Building For Sustainable Growth– (re)Defining AccountancyProfession in the Age of Twitter  Szymon Radziszewicz  Senior Tec...
Think ProfessionConventional Approach                        Page 2 | Confidential and Proprietary Information
Think ProfessionLive Core Values – Think Different                                     Page 3 | Confidential and Proprieta...
Today’s PresentationOutline • The context • Regulation of the profession – the global perspective • Role of the national p...
5000 Years Ago                 Page 5 | Confidential and Proprietary Information
500 Years Ago                Page 6 | Confidential and Proprietary Information
84 Years Ago               Page 7 | Confidential and Proprietary Information
5 Years Ago              Page 8 | Confidential and Proprietary Information
Last Year            Why Greece wont go away            By Laurence Knight Business reporter, BBC News            6 Februa...
What Now?            Page 10 | Confidential and Proprietary Information
ComplexityGlobal Landscape Today • Pressures on the broader financial architecture      – Economy in recovery      – Incre...
ClarityIFAC Perspective on Regulation • Global regulatory convergence          – IFAC’s position; importance of high-quali...
Finding the BalanceRegulation of the Accountancy Profession                       • Regulation of individual              ...
Role of the ProfessionStrong Accountancy Profession = Inclusive andSustainable Growth                            •   Maint...
Role of the ProfessionThe Goal – Provide Quality Information   • Contribute to economic stability and growth   • Enhance e...
Role of the ProfessionBe the Voice • Educate stakeholders • Advocate the role of the profession • Raise awareness      – N...
Role of the ProfessionProvide Support • Education and training • If not the responsible body      •   Advocacy for interna...
Role of the ProfessionLeadership Through Action • Commitment to the public interest • Adherence to the values of integrity...
IFACGlobal Profession                    Page 19 | Confidential and Proprietary Information
Ultimate ObjectiveIFAC’s Vision     For the global accountancy profession to be     recognized as a valued leader in the  ...
Overview of IFAC Structure                                                    IFAC                                        ...
Oversight of IFAC PIACs                                                    IFAC                                           ...
IFAC Oversight and Consultation                                                                                           ...
IFAC SMOs – International Soft LawWhat are the SMOs                                     • In accordance with IFAC         ...
What are SMOsPower to Grow                • Clear benchmarks for                  PAOs                • Enable high qualit...
What are SMOsBuilding Blocks                          SMO 4: Ethics                SMO 7:        SMO 3:        SMO 5:     ...
2004 vs. 2012 SMOsWhy Revise?                     • Serve the public interest                     • Drive adoption and    ...
SMOsKey Concepts               •   Shall = requirement               •   Applicability Framework               •   Comply ...
Key ConceptsUnderstanding Diversity                                                         Different     Regulatory      ...
SMO Applicability Framework                 Degree of responsibility for an SMO area                                      ...
Revised SMOsStructure of the SMOs                            Obligation                              Scope                ...
SMOs 2, 3, 4, 5, 7Adoption     Decision                            Action                           to make               ...
SMOs 2, 3, 4, 5, 7Different Approaches – One Goal                     Adoption                          Transposition     ...
SMOs 2, 3, 4, 5, 7ImplementationDissemination         Implementation of standards            guidanceEducation and        ...
SMOs 2, 3, 4, 5, 7Translation                     • Assess priorities and                       challenges                ...
SMO 1Quality Assurance   Extension of the scope to ALL audits of financial   statements (priority for PIE audits)   Consid...
Revised SMOsWhat PAOs Need To Do                       • Review and understand                         revisions          ...
It All Fits TogetherStrong Global Accountancy Profession                                       Page 38 | Confidential and ...
Quality AssuranceWhy Quality Assurance?                      External                 Confidence    Internal              ...
Quality AssuranceBenefits • Protects public          • Improves the standard   interest                   of audit work • ...
Quality AssuranceScope • Consider efficiency & don’t reinvent the wheel • ALL audits of financial statements      – But pr...
Quality AssuranceQuality Control Standards & Guidance • ISQC 1 • ISA 220 • Guidance      –   Awareness building      –   M...
Quality AssuranceDesign • Subject      – Firm or engagement partner • Criteria      – Suitable      – Respectful of and al...
Quality AssuranceReview Cycle •   Cycle approach •   Risk-based approach •   Mixed approach •   Other considerations      ...
