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.

Building on the success of ongoing capacity building projects throughout Africa, the International Federation of Accountants^® (IFAC^®) today announced the selection of the Institute of Chartered Accountants of England and Wales (ICAEW) to begin work with the accountancy profession and regulators in Kyrgyzstan to further develop the profession.

“A robust and well-functioning accountancy profession contributes significantly to sustainable businesses, sound capital markets, effective stewardship of public finances, and—ultimately—economic growth.” said Alta Prinsloo, Executive Director and Chief Operating Officer. “We are looking forward to embarking on this journey with the accountancy profession in Kyrgyzstan.”

ICAEW will work with the Union of Accountants and Auditors (UAA), an IFAC associate, and a range of national stakeholders, including the State Service for Regulation and Supervision of Financial Markets, to address recommendations from the World Bank Centre for Financial Reporting Reform’s Kyrgyz Republic: Corporate Financial Reporting, A Country Strategy and Action Plan, issued in 2012 and officially approved by the Kyrgyz government.

“Kyrgyzstan has developed a plan for economic development in coordination with the international development community—the time to move forward and transform the Kyrgyz accountancy profession is now,” said Vernon Soare, ICAEW Chief Operating Officer. “This project will enable the UAA and the profession’s key stakeholders to sustain positive reform and contribute to continued growth in Kyrgyzstan over the longer term.”

In 2014, IFAC received almost £5 million from the UK Department for International Development (DFID) to fund PAO capacity building in at least ten emerging countries over seven years. Projects under the IFAC Capacity Building Program using DFID funding are currently underway in Ghana, Nigeria, Rwanda, Uganda, Zimbabwe, and regionally in Africa. Partner organizations are selected following global Calls for Expressions of Interest and an extensive proposal and review process by the IFAC PAO Capacity Building Program Independent Selection Panel.

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.

About DFID
The UK Department for International Development (DFID) leads the UK’s work to end extreme poverty. They are ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit. For more information, visit www.gov.uk/dfid.

About ICAEW
ICAEW is a world leading professional membership organisation that promotes, develops and supports over 147,000 chartered accountants worldwide. It provides qualifications and professional development, shares knowledge, insight and technical expertise, and protects the quality and integrity of the accountancy and finance profession.

The International Federation of Accountants^® (IFAC^®) and its Chief Operating Officer, Alta Prinsloo, were honored to receive the Accountancy Capacity Building Champion of the Year Award at the 2016 The Accountant & International Accounting Bulletin awards.

IFAC’s Professional Accountancy Organization (PAO) Capacity Building Program supports the profession’s growth in the developing world, where the profession’s skills are vital to embedding transparency, credibility, and good governance into national economies.

IFAC CEO Fayez Choudhury said IFAC is delighted to receive the award on behalf of PAOs and their members in emerging economies. “Their passion to grow and support their economies—and become sustainable, self-supporting PAOs—is an inspiration,” he said.

“Led by Alta and her team, IFAC’s capacity building work is made possible by local PAO enthusiasm, visionary funding provided by the UK Department for International Development (DFID), and our delivery partners—highly experienced PAOs from the UK, Ireland, and Kenya—whose on-the-ground experience makes them invaluable assets in helping grow our global profession.”

DFID-funded projects are currently operating in Ghana, Nigeria, Rwanda, Uganda, and Zimbabwe, with additional projects under active consideration. These projects are delivered in-country by a wide range of PAOs, including: Association of Chartered Certified Accountants, Chartered Institute of Public Finance and Accountancy, Institute of Chartered Accountants in England and Wales, Institute of Chartered Accountants of Scotland, Institute of Certified Public Accountants in Ireland, and Institute of Certified Public Accountants of Kenya.

IFAC’s capacity building award was collected by President Olivia Kirtley, who was separately honored with the The Accountant and International Accounting Bulletin’s Lifetime Achievement Award.

“With Olivia concluding her two-year term as IFAC president in November, her Lifetime Achievement award is a symbol of the remarkable career that preceded her presidency. As our president, she is an especially effective global ambassador for the profession. And at a time when the accountancy profession is making great progress in promoting women into leadership, Olivia has spent her career shattering glass ceilings and—most importantly—reaching back to help and encourage women following behind her,” Mr. Choudhury said.

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.

In the ongoing effort to decrease the gap between the global need for accountancy talent and available, high-quality professional accountants, the International Federation of Accountants^® (IFAC^®) today issued its annual Call for Expressions of Interest for organizations wishing to partner in professional accountancy organization (PAO) capacity-building efforts. This Call for Expressions builds on IFAC’s commitment to strengthen the accountancy profession and PAOs.

