ever-increasing pace of technological change represents both a challenge and opportunity for SMPs,” said IFAC CEO Fayez Choudhury. “As trusted business advisors to small- and medium-sized entities or SMEs, a sector critical to global economic stability and growth, SMPs need to consider how they can best leverage technological advances to reduce costs and offer value-added services to meet clients’ changing demands and expectations. In addition, SMPs that keep pace with developments in technology are likely to do better in attracting, retaining, and nurturing talent.” 

Additional key findings from the survey include:

SMPs recognize the value of offering business advisory and consultancy services.

• A significant majority of respondents provide some form of advisory services, with corporate advisory (48%), management accounting (46%), and human resource/employment regulations (30%) being the most common.

SMEs continued to be challenged by economic uncertainty and rising costs.

• Consistent with 2015, the top challenges facing SME clients were economic uncertainty and rising costs (with 61% and 59%, respectively, rating these as a high or very high challenge).

SMP performance in 2016 improved slightly over 2015.

• In 2016, 30% or more of SMPs reported moderate or substantial increases in fee revenue across services areas, compared to 27% or more in 2015.

Some regions, countries, and larger SMPs were not well represented in the survey results; caution should be exercised when attempting to generalize survey results to specific countries or regions, or SMPs of all sizes. See the full results, including breakdowns by region and size of practice, and subscribe to receive SMP updates, on the IFAC website: www.ifac.org/SMP.

About the Survey
The 2016 IFAC Global SMP Survey received 5,060 respondents, representing 164 countries. It was conducted October–November 2016 in 23 languages. The survey design and reporting were undertaken in collaboration with Sarah Webber and Donna L. Street, lead researchers from the University of Dayton (US). The survey’s translation and distribution were only possible with the support of IFAC member organizations and partners. The next IFAC Global SMP Survey is expected to open in 2018.

Designed to be completed by senior SMP professionals, whose clients are predominately SMEs, the survey takes a snapshot of key issues, and tracks important trends and developments, facing this critical sector. The survey results help IFAC and its members gain an understanding of the specific challenges and opportunities faced by SMPs and SMEs globally, and as a result, better serve them. To this end, IFAC develops and facilitates the sharing of tools and resources to help build SMPs’ capacity, including publications to support practice management and international standards implementation. These and over 400 original articles and 10,000 links to related resources can be accessed in the IFAC Global Knowledge Gateway.

About the SMP Committee
The SMP Committee of the International Federation of Accountants^® (IFAC^®) represents the interests of professional accountants operating in small- and medium-sized practices (SMPs). The committee develops guidance and tools and works to ensure the needs of the SMPs are considered by standard setters, regulators, and policy makers. The committee also speaks out on behalf of SMPs to raise awareness of their role and value, especially in supporting SMEs, and the importance of the small business sector overall.

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. It 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.

Delegates from the World Bank, International Monetary Fund (IMF), International Public Sector Accounting Standards Board (IPSASB), and International Federation of Accountants (IFAC) convened today in Washington, DC, for an international seminar, Transparency and Beyond: Harnessing the Power of Accrual in Managing Public Finances.

IPSASB Chair Ian Carruthers remarked, “Coinciding with the 20^th year of IPSASB’s standard-setting program, the seminar brings together global organizations committed to strong public financial management (PFM). IPSAS—-high-quality global accrual-based accounting standards—enable governments to produce high-quality financial information that leads to better decision making and builds accountability and trust with citizens. The event is a crucial first step in deciding IPSASB’s strategic direction for the next five years, the projects it will undertake, and how it will work with other global organizations to strengthen PFM globally.”

Delegates began by taking stock of the current PFM landscape, with a look at the new Organisation for Economic Co-operation and Development (OECD)-IFAC report featuring OECD countries’ recent status and PFM reforms. Delegates emphasized the need to increase the availability and use of high-quality accrual information for transparency and decision making by public sector organizations themselves, as well as key stakeholders including parliamentarians, journalists, civil society, and capital market participants. The World Bank delegates highlighted the importance of implementing the standards, and the real challenges countries face in accounting and reporting, specifically, and broader public sector reforms required to actually achieve better decision making. Importantly, delegates concluded with commitments to continue to work toward influencing governments to pursue the needed reforms, building on recent successes and growing evidence that supports the use of accrual reporting based on IPSAS.

IFAC Chief Executive Officer Fayez Choudhury said, “Government spending accounts for a significant portion of a country’s GDP, and many governments are incurring deficits that will have to be settled by future generations. We must address both the supply of, and demand for, better public sector financial information. Public sector leaders must embrace accrual-based IPSAS as the basis of transparent, accountable financial reporting, which is an essential component of strong PFM. And citizens must be encouraged to demand stronger PFM and hold their government officials to account.” (See more about IFAC’s Accountability. Now. initiative.)

Mr. Christopher Towe, Deputy Director of the IMF Fiscal Affairs Department, said, “Comprehensive and high-quality fiscal reports, including financial statements that summarize the government’s financial position and performance, are necessary for governments, legislators, citizens, and markets to have a complete, up-to-date, and accurate understanding of a country’s fiscal position. Establishing a full balance sheet requires capacity to adopt accrual accounting standards, including valuation of assets and liabilities. This one-day seminar provided a valuable platform to bring together all key stakeholders, including standard setters, producers, and users of government financial statements. It facilitated a debate on various perspectives, opportunities, and challenges in adoption of accrual accounting by governments and provided a platform to discuss the way forward.”

