Transcript INTERNATIONAL FEDERATION OF ACCOUNTANTS

International Federation of Accountants
Implementation Support
Bernard Scicluna, IFAC SMP Committee Member,
Malta Institute of Accountants
IFAC SMP Forum 2008
Abuja, Nigeria, October 13, 2008
IFAC and SMP Committee
Strategic Plans 2009 - 2012
The ‘ISA Guide’
ISQC 1
The ‘QC Guide’
IFAC SMP Committee
SMP Committee Strategic & Operational Plan 2009-2012
• Purpose: “….to identify and represent the needs of the
constituents and, where applicable, to give consideration to
relevant issues pertaining to SMEs / SMPs.”
• Two-pronged approach to helping SMPs (& SMEs)
deal with standards overload:
– Helping to shape form & content of international
standards through direct input to standard-setting
– Providing practical support to SMPs through, for
example, provision of implementation materials
Provision of Implementation Support
Guide to Using ISAs in the Audits of SMEs (ISA Guide)
• Objective - to help practitioners efficiently, effectively,
and economically apply ISAs to SME audits
– Published December 2007; Approx. 400 pages
– Developed by Canadian Institute of Chartered
Accountants (CICA)
– IFAC quality review
• IFAC has full copyright
• Member bodies & others can use as is or adapt
– PDF downloadable free at http://www.ifac.org/Store/
– CD version available on request
Provision of Implementation Support
• Vision – facilitate development of range of high
quality materials at reasonable cost (nil?) to end
users
• SMPC to develop itself only in specific
instances
– Quality Control Guide – to help SMPs operate
a QC system in compliance with ISQC 1 (Q1
2009)
– IESBA Implementation Materials for SMPs
– to help SMPs apply independence section of
Code of Ethics (2009?)
IFAC Strategic Plan 2009 - 2012
Four strategic themes are:
1. Be recognized as the international setter standard in the areas of
auditing and assurance, education, ethics and governmental financial
reporting.
2. Actively support the adoption of, and assist in, the
implementation of international standards
3. Continually enhance the relevance of the profession
4. Be the international voice of the accountancy profession
ISA Guide
Attributes
• Non-authoritative implementation guide
≠ SME audit standard
• Includes all ISA requirements
≠ Substitute for ISAs
• IFAC SMP Committee publication
≠ Approved/endorsed by IAASB
• Integrated case study and some practice aids
≠ Full set of audit programs/forms/checklists
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Derivative Products
• Training material, forms, checklists, software etc.
• Intended to be ‘platform’ product from which
derivative products can be logically developed
• IFAC to facilitate development & dissemination of
high quality derivatives at reasonable cost to users
The ‘ISA Guide’
Audit Methodology - The Three Rs
Dephta Furniture Inc.
Suraj Dephta
Managing Director
Kamera Dephta
Suraj’s Assistant
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John Rabeer
IT
Arjan Sing
Sales
Jawab Kassab
Finance
IT Staff
(vacant)
Sales Staff
Karla Winston
Jawab’s Assistant
Business started by father
Son Managing Director
Son Production Manager
19 staff
Largely family run
Dameer Dephta
Production
Production
Supervisor
Inventory
Production Staff
Quality Control
Manager
Use of graphics, tables, consider points
Sample Chapter Layout
ISA Guide – Popularity & Feedback
• High demand - 14,000+ downloads since launch
– Second most downloaded IFAC publication
after the IFAC Handbook
• Several translations & reproductions in progress –
e.g. Chinese, Spanish, Polish, Finnish, Lithuanian,
Czech, Romanian
• Indicates a very real need for a product such as this
• Formal request for feedback in Guide
– Too early to gauge usefulness
• The Canadian Institute of Chartered Accountants (CICA)
has developed pack of International Audit Guide checklists
and forms for CAD 125 (approx. USD 125)
http://www.knotia.ca/store/iagforms
• The Institute of Chartered Accountants in Australia (ICAA)
has adapted the ISA Guide & supplemented it with a toolkit of
checklists and forms plus a road-show of training sessions
• ICAA negotiating to include as core auditing text at
Australian universities
http://www.charteredaccountants.com.au/A121542159
APB Practice Note 26 – Guidance on Smaller
Entity Audit Documentation, Sep 07
http://apb.frcpublications.com/
Your Feedback
• Commitment to continuous improvement
– First CICA Update – Dec 2009 (including Clarity) to
accompany 2010 IFAC Handbook
– Second CICA Update – Dec 2010
to accompany 2011 IFAC Handbook
GUIDE TO USING INTERNATIONAL STANDARDS ON AUDITING
IN THE AUDITS OF SMALL- AND MEDIUM-SIZED ENTITIES
Request for Comments
This is the first version of the Guide. While we consider this Guide to be
of high quality and useful in its present form, like any first edition it can
be improved. Hence, we are committed to updating this Guide on a
regular basis so as to ensure it reflects current standards and is as useful
as possible.
• Your own & your Institutes’ feedback would be much
appreciated
ISQC 1
The ‘QC Guide’
QC Guide
Overview
• Objective – to help SMPs efficiently operate a QC system in
compliance with International Standard on Quality Control
(ISQC) 1 (as redrafted under Clarity project)
• Publication expected Q1 2009: annual updates
• Being developed by CGA-Canada with IFAC quality
review
• IFAC has full copyright
• Available for free – downloadable PDF or CD Rom
• Member bodies & others free to use as is or adapt
(permission)
QC Guide
Table of Contents
• Main chapters:
– General Policy Statement
– Leadership Responsibilities
(“Tone from the Top”)
– Ethical requirements
– Acceptance and continuance
of client relationships /
engagements
– Human resources
– Engagement performance
– Monitoring
– Documentation
QC Guide
Table of Contents
• Other features:
– Two sample QC Manuals
• Sole practitioner
• 2-5 partner firm
– Case study
– Illustrations
– Some checklists / forms
Future Plans
• Guidance to MBs on how to adapt / localize and
otherwise make use of guides
• Develop ‘train the trainer’ & other CPD materials
based on core content of guides
• Certification of products asserting compliance with
IFAC standards/guidance
IFAC SMP Committee
Provision of Implementation Support
Group A will discuss this topic further