IFAC invites organizations to indicate their interest in providing PAO capacity-building services under a UK Department for International Development (DFID) funded program. In 2014, IFAC and DFID, which leads the UK’s work to end extreme poverty, entered into an agreement to strengthen PAOs in emerging economies. Under the agreement, DFID is providing £4.935 million over seven years to strengthen PAOs in at least 10 DFID focal countries to play a greater role in furthering economic development. Projects are currently underway in Ghana, Nigeria, Rwanda, Uganda, and Zimbabwe. IFAC facilitates, coordinates, and supervises these projects to strengthen developing PAOs.

Interested organizations need to demonstrate that they have the required qualifications and relevant experience to execute projects and perform the needed services. Based on information in the Expressions of Interest, the PAO Capacity Building Program’s Independent Selection Panel will evaluate interested organizations and select eligible organizations for the database. In the future, eligible organizations may be invited to bid on specific projects.

All types of organizations are welcome to express interest, but please note that the majority of projects under the PAO Capacity Building Program require establishing ongoing peer-to-peer partnerships between the delivery partner and the beneficiary organization. Individual consultants may also express interest, but will not be included in the database of potential partner organizations and will only receive information relating to smaller, specific projects fitting with their particular expertise.

To submit an Expression of Interest, please click on one of the following links.

• Interested organizations, including PAOs and firms: 2016 Expressions of Interest—Potential Partner Organizations.
• Interested individual consultants: 2016 Expressions of Interest—Interested Consultants.

For additional information, please see the online questions & answers or email DanaJensen@ifac.org.

The Expressions of Interest submission deadline is November 21, 2016.

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 DFID
The Department for International Development (DFID) leads the UK’s work to end extreme poverty. We're ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit. For more information visit www.gov.uk/dfid.

Strong information and communications technology (ICT) systems are crucial for effective operations and facilitating interaction and communication with stakeholders. The role of such systems is particularly important for emerging professional accountancy organization (PAOs) as they seek to build capacity and serve the accountancy profession. In a step toward improved ICT systems for emerging PAOs, the International Federation of Accountants^® (IFAC^®) today announced the selection of a joint venture between the Association of Chartered Certified Accountants (ACCA) and the Institute of Certified Public Accountants of Kenya (ICPAK) to provide guidance on building strong ICT systems for PAOs in Africa.

“This joint venture between ACCA and ICPAK is an excellent example of north-south cooperation, and will result in south-south cooperation as ICPAK continues to support other PAOs in the region,” said Alta Prinsloo, IFAC Executive Director and Chief Operating Officer. “This project will assist PAOs in navigating information and improving communications with their key stakeholders.”

The joint venture will develop guidance on designing and implementing an ICT system. The guide, which will include a model ICT implementation roadmap, will be tailored for wide application in Africa through extensive consultation with representative PAOs in the region.

“With members in all corners of the world, ACCA uses technological innovations on a daily basis, and has extensive experience of adapting these systems to suit the needs of the PAO,” said Stephen Heathcote, ACCA’s Executive Director – Markets. “To solve ICT challenges, any organization needs to have a good understanding of the principles and good practices, and have a roadmap for its end destination. We are delighted to work with ICPAK on this important project.”

“As a leading PAO in Africa, ICPAK brings a great deal of Africa-specific knowledge to this partnership—we are well versed in the ICT infrastructure challenges faced by PAOs in our region,” said Dr. Patrick Ngumi (PhD), ICPAK’s Chief Executive. “We look forward to working with ACCA, in consultation with neighboring PAOs, to develop relevant and practical tools for emerging PAOs to address these challenges.”

In 2014, IFAC received almost £5 million from the UK Department for International Development (DFID) to fund PAO capacity building in ten emerging countries over seven years. The selection of ACCA and ICPAK was made following a global Call for Expressions of Interest and an extensive proposal and review process involving multiple global organizations and the IFAC PAO Capacity Building Program Oversight Committee and Independent Selection Panel. This joint venture will continue to build on the funding agreement and support projects currently underway in Africa.

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 ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. It offers business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

ACCA supports its 178,000 members and 455,000 students in 181 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 95 offices and centres and more than 7,110 Approved Employers worldwide, who provide high standards of employee learning and development. Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. It believes that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. ACCA’s core values are aligned to the needs of employers in all sectors and it ensures that through its range of qualifications, it prepares accountants for business. ACCA seeks to open up the profession to people of all backgrounds and remove artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee professionals and their employers. More information is here: www.accaglobal.com

About DFID
The UK Department for International Development (DFID) leads the UK’s work to end extreme poverty. They are ending the need for aid by creating jobs, unlocking the potential of girls and women and helping to save lives when humanitarian emergencies hit. For more information, visit www.gov.uk/dfid.

