The evolving environment in which the International Auditing and Assurance Standards Board (IAASB) operates demands a strategy that reflects, among others, changing technology; a dynamic small- and medium-sized entity landscape; and emerging reporting needs. This is global stakeholders’ opportunity to shape the board’s strategy by commenting on the proposed draft.

In the Proposed Strategy for 2020–2023 and Work Plan for 2020–2021, the IAASB puts forth a way forward that it believes meets stakeholders’ evolving needs, and is in the public interest. Enhancing our processes, including using technology and appropriate resourcing, are included in the strategy and are crucial to success. These enhancements will also maximize the impact of our activities, thereby enabling more timely responses to global trends and needs.

The Work Plan highlights the board’s commitment to completing significant projects currently underway, while balancing the needs of different stakeholders.

Feedback on this consultation and on the IAASB’s strategic direction is requested by June 4, 2019 from all interested stakeholders.

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 newly published sequel to the 2017 G20 public trust in tax report from ACCA (the Association of Chartered Certified Accountants), CA ANZ and IFAC (the International Federation of Accountants) reveals a high level of distrust among the public in politicians and non-government organisations (NGOs) when it comes to tax systems.

The new report also shows that public trust in professionals, such as accountants and lawyers, remains high by comparison.

When it comes to evaluating their tax systems, respondents across G20 nations are most concerned about transparency, complexity, inequality and corruption in tax systems.

Respondents’ concerns about inequality stem from the perception in English-speaking countries that high income earners and multinationals are treated better by tax systems than average or low income earners. Respondents in China, Indonesia and India had high levels of trust in tax authorities, politicians and accountants, reported efficient tax filing, and supported tax competition to attract multinational business.

G20 public trust in tax report is based on an online survey of more than 8,400 members of the general public across G20 countries and New Zealand, revealing that respondents have:

• a trust deficit amongst politicians and the media; 58 per cent of respondents expressed distrust or strong distrust in politicians, down nine per cent since 2017. Similarly, distrust in the media stands at 37 per cent down four per cent since the last survey;

• the highest level of trust in professional tax accountants at 55 per cent, down a marginal two percentage points compared to 2017, and professional tax lawyers at 50 per cent, up one per cent;

• consistent levels of mistrust year-on-year in non-government organisations at 37 per cent, an increase of two percent compared to 2017;

• divided views of trust in government tax authorities, with 37 per cent saying they trust or highly trust tax authorities and 34 per cent distrusting or highly distrusting them.

Commenting on the second year’s findings, Chas Roy-Chowdhury, global head of tax at ACCA says: ‘Once trust is lost, it’s hard to regain. Tax is a complex issue and one that touches all our lives - so that trust is important. What’s clear from this research is the need for all significant players – from politicians to tax experts - to work together to build and sustain the public’s trust in tax. And while the accountancy profession fares the best again in this year’s results, we cannot be complacent about these findings.’

Kevin Dancey, IFAC CEO adds: ‘Given that accountants adhere to a strong ethical code that supports their public interest obligations, it’s vital that we actually understand what the public thinks of tax systems and who they go to for trusted advice. This research gives everyone working in tax, including policy makers, politicians, media and accountants, a powerful insight in what the public really think. By understanding their views, professionals can better work to inspire confidence in the system as a whole.’

Michael Croker from CA ANZ concludes: ‘Our research shows that people say they broadly trust and want to hear more from experts and professionals, but scepticism in politicians and the media continues. If transparency is one of the pillars of an effective tax system, then the professionals and experts working in tax need to strive for even more clarity on how tax works nationally and globally. It’s clear there is still much work to be done to sustain this hard earned trust it amongst the tax-paying public.’

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.

About ACCA
ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants, offering 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 208,000 members and 503,000 students in 179 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 104 offices and centres and more than 7,300 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.

ACCA has introduced major innovations to its flagship qualification to ensure its members and future members continue to be the most valued, up to date and sought-after accountancy professionals globally.

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. More information is here: www.accaglobal.com

About CA ANZ
Chartered Accountants Australia and New Zealand is a professional body comprised of more than 117,000 members living and working around the world. We focus on the education and lifelong learning of our members, and engage in advocacy and thought leadership in areas of public interest that impact the economy and domestic and international markets.

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 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. 

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.

The global search for an exceptional leader to Chair the International Auditing and Assurance Standards Board (IAASB) will be restarted by the Interim Nominating Committee.  Mr. Martin Baumann, who had been appointed to become Chair of the IAASB on January 1, 2019, has decided not to assume the post for personal reasons.

“I am disappointed that unforeseen personal circumstances will prevent me from taking on this important role,” said Martin Baumann. “I remain impressed with the public interest work that the IAASB has already achieved and continue to see remarkable opportunities for the future.”

The Interim Nominating Committee, which was formed by the Monitoring Group in February 2018 to conduct the process for the next IAASB Chair, will again follow an open, timely and transparent process to select the most suitable candidate to chair the IAASB for a 2019-2021 term.

Prof. Arnold Schilder, whose term as IAASB Chairman is scheduled to conclude at end of 2018, has agreed to stay on through early 2019, as necessary, to ensure a smooth transition to a new Chair.

"While we are disappointed that Mr. Baumann cannot take on the important role to lead the IAASB during this crucial period, we wish him our best in the future,” said Gerben Everts, Chair of the Monitoring Group. “We are pleased that Prof. Schilder has agreed to extend his service until a new Chair is found, and have asked the Interim Nominating Committee to restart this important search.”

“This is a crucial inflection point for high-quality International audit standard setting,” said Rachel Grimes, IFAC President. “It is disappointing that Marty is unable to assume the position, but we are confident that the Interim Nominating Committee will find a similarly well-suited, high-caliber candidate to lead the IAASB into the future.”

For more information about the work of the IAASB, visit www.iaasb.org.

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.