Transcript INTERNATIONAL FEDERATION OF ACCOUNTANTS
International Federation of Accountants
IFAC SMP Committee Strategic and Operational Plan 2009-2012
Paul Thompson, Senior Technical Manager
IFAC SMP Forum 2008 Abuja, Nigeria, October 13, 2008
Content
• • • • • •
IFAC Strategic Plan 2009-2012
SMP Committee Critical Issues Input to Standard Setting Provision of Practical Support How Can You Get Involved?
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
•
Canada
•
USA
IFAC SMP Committee
Overview •
Finland
•
Germany
•
Italy
•
Malta
•
Spain
•
Turkey
•
UK
•
Israel
•
Nigeria
•
Tunisia
•
China
•
Hong Kong SAR
•
India
•
Malaysia
•
Brazil
Chair – Sylvie Voghel (Canada) 18 members Resources – one full-time senior technical manager Budget of US$ 475k (2008)
IFAC SMP Committee
Purpose and Constituents • Purpose:
“….to identify and represent the needs of the constituents and, where applicable, to give consideration to relevant issues pertaining to SMEs/SMPs.”
• Constituents:
“…SMPs who provide accounting and assurance services principally but not exclusively to clients who are small and medium enterprises (SMEs). In so far as they provide services to SMEs other professional accountants are included as constituents.”
Critical Issues
• • • • • • • • Limited awareness we exist let alone what we do!
Definition of SMPs – large firm in small country?
Impact of risk and redrafted ISAs on SME audit Some calls for differential auditing standards Trend towards exempting SMEs from audit – loss of valuable revenue stream & need to diversify Complexity of regulation is driving consolidation SMPs lack recognizable brand… ….but highly respected source of business support
IFAC SMP Committee
SMP Committee Strategic and Operational Plan 2009 2012
Four main issues facing SMPs (& SMEs): 1.
2.
3.
4.
Relevance & proportionality of international standards to SME/SMP
Capacity of SMP/SME to efficiently implement these standards Ability of SMPs to remain competitive & client-focused Ability of SMPs to proficiently operate & manage their practices
IFAC SMP Committee
SMP Committee Strategic and Operational Plan 2009 2012
• Two-pronged approach to helping SMPs (& SMEs) tackle these issues: 1.
Helping to shape form & content of international standards
through direct input to standard-setting (
Session 3
) 2.
Providing practical support to SMPs
through, for example, provision of implementation materials & web based information resources/tools (
Session 4
)
Input to Standard Setting
IAASB/IESBA • • • Comments on draft material & advocates at high level – – – – – SMP Committee welcomes IAASB/IESBA plans to: Impact assessment of proposed future changes Implementation effectiveness review Stability in standards/Code Increased focus on implementation assistance Alternative assurance for SMEs Need to get more SMPs/SMEs involved
• •
Input to Standard Setting
IASB Support
IFRS for Private Entities
(formerly IFRS for SMEs) project – – Assisting IASB find optimal solution: Encouraging SME/SMP participation in debate IFAC comment letter (SMP Committee led drafting): – – More simplification required Standard needs to be truly standalone – – Micro-Entity Financial Reporting Research Project: – Proposed standard (ED) much too complex for micro-entities Promote IASCF’s ‘train the trainer’ initiative
Provision of Practical Support
Implementation Materials - Overview • • • Vision – develop and facilitate development of range of high quality materials at low (nil) cost to end users IFAC to develop material only in specific instances Focus is on high level implementation guides
Provision of Practical Support
Implementation Materials - Guides • • • ISA Guide to help practitioners efficiently, effectively and economically apply ISAs to SME audits (Q4 2007: Q4 2009) • Quality Control Guide – to help SMPs operate a QC system in compliance with ISQC 1 (Q1 2009) Practice Management Guide – to help SMPs proficiently operate and manage their practice (Q4 2009) IESBA Implementation Materials for SMPs – to help SMPs apply independence section of Code of Ethics (2009)
Provision of Practical Support
Implementation Materials – Guides • • Member bodies free to use materials as is, adapt, translate, reproduce Guides intended to be ‘platform’ product from which derivative products (e.g., training material, forms, software) can be logically developed • IFAC
facilitating
development & dissemination, by member bodies and others, of high quality derivatives at reasonable cost to end users
Provision of Practical Support
Implementation Materials - Future • Possible future developments: – Develop ‘train the trainer’ & other CPD materials based on core content of guides – Certification of products asserting compliance with IFAC standards/guidance – IFAC and/or member body branded online professional education center (offering online courses) – Guidance on how SMPs can support SMEs – to profile role of SMP & signal business opportunities
Provision of Practical Support
Web-based Resources – International Center for SMPs • See http://www.ifac.org/SMP/ for: – IFACnet portal – News – Resources (relevant links, free publications, discussion board, etc.); • Possible future developments: – Global firm directory – Online networking between SMPs (& SMEs)
Provision of Practical Support
Web-based Resources - IFACnet • • See http://www.ifacnet.com
Customized web search engine providing access to resources of IFAC, its member bodies, and others • Possible future developments: – Menu of key search terms – Improved language capability
How Can You Get Involved?
• • • • • Effective communication is
critical
to SMP Committee achieving its strategic objectives Visit our website and sign up for our eNews Raise awareness of our activities: – To other accountancy bodies; – To other SMPs and SMEs;
and
– To others – students, donor agencies, regulators etc Help promote and disseminate our project output Provide feedback on our project output