Quality AssuranceReview Team • Procedures • Documentation • Quality      –   Resources      –   Skills & competence      –...
Quality AssuranceReporting & Corrective Actions • Conclusion      – Is the firm’s system designed to meet requirements?   ...
Quality AssurancePublic Oversight Considerations • IFIAR principles • Cooperate closely & share information and expertise ...
Quality AssuranceReview of Implementation and Effectiveness                                  Consider                    I...
Quality AssuranceExamples from Around the World •   Rwanda •   Malta •   Bahamas •   Poland                               ...
Examples from Around the WorldRwanda                                 The Programme is based on the principle Quality in th...
Examples from Around the WorldMalta                                 Page 51 | Confidential and Proprietary Information
Page 52 | Confidential and Proprietary Information
Quality AssuranceFeedback from Firms • I would also like to take this opportunity to thank both of you for   the professio...
Quality AssuranceFeedback from Firms cont. • We would like to thank you for your very helpful and   constructive comments ...
How IFAC assistsFree Tools and Resources                           Page 55 | Confidential and Proprietary Information
How IFAC Assists?Free Tools and Resources • www.ifac.org/SMP • web.ifac.org/clarity-center/index • www.ifac.org/Compliance...
THANK YOUwww.ifac.org/ComplianceProgram          www.ifac.org                           Page 57 | Confidential and Proprie...
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Building for Sustainable Growth. (re)Defining the Accountancy Profession in the Age of Twitter

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  • Solid craftsmanship based on education, experience, examination, values
  • Flexibility for adaptation is one of the best sustainable characteristics of a building. Besides this the award winning Sky Village project for Copenhagen building will also integrate the latest technologies according to the progressive Danish environmental standards.
  • The annual balance sheet of a Sumerian state-owned farm, drawn up by the scribe responsible for artisans: detailed account of materials and workdays for a basketry workshop.
  • The timeswe live in are no doubt VERY interesting…
  • But being part of the accountancy profession we have the tools to bring clarity to today’s complex world
  • Policy Position Paper 1 emphasizes best practicein the design and implementation of regulation. An understanding of the characteristics and operations of the market is essential (market size, business diversity, economic factors, consumers, etc.). Care needs to be taken that the nature and characteristics of the operation of the market are well understood; otherwise, the regulation may not achieve its purpose. To be effective, IFAC believes that regulation should reflect six qualities: (i) transparent; (ii) proportionate; (iii) targeted; (iv) non-discriminatory; (v) implemented fairly and consistently; and (vi) subject to regular review.Regulation should aim to ensure that the quality of services provided by the profession responds effectively and efficiently to the demands of the economy and society.It must be designed to take into consideration the shocks and stresses that may occur in different economic conditions.
  • Global organization for the accountancy professionComprised of 173 Members and Associates in 129 countriesMembers and Associates are Professional Accountancy OrganizationsRepresents 2,5 millions accountants in public practice, business, government, and academiaThe color may be uniform but there are different ways to effectively organize the profession, different legislative frameworks, different stakeholder expectations and capacity Green – membersYellow – associates onlyGrey – no IFAC representation
  • Let’s start by looking at what are the SMOs. They are embedded in the IFAC Constitution and in the first instance apply to all IFAC members and associates. In a sense they are international “soft law” but for IFAC members and associates SMOs
  • But more broadly, the SMOs are globally recognized as a clear benchmark for strong accountancy profession.
  • The 7 Statements of Membership Obligations (SMOs) serve as the basis for the IFAC Member Body Compliance Program and provide clear Framework for strong and high quality Professional Accountancy Organizations (PAOs). The SMOs are also globally recognized as the benchmark for PAOs as they work, in the public interest, to develop, continuously improve and monitor high quality professional accountants. Of course for the PAOs to be strong they need sound governance framework. While there is no SMO on Governance IFAC has some guidance and soon we will issue a refreshed version on it.As you see,we can think about the SMOs in terms of building blocks for constructing strong PAOs. First, solid PAO needs a good base of education; then come technical standards, IFRSs, ISAs, public sector accounting standards, but the whole house is kept together by a cornerstone of Ethics. All of us are simply human and, therefore, require guidance on what is right or wrong. But also because we are human, we need solid systems of external quality assurance and if wrongdoing is reported or suspected – an unbiased investigation and disciplinary system.
