The IFAC SMP Advisory Group (SMPAG) is pleased to respond to the IESBA Exposure Draft on Proposed Revisions to the Code Relating to the Definition of Engagement Team and Group Audits.
In an increasingly complex world with evolving reporting needs, a need for a set of high-quality requirements tailored for the audits of less complex entities has emerged
The SMPAG strongly supports the IAASB Exposure Draft to create a separate, standalone standard for audits of LCEs.
A fundamental tenant of IFAC’s vision about the information companies provide to investors and stakeholders is that reporting and disclosure should capture all relevant information about organizations. To be accountable, companies need to provide a clear and comprehensive picture of their organization’s ability to create sustainable value over time.
The SMPAG supports the IAASB’s current standard-setting projects underway. They believe the Audits of Less Complex Entities project should be a priority for the Board and welcome the significant progress that has been made and the forthcoming consultation on the draft standard. They also noted their preference on prioritization of 8 projects that the IAASB is considering.
IFAC welcomes the opportunity to comment on the OECD’s draft revisions to the Recommendation for Further Combating Bribery of Foreign Public Officials in International Business Transactions (Anti-Bribery Recommendation). IFAC supports the Anti-Bribery Recommendation and the OECD’s efforts to ensure that it is as effective as possible. IFAC looks forward to supporting the revised Anti-Bribery recommendation when finalized. With this in mind, we provide the following comments on the draft text, with particular reference to Section XXIII.
IFAC welcomes the opportunity to comment on the FATF’s review of Recommendation 24 relating to beneficial ownership transparency. IFAC—and the global accountancy profession that we represent—strongly supports the work of the FATF and others in advancing the fight against money laundering, terrorism financing and the proliferation of weapons of mass destruction.
We applaud the Commission’s leadership in prompting this important conversation. A building blocks approach provides the architecture for a global system that enables comprehensive corporate reporting for capital markets while also addressing country-specific requirements. As policymakers consider the best way forward for crafting an emerging global system for climate and other sustainability-related disclsures, support from the U.S.
Conforming and Consequential Amendments to the IAASB’s Other Standards as a Result of the New and Revised Quality Management Standards
The SMPAG supports the IAASB Exposure Draft to make necessary conforming and consequential amendments to address inconsistencies between the IAASB’s Other Standards and Framework with the new and revised QM standards.
Proposed Revisions to the Definitions of Listed Entity and Public Interest Entity in the IESBA Code
The IFAC SMP Advisory Group believes that the approach for a global PIE definition should be narrow, rather than broad. Otherwise the situation arises where PIEs at an international level are not PIEs under local legislation in several parts of the world and it leads to inconsistent practices. Whilst going beyond this may be necessary in a few jurisdictions and for certain cases (i.e., this would be determined in legislation), exclusions of entities or additions by individual firms would be far less appropriate from a stakeholder’s and public interest perspective.
IFAC is submitting this comment letter to accelerate the journey towards a coherent global system for reporting sustainability information.
In answer to the fundamental issues at stake—is there a need for a global set of internationally recognized sustainability reporting requirements and should the IFRS Foundation play a leading role through the establishment of a new sustainability standards board—IFAC believes, based on extensive stakeholder outreach, that the answer is a resounding “Yes.”
