Global standards: the International Federation of Accountants' mission is to strengthen the global profession, but how does it do this? Martin Nimmo gives some facts about IFAC.
| Author | Nimmo, Martin |
| Position | International Federation of Accountants |
If you think the International Federation of Accountants (IFAC) is "just another minor accountancy body", think again. It has 163 member bodies in 119 countries, representing more than 2.5 million accountants. IFAC is big, and it is the accountant's ultimate arbiter on professional standards.
As an IFAC founder member, CIMA is well represented in its governance structure. Charles Tilley, the institute's chief executive, joined its board in 2004. He is also a member of IFAC's regulatory monitoring group and its strategy and planning group. And Bill Connell, who chairs CIMA's international committee, is chairman of IFAC's public accountants in business (PAIB) committee.
The federation's main activities are:
* Setting standards and giving guidance.
* Aiding co-operation among member bodies by working with them to ensure the competence and integrity of accountants worldwide.
* Commenting on public policy issues in accounting and auditing.
In 2003 IFAC's council approved reforms, including oversight of the standard-setting process. It aimed to restore public confidence in financial reporting and to increase confidence that its activities would lead to high standards in auditing and assurance.
IFAC is also involved in setting standards via the International Auditing and Assurance Standards Board (IAASB) and through its education and ethics committees. Its public-sector committee is subject to an independent review process, in conjunction with the World Bank and other parties with an interest in governmental financial reporting. Its international standards on auditing are the basis of auditing standards in over 70 countries. The public interest oversight board oversees audit standards; independence and other ethical standards for auditors; audit quality control; and assurance standards. It will also oversee the federation's proposed compliance programme.
The PAIB committee is developing a web-based resource to collate information from members and other bodies. The committee addresses issues ranging from narrative reporting and corporate governance to professional ethics and internal control. It's involved in governance projects including:
* Enterprise governance. It produced a report jointly with CIMA in 2004 highlighting the need for companies to balance and link conformance and performance.
* A corporate code of ethical conduct. This will result in a booklet on developing a code.
IFAC's statements of membership obligations (SMOs) require member...
To continue reading
Request your trialCOPYRIGHT GALE, Cengage Learning. All rights reserved.