  • So, why did IFAC decide to revise the SMOs in 2012? Under the oversight of the Compliance Advisory Panel and PIOB.Serve the public interest: to reflect the context of developments in international standards and today’s regulatory environment, to also reflect the expectation of the accountancy profession held by the public and key stakeholders.Clarify the SMOs: to ensure that the SMOs continue to be an effective framework for credible and high quality PAOs.To further drive adoption and implementation as clearly mandated in the IFAC strategy Changes were made to the structure of the SMOs to (A) ease the understanding of the SMOs, and (B) to add new requirements to reflect current international best practice.Presentation will cover a description of both elements of the revised SMOs.
  • Let’s look at the next piece of the puzzle and consider what are the key concepts of the SMOs.Use of “shall” to identify requirementsUnderstanding diversity – Applicability FrameworkComply or explain - when PAO has responsibilityBest endeavors – when PAO has no responsibilityIFAC Member Body Compliance Program
  • Probably one of the most important concepts underlying the SMOs is appreciation and understanding that PAOs are all very different.
  • What you see on this slide is the clarified applicability framework. It is included at the very beginning of each SMO to guide PAOs what actions they have to take to satisfy SMO requirements depending on how much responsibility they have for each of the seven SMO areas.For example, if you have direct responsibility for setting auditing standards, then to comply with the SMO 3, you have to adopt and implement the ISAs and if something prevents you from doing it, you have to provide satisfactory explanation.On the other hand, if you have no responsibility for setting accounting standards for the public sector, then to comply with SMO 5, you should use your best endeavors to promote the IPSASs to the government and offer your assistance for example to organize training for government accountants.Now on to the main requirements.
  • To further help PAOs in understanding the SMOs, we have improved and streamlined the structure of the SMOs.Each SMOs starts with clear reference to the obligations enshrined in the IFAC Constitution.It then identifies the scope of the SMOAnd proceeds to set out the applicability framework that we have just discussedAfter setting the scene, each SMO sets out relevant requirements and application guidanceFinally, each SMO concludes by indicating how IFAC approaches the assessment of each member and associate compliance with the SMO
  • Adoption consists of two key steps: (i) the decision that the international standard is appropriate for the jurisdiction, and (ii) the actions necessary to make that decision effective.
  • Depending on legal and regulatory framework and other jurisdiction-specific factors, adoption can take many different forms, including: requiring use of the international standards, as set by law or regulation; incorporating or transposing international standards into existing national requirements;establishing a convergence process, bringing together national and international standards to minimize and/or eliminate differences; oreliminating major departures from international standards through harmonization of national requirements with international standards.
  • Implementation includes a range of activities that ultimately raise awareness of the standards and build understanding regarding their use in practice by individual practitioners. In addition to promoting and disseminating the standards, actions supporting implementation include design and delivery of related education, training, and practical guidance materials.
  • Translation can also be a core element of effective implementation. In jurisdictions where English is not the official language, the responsible entity should consider their priorities and determine the impact of translation on proper adoption and implementation. Where it is deemed relevant, a process for timely, accurate, and complete translation should be established.
  • To assist you in understanding the revisions and your considerations on what changes need to be addressed, we have prepared a range of tools that will be made available on the IFAC website after the Council ratifies the SMOs. The main tool is the Revised SMO Comparison Guide that includes: a) Summaries of major revisions to each SMO as compared to the previous SMOs issued in 2004,b) Full text of the revised SMOs with: - Paragraph references mapping it to the previous version of the SMOs Notes indicating the nature and the objective of the changes, if any, made to the paragraph.In addition, to the comparison guide, and if you will want to know more detailed information, we have also prepared and will make available:A document summarizing significant issues raised in the exposure process and conclusions reached by the CAPDetailed mark-up document from original to revised SMOs.And, of course, as always you can reach out to the IFAC staff in case you will have any further questions or required some additional clarifications.We also think about organizing learning workshops alongside events organized in the regions. We want to make use of webinar technology to organize virtual learning opportunities. And last, but not least, we want to leverage our relationships at global, regional and national level to progress our vision of global adoption and implementation of international standards.