The International Auditing and Assurance Standards Board (IAASB) today released International Standard on Auditing (ISA) 250 (Revised), Consideration of Laws and Regulations in an Audit of Financial Statements, and conforming amendments to other International Standards, which respond to new requirements in the International Ethics Standards Board for Accountants (IESBA)’s Code of Ethics for Professional Accountants addressing non-compliance with laws and regulations (NOCLAR). The revisions enable the IAASB’s International Standards to continue to be applied effectively alongside the IESBA Code, and clarify and emphasize key aspects of the IESBA Code in the IAASB’s Standards.

“The IESBA has established clear expectations for professional accountants in responding to non-compliance with laws and regulations, representing an important contribution to the public interest,” said IAASB Chairman Prof. Arnold Schilder. “It is only fitting that the IAASB’s International Standards acknowledge and reflect these important changes, and, thereby, reinforce the public interest role played by auditors and professional accountants who provide services covered by our Standards.”

ISA 250 (Revised) will be effective for audits of financial statements for periods beginning on or after December 15, 2017. Amendments to the IAASB’s International Standards for other services have a similar effective date.

“Among other enhancements, the changes to ISA 250 prompt the auditor to think about whether to report identified or suspected NOCLAR to an appropriate authority outside the entity, taking into consideration the provisions of laws, regulations, or relevant ethical requirements in their jurisdiction, and to consider the impact of NOCLAR on the audit,” explained James Gunn, Managing Director, Professional Standards. “It is important that the IAASB and IESBA have acted contemporaneously on such an important public interest matter.”

Also available is a staff-prepared At a Glance document, explaining the main changes from the extant ISA and other International Standards, and Basis for Conclusions, explaining the IAASB’s rationale for its decisions.

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 International Federation of Accountants^® (IFAC^®) and Institute of Chartered Accountants in England and Wales (ICAEW) today announced the release of their new report From Crisis to Confidence: Good Regulation, Governance, and Culture.

The report is an output of a July 2016 roundtable discussion convened by IFAC and ICAEW, which brought together 50 UK and EU chief and senior executives from business and regulatory bodies. The executives met to discuss and debate how the global regulatory environment can be enhanced—with an ultimate goal of improving confidence in the financial and capital markets, business, and government.

“The expertise of the roundtable’s participants makes their clear and candid call for stronger organizational governance all the more important. At a time when we are seeing citizens express a deepening mistrust of government and institutions through the political process, reframing the thinking around how to develop smart and effective regulation is vital,” said IFAC Chief Executive Officer, Fayez Choudhury.

Other topics discussed at the roundtable summarized in the report include:

• Governance and culture: Why almost ten years after the global financial crisis, rebuilding public trust in financial and capital markets, business, and government remains a vital goal, despite the significant progress achieved from a regulatory perspective.
• Regulatory fragmentation: How differences in cultures and expectations concerning regulation, and different legal environments, are leading to an increasingly fragmented international regulatory environment.
• Complexity of regulation: Why it is important to achieve the right balance in the regulatory environment and how unnecessary complexity is sometimes created when we seek compliance-based regulatory solutions.
• The future of regulation: How a holistic view that seeks to create a stronger system for today and tomorrow, rather than addressing past issues, is the right one for the global regulatory environment.

The second in a series of discussions, the roundtable reinforced the need for effective and smart regulation in a global economy amidst global political unrest.

Michael Izza, ICAEW Chief Executive, said, “Although regulation is only one piece of the puzzle, we cannot rebuild trust unless society has faith that those regulations protect the public interest. This trust is undermined when the rules are too complex, too fragmented, or their purpose is unclear. At the same time, we need to recognize that regulation can’t do it all. Companies must take responsibility for the way they operate. This is why we are calling for everyone to work together to end the culture of piling on more and more rules and find answers that achieve the primary aims of protecting the public and encouraging ethical behavior.”

The full report, From Crisis to Confidence: Good Regulation, Governance, and Culture, is available on the IFAC website.

ICAEW Media Enquires
James Douglass, Media Relations Manager, +44 20-7920-8718

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 ICAEW
ICAEW is a world leading professional membership organisation that promotes, develops and supports over 147,000 chartered accountants worldwide. We provide qualifications and professional development, share our knowledge, insight and technical expertise, and protect the quality and integrity of the accountancy and finance profession.