Mr. Gabriel Quiros, Deputy Director of the IMF Statistics Department, said, “We are encouraged that several IMF members are pursuing a phased migration toward accrual accounting. However, we are also cognizant of the challenges faced by some of the Fund’s members with regard to these reforms. For many years, Government Finance Statistics compiled on a cash accounting basis have supported measuring the liquidity constraint of governments. As the nature of fiscal activity has evolved in our members, the evolution of—and complementarities between—accrual-based statistical methodology and accounting standards for the public sector also will help countries ensure the sustainability of fiscal operations.”

“We actively support and promote the use of accrual-based accounting standards in countries to enable sustainable, long-term change,” said Jennifer Thomson, Director in Operations Policy and Country Services at the World Bank. “Reliable data on government assets and liabilities, as well as revenue and expenditure, provides a strong foundation for public financial management, and serves as a key tool for facilitating implementation of broader reforms in the countries we support.”

World Bank Director, Governance Global Practice, Mr. Jim Brumby, said, “The IPSASB has done outstanding work in developing the accrual accounting standards. There are many implementation issues that countries encounter in adopting these standards and the World Bank Group remains ready to assist this process. As well as the technical and systems work this requires, a particular focus should remain on the best uses of this information—how accruals can assist governments in doing a better job with the resources they mobilize and how citizens can better hold their governments to account.”

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 Government Accounting Standards Board, the Asian Development Bank, the Chartered Professional Accountants of Canada, the South African Accounting Standards Board, the New Zealand External Reporting Board, and the governments of Canada, New Zealand, and Switzerland.

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.

About the IMF
The International Monetary Fund (IMF) is an international organization working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Created in 1945, the IMF is governed by and accountable to the 189 countries that make up its near-global membership. For more information, visit www.imf.org.

About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and development expertise for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in pursuing the World Bank Group’s mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.

A new study, The Accountancy Profession—Playing a Positive Role in Tackling Corruption, from the International Federation of Accountants (IFAC) shows professional accountants are playing a major, positive role in reducing corruption, along with other key actors in the global economy that support strong governance structures.

“Corruption is an economic cancer that disproportionately impacts those least able to absorb its malignancy,” said Fayez Choudhury, IFAC Chief Executive Officer. “This study shows that the accountancy profession—acting in the public interest—is an important part of the cure.

“The study confirms that the accountancy profession is a crucial part of strong national governance architectures that confront corruption, in partnership with good government and strong businesses. And vitally, the study shows professional ethics, education, and oversight—at the core of the global accountancy profession—are key to our positive impact in tackling corruption.

“Meaningful progress in this age-old fight will require three things: continued strong cross-sector collaboration; reinvigorated international interest in public financial management; and greater adoption of high-quality international standards on financial reporting, auditing, and ethics,” Mr. Choudhury concluded.

Among the key findings, the study reveals that a higher percentage of accountants in the workforce strongly correlates to better outcomes in Transparency International’s global Corruption Perceptions Index.

Examining the profession’s impact in nations with stronger governance structures, the correlation was significantly greater in G-20 countries and member nations of the Financial Action Task Force.

And when professional accountancy organizations are present in an economy, having adopted the global profession’s ethical, educational, and investigation and discipline requirements, the positive correlation with Transparency International’s index rises even further.

Conducted by the Centre for Economics and Business Research, the study builds on two earlier reports: Nexus 1: The Accountancy Profession, Behind the Numbers and Nexus 2: The Accountancy Profession, A Global Value Add, which examine both the size of the global profession and its economic contribution to the global economy.

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 International Auditing and Assurance Standards Board (IAASB) today released its Work Plan for 2017–2018 following a public consultation with stakeholders. The continuing relevance of the board’s strategic objectives was also confirmed with the IAASB release of a Supplement to its Strategy for 2015–2019: Fulfilling Our Public Interest Mandate in an Evolving World.

The Work Plan is guided by the three underlying strategic objectives set in the five-year Strategy:

• a continued focus on International Standards on Auditing (ISAs) as the basis for high-quality audits;
• the importance of the IAASB’s standards for other services to address emerging needs of stakeholders; and
• the board’s intention to strengthen collaboration with others to address public interest matters relevant to its work.

“The IAASB’s strategic objectives contribute to enhancing audit quality. The intent is for the audit standards and guidance being developed to further enhance that quality and to uphold the trust placed in audits and auditors,” noted Prof. Arnold Schilder, IAASB Chairman. “Respondents to the consultation stressed the importance of addressing key topics that contribute to high-quality audits in a changing business environment, influenced by technology, complexity, and demands for continued relevance of the audit.”

Work Plan Priorities

The Work Plan prioritizes addressing the most pertinent public interest issues. The IAASB is also considering how quality can be further embedded in the way that firms approach audits and other engagements under the IAASB’s International Standards. The IAASB recognizes the importance of addressing the concerns of small- and medium-sized practices (SMPs), including considering how auditing standards can be effectively applied to audits of small- and medium-sized entities, and standards to support other services provided by SMPs.

The IAASB will publish a timetable of current projects on its website, to be updated on a quarterly basis, to maintain transparency on progression.

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.