  • Before we will start the more exciting part of this afternoon and have more hands-on discussion about what the SMOs mean for each of you, I would like to finish my remarks by emphasizing that the Vision of the Compliance Program is one of encouragement and improvement. The Program strive to influence agendas and actions towards global adoption and implementation of the international standards, but we can only do that by partnering with you as IFAC members and associates. Since 2004, when the program was established, you – IFAC Member Bodies – have taken the lead and continue to demonstrate the commitment to building strong and high quality professionals. We are confident, that with your ongoing commitment and the support of our partners, we will continue on the road to building strong and high quality PAOs around the world for the benefit of public interest and sound and sustainable economies.
  • Enhances reputationReduces risk of errors and omissionsReflected in enhanced service to clientsGenerates referrals for new businessIncreases profitsMeets regulatory requirements
  • Improves the standard of audit workEnhances reputation of auditors and PICPAEnables PICPA to discharge its membership obligations to IFAC (SMO 1 – Quality Assurance) Protects the public interestEncourages inward investment by increasing confidence in audited financial statements
  • Undertaken in accordance with IFAC SMO 1Covers compliance with International Standard on Quality Control No.1 (ISQC1) and International Auditing Standards (ISAs) ISQC 1: Firm-level review of its quality controls and proceduresISAs: Engagement reviews of each audit principalEngagement reviews will be undertaken at the same time as firm level reviews
  • Building for Sustainable Growth. (re)Defining the Accountancy Profession in the Age of Twitter

    1. 1. Building For Sustainable Growth– (re)Defining AccountancyProfession in the Age of Twitter Szymon Radziszewicz Senior Technical Manager Member Body Development Team Leader PICPA Seminar Manila, Philippines April 11, 2013 Page 1 | Confidential and Proprietary Information
    2. 2. Think ProfessionConventional Approach Page 2 | Confidential and Proprietary Information
    3. 3. Think ProfessionLive Core Values – Think Different Page 3 | Confidential and Proprietary Information
    4. 4. Today’s PresentationOutline • The context • Regulation of the profession – the global perspective • Role of the national profession – Commitment to quality – Implementation support & thought leadership • What is IFAC & its SMOs • Adoption & Implementation of international standards • Quality Assurance – concept & examples • How IFAC assists Page 4 | Confidential and Proprietary Information
    5. 5. 5000 Years Ago Page 5 | Confidential and Proprietary Information
    6. 6. 500 Years Ago Page 6 | Confidential and Proprietary Information
    7. 7. 84 Years Ago Page 7 | Confidential and Proprietary Information
    8. 8. 5 Years Ago Page 8 | Confidential and Proprietary Information
    9. 9. Last Year Why Greece wont go away By Laurence Knight Business reporter, BBC News 6 February 2012 Page 9 | Confidential and Proprietary Information
    10. 10. What Now? Page 10 | Confidential and Proprietary Information
    11. 11. ComplexityGlobal Landscape Today • Pressures on the broader financial architecture – Economy in recovery – Increased regulatory proposals resulting from global financial crisis – Sovereign debt crisis • Globalization – Information, capital, accountants moving across borders – Integrated reporting and long term sustainability • Diverse and segmented – Large multinationals/networks and smaller local SMEs and SMPs – Accountants in diverse roles: auditors, preparers, advisors, strategic business leaders (CFO/CEO/COO) • Twitter generation – 140 Page 11 | Confidential and Proprietary Information
    12. 12. ClarityIFAC Perspective on Regulation • Global regulatory convergence – IFAC’s position; importance of high-quality globally accepted standards and consistent adoption, implementation and oversight • Balancing shared regulation – Policy Position Paper (PPP) 1 and the role of professional accountancy organizations • Statements of Membership Obligations (SMOs) – A framework for credible and high quality professional accountancy organizations (PAOs) Page 12 | Confidential and Proprietary Information
    13. 13. Finding the BalanceRegulation of the Accountancy Profession • Regulation of individual professional accountants is primarily conducted at a national level, with professional accountancy organizations playing an important role in working with governments to ensure that such regulation is effective, efficient, and in the public interest • Shared approach to regulation – roles for government and PAOs Page 13 | Confidential and Proprietary Information
    14. 14. Role of the ProfessionStrong Accountancy Profession = Inclusive andSustainable Growth • Maintain core values • Think different • Push boundaries • Commit to public interest • Create, contribute, give! Page 14 | Confidential and Proprietary Information