As leaders in accountancy, finance and business our members have the knowledge, skills and commitment to maintain the highest professional standards and integrity. Together we contribute to the success of individuals, organisations, communities and economies around the world.

Because of us, people can do business with confidence.

ICAEW is a founder member of Chartered Accountants Worldwide and the Global Accounting Alliance.

About #BuildTrust
IFAC is dedicated to facilitating a conversation that puts trust and integrity at the heart of the global economy. Strong, transparent, and accountable organizational governance and smart global regulation are critical. Without them, we can’t build trust in the financial systems that underpin the world’s interconnected economy. We’d love to see you join the conversation on Twitter. Click here to spread the message and help #BuildTrust.

Following a rigorous nominations process, the International Federation of Accountants^® (IFAC^®) today announced the appointments of three outstanding members of the global accountancy profession to lead important committees supporting the profession: Monica Foerster as Chair of the Small and Medium Practices (SMP) Committee; Arjuna Herath as Chair of the Professional Accountancy Organization (PAO) Development Committee; and Charles Tilley for a second term as Chair of the Professional Accountants in Business (PAIB) Committee. The IFAC Board approved their appointments for three-year terms beginning January 1, 2017.

“All three Chairs are proven leaders with deep expertise who are profoundly committed to the public interest. They bring substantial experience that will be of great benefit to the global profession,” said IFAC Chief Executive Officer Fayez Choudhury. “We look forward to working with them to advance our support for SMPs, accountants in business, and the development of PAOs—all vital components of a strong global accountancy profession.”

SMP Committee

As SMP Committee Chair, Ms. Foerster will play a key role in directing and representing IFAC’s work to support the SMP/small- and medium-sized entity (SME) sector worldwide. The SMP Committee provides strategic advice to IFAC and undertakes activities in three main areas: input on international standards development to help ensure their proportionality and scalability to the sector; developing and sharing practical guidance and resources; and raising awareness of the value of SMPs/SMEs worldwide.

Ms. Foerster comes to her new role having previously served as SMP Committee Deputy Chair (2015-2016) and as a member since 2014. With over 20 years of experience in the accountancy profession, Ms. Foerster is currently a partner at Confidor—an accounting, tax, and law firm—and SMP Director and Working Group coordinator at the Instituto dos Auditores Independentes do Brasil (Ibracon), an IFAC member organization. Additionally, she is a Counselor at the Brazilian Accounting Council (CRCRS).

PAO Development Committee

The PAO Development Committee serves as an important advisor to IFAC in its work to develop, promote, and strengthen the accountancy profession and PAOs in the public interest. As Chair, Mr. Herath will provide direction to the committee’s efforts, including input to guidance and outreach to raise awareness of the role of the profession and PAOs in economic development. Mr. Herath will also serve as Co-Chair of the Steering Committee for MOSAIC, the Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration, alongside a Co-Chair representing the donor signatories. 

A member of the committee since 2013, Mr. Herath joined the committee as President of both the Institute of Chartered Accountants of Sri Lanka and the South Asian Federation of Accountants, and is a partner at Ernst & Young Sri Lanka and Maldives. He has more than two decades of experience as a Chartered Accountant in industry, commerce, and public practice. Mr. Herath also serves on the Board of Directors of the Sri Lanka Accounting and Auditing Standards Monitoring Board and completed a term on the board of the Confederation of Asia Pacific Accountants and as a commissioner of the Sri Lanka Securities and Exchange Commission.

PAIB Committee

Re-appointed as Chair of the PAIB Committee, Mr. Tilley will continue to provide leadership to IFAC’s work supporting and promoting professional accountants in the private and public sectors, who work in a wide variety of roles critical to the success and sustainability of their organizations. As strategic advisors to IFAC, the PAIB Committee identifies relevant business and accountancy issues that need to be addressed by the global profession, and advises on how best to do so. The PAIB Committee provides input into IFAC initiatives, projects, and activities to ensure inclusion of perspectives and issues relevant to professional accountants in business, and supports knowledge exchange among PAOs.

Mr. Tilley has served as Chair of the Committee since 2014, and is a former IFAC Board member and Business Reporting Project Chair. He recently became Executive Chair of the Chartered Global Management Accountant (CGMA) Research Foundation, after stepping down as Chief Executive of the Chartered Institute of Management Accountants (CIMA), a role he had held since 2001. Additionally, he sits on the UK Financial Reporting Council’s Lab Steering Group, is Senior Advisor to the International Integrated Reporting Council Board Chair, and is a Council member of the Prince of Wales’ Accounting for Sustainability. Previously, he served on the UK Treasury Best Practice Panel. In 2016, Mr. Tilley was recognized on the UK’s New Year’s Honors List and awarded the Order of the British Empire for his services to the economy, leadership, and significant achievements.