    15. 15. Role of the ProfessionThe Goal – Provide Quality Information • Contribute to economic stability and growth • Enhance efficiency and accountability of businesses • Promote and support governmental transparency and accountability • Be a key player in (re)building confidence in financial markets Page 15 | Confidential and Proprietary Information
    16. 16. Role of the ProfessionBe the Voice • Educate stakeholders • Advocate the role of the profession • Raise awareness – Need for accountants and auditors – Global regulatory convergence – Public & Private Sector • Input into development of legislation and regulation • Support to those in charge Page 16 | Confidential and Proprietary Information
    17. 17. Role of the ProfessionProvide Support • Education and training • If not the responsible body • Advocacy for international best practice • Input into the development of standards • Support implementation of standards • Promote and monitor adherence to ethics and independence requirements Page 17 | Confidential and Proprietary Information
    18. 18. Role of the ProfessionLeadership Through Action • Commitment to the public interest • Adherence to the values of integrity, transparency and expertise • Commitment to follow high standards • Ongoing education • Oversight of its public interest activities Page 18 | Confidential and Proprietary Information
    19. 19. IFACGlobal Profession Page 19 | Confidential and Proprietary Information
    20. 20. Ultimate ObjectiveIFAC’s Vision For the global accountancy profession to be recognized as a valued leader in the development of strong and sustainable organizations, financial markets and economies Page 20 | Confidential and Proprietary Information
    21. 21. Overview of IFAC Structure IFAC COUNCIL Governance and Audit Nominating Committee Committee IFAC IFAC Regulatory BOARD Liaison Group Planning and Finance Committee Forum of Firms Professional Professional Small and International International International International Transnational Accountancy Accountants Medium Compliance Auditing and Accounting Ethics Public Sector Auditors Organization Advisory Panel Assurance Education Standards Accounting Committee in Business Practices Development Committee Committee Standards Standards Board for Standards Committee Board Board Accountants Board KEY ACCOUNTABILITY Page 21 | Confidential and Proprietary Information
    22. 22. Oversight of IFAC PIACs IFAC COUNCIL Governance Public Nominating Interest and Audit Oversight Committee Committee Board IFAC IFAC Regulatory BOARD Liaison Group Planning and Finance Committee Forum of Firms Professional Professional Small and International International International International Transnational Accountancy Accountants Medium Compliance Auditing and Accounting Ethics Public Sector Auditors Organization Advisory Panel Assurance Education Standards Accounting Committee in Business Practices Development Committee Committee Standards Standards Board for Standards Committee Board Board Accountants Board KEY ACCOUNTABILITY OVERSIGHT Page 22 | Confidential and Proprietary Information
    23. 23. IFAC Oversight and Consultation Monitoring IFAC Group COUNCIL Governance Public and Audit Nominating Interest Committee Oversight Committee Board IFAC IFAC Regulatory BOARD Liaison Group Planning and Finance Committee Forum Consultative Consultative Consultative of Firms Advisory Advisory Advisory Group Group Group Professional Professional Small and International International International International Transnational Accountancy Accountants Medium Compliance Auditing and Accounting Ethics Public Sector Auditors Organization Advisory Panel Assurance Education Standards Accounting Committee in Business Practices Development Committee Committee Standards Standards Board for Standards Committee Board Board Accountants Board KEY ACCOUNTABILITY OVERSIGHT CONSULTATION/ADVICE Page 23 | Confidential and Proprietary Information
    24. 24. IFAC SMOs – International Soft LawWhat are the SMOs • In accordance with IFAC Constitution, IFAC members and associates are required to comply with the SMOs • Member and associates have to identify and take actions to fulfill the requirements set out in the SMOs Page 24 | Confidential and Proprietary Information
    25. 25. What are SMOsPower to Grow • Clear benchmarks for PAOs • Enable high quality performance by professional accountants • Encourage continuous improvement • Drive sustainable development of the accountancy profession Page 25 | Confidential and Proprietary Information
    26. 26. What are SMOsBuilding Blocks SMO 4: Ethics SMO 7: SMO 3: SMO 5: IFRS ISA IPSAS SMO 2: Education Page 26 | Confidential and Proprietary Information
    27. 27. 2004 vs. 2012 SMOsWhy Revise? • Serve the public interest • Drive adoption and implementation of international standards • Clarify • Reflect international good practice • Increase effectiveness of IFAC Compliance Program Page 27 | Confidential and Proprietary Information