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.

It has long been recognized that small- and medium-sized entities (SMEs) power the global economy. And accountants working in small- and medium-sized practices (SMPs) remain their most trusted advisor, according to a report released today by the International Federation of Accountants^® (IFAC^®).

Informed by a comprehensive literature review, the report illustrates the important relationship between SMPs and their clients—primarily SMEs. It examines the key drivers of the advisor-client relationship, including demand for—and supply of—SMP business advisory services. Growth implications for SMPs, as well as how professional accountancy organizations (PAOs) around the world can support them, are also explored.

“Today’s SMPs are knowledge-rich service providers with great potential to expand beyond compliance to fill a variety of business advisory roles. The report highlights factors that can help them understand how to most effectively evolve and diversify their service offerings,” said IFAC CEO Fayez Choudhury. “As SMEs have long been considered the ‘engine rooms’ of global growth and development, it is important that IFAC and PAOs help make SMPs aware of the opportunities that will help them and their clients thrive.”

Among other findings, the report reveals the following insights:

• A number of factors influence SMEs’ demand for advice, including both external factors, such as competition and regulation, and personal factors, such as the relationship and level of trust between the SMP and the SME owner-manager, as well as the size and nature of the entity;
• Dependent on their size, competencies, location, and appetite for risk, SMPs are continuing to increase and diversify the array of business advisory services they provide to meet SMEs’ needs;
• Despite competition from other service providers, accountants, especially SMPs, remain SMEs’ preferred advisors; and
• Due to the multitude of factors involved, client-advisor interactions between SMEs and SMPs are complex, but generally these relationships are long term and based on a solid foundation of trust and communication.

For additional insights into each of these areas and more, access the full report and key findings on the IFAC website.

Commissioned by IFAC, researchers at the Bucharest University of Economic Studies and the University of Dayton conducted a literature review of over 90 academic research papers and reports published since 2010 in order to update the original Information Paper, The Role of SMPs in Providing Business Support to SMEs. The research was facilitated by the University of Dayton in accordance with an agreement with IFAC.

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.

The International Auditing and Assurance Standards Board (IAASB)’s Data Analytics Working Group is furthering its work to understand how the use of technology, and more specifically data analytics, is able to enhance audit quality. Today, the IAASB released a Request for Input, Exploring the Growing Use of Technology in the Audit, with a Focus on Data Analytics. Supplementing this publication is a call for nominations for a newly formed Project Advisory Panel to further advise the IAASB and the Data Analytics Working Group (DAWG) on developments relevant to standard setting.

“Technological change is occurring at a rapid pace, ushering in the capability to capture and communicate data digitally, on an unprecedented scale and almost instantaneously. With this change comes increased stakeholder expectations about how technology can be used to enhance the effectiveness and efficiency of audits of financial statements,” said IAASB Chairman Prof. Arnold Schilder. “With this publication we hope to bring together relevant stakeholders to meet these expectations, which starts by fostering a dialogue about how innovative techniques can be used.”

The Request for Input provides insights into the opportunities and challenges with the use of data analytics in the audit of financial statements and outlines the insights gained from the DAWG’s activities to date. The purpose of the Request for Input is to:

• Inform stakeholders about the IAASB’s ongoing work to explore effective and appropriate use of technology, with a focus on data analytics, in the audit of financial statements; and
• Obtain stakeholder input and perspectives on whether all of the considerations relevant to the use of data analytics in a financial statement audit have been identified.

“We are encouraged by the work accounting firms, national standard setters, and others are doing to explore how data analytics can be used in the audit,” noted Bob Dohrer, IAASB member and DAWG Chair. “While the International Standards on Auditing do not prohibit the use of data analytics, the standards need to better address increasing complexity, taking into account the rapidly changing technological developments in both the business and audit environment. The Request for Input highlights that timely feedback about innovations in this area, including views about the potential implications to the audit of today, will be of use in a number of the IAASB’s current projects.”

The Working Group is seeking input from investors, preparers, those in governance roles, standard setters, practitioners, internal auditors, regulators, academics, and other stakeholders in the external reporting supply chain. The input will assist the IAASB in effectively responding to these developments in the public interest, including determining whether new or revised international standards or guidance may be necessary. Comments to the Request for Input are requested by February 15, 2017.

More information and updates on the project, are available on the IAASB’s project page.

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.