    28. 28. SMOsKey Concepts • Shall = requirement • Applicability Framework • Comply or explain • Best endeavors • Compliance Program Page 28 | Confidential and Proprietary Information
    29. 29. Key ConceptsUnderstanding Diversity Different Regulatory Sectors of degree of frameworks profession responsibility Page 29 | Confidential and Proprietary Information
    30. 30. SMO Applicability Framework Degree of responsibility for an SMO area No Direct Shared Responsibility For the elements for Use best endeavors to: Implement all the which Member Body requirements of the has direct a. Encourage those SMO responsibility follow responsible for the the approach for requirements to follow In exceptional situations "Direct" this SMO in departures are possible implementing them; if can be justified from AND the public interest AND perspective and need to For the elements for be documented which Member Body has no direct b. Assist in the responsibility follow implementation where the approach for appropriate "No Responsibility " Page 30 | Confidential and Proprietary Information
    31. 31. Revised SMOsStructure of the SMOs Obligation Scope Applicability Framework Requirements and Application Guidance IFAC Compliance Assessment Page 31 | Confidential and Proprietary Information
    32. 32. SMOs 2, 3, 4, 5, 7Adoption Decision Action to make the decision effective Page 32 | Confidential and Proprietary Information
    33. 33. SMOs 2, 3, 4, 5, 7Different Approaches – One Goal Adoption Transposition Page 33 | Confidential and Proprietary Information
    34. 34. SMOs 2, 3, 4, 5, 7ImplementationDissemination Implementation of standards guidanceEducation and Raising training awareness Page 34 | Confidential and Proprietary Information
    35. 35. SMOs 2, 3, 4, 5, 7Translation • Assess priorities and challenges • Is there a need of translation to ensure proper adoption and implementation • Process for timely, accurate and complete translation Page 35 | Confidential and Proprietary Information
    36. 36. SMO 1Quality Assurance Extension of the scope to ALL audits of financial statements (priority for PIE audits) Consider QA performed by another authority to avoid overlap Ensure sufficient resources Refer to I&D if no corrective action Consideration of public oversight Review of implementation and effectiveness Page 36 | Confidential and Proprietary Information
    37. 37. Revised SMOsWhat PAOs Need To Do • Review and understand revisions • Consider actions necessary to address revisions • Plan and execute actions • Cooperate within RO/AG • Reflect actions in the next update of the SMO Action Plan Page 37 | Confidential and Proprietary Information
    38. 38. It All Fits TogetherStrong Global Accountancy Profession Page 38 | Confidential and Proprietary Information
    39. 39. Quality AssuranceWhy Quality Assurance? External Confidence Internal Quality Quality Credibility Assurance Controls Reputation Reviews Page 39 | Confidential and Proprietary Information
    40. 40. Quality AssuranceBenefits • Protects public • Improves the standard interest of audit work • Enhances reputation • Generates referrals for new business • Reduces risk of errors and omissions • Increases profits • Reflected in enhanced • Meets regulatory service to clients requirements Page 40 | Confidential and Proprietary Information
    41. 41. Quality AssuranceScope • Consider efficiency & don’t reinvent the wheel • ALL audits of financial statements – But priority to PIEs’ audits • Other services? • Mandatory or voluntary? • Criteria & risk factors Page 41 | Confidential and Proprietary Information
    42. 42. Quality AssuranceQuality Control Standards & Guidance • ISQC 1 • ISA 220 • Guidance – Awareness building – Manuals – CPD – Start small (voluntary programs) • Trust the market and play to the market Page 42 | Confidential and Proprietary Information
    43. 43. Quality AssuranceDesign • Subject – Firm or engagement partner • Criteria – Suitable – Respectful of and aligned with the national regulatory framework – What needs to be considered to conclude that the QC system is adequate and the firm/partner complies • Guidance – Awareness building – Manuals – CPD – Start small (voluntary programs) • Trust the market & play to the market Page 43 | Confidential and Proprietary Information
    44. 44. Quality AssuranceReview Cycle • Cycle approach • Risk-based approach • Mixed approach • Other considerations Page 44 | Confidential and Proprietary Information
    45. 45. Quality AssuranceReview Team • Procedures • Documentation • Quality – Resources – Skills & competence – Quality of team leader – Ethical requirements • Confidentiality Page 45 | Confidential and Proprietary Information
    46. 46. Quality AssuranceReporting & Corrective Actions • Conclusion – Is the firm’s system designed to meet requirements? – Is the partner subject to the system? – Does the firm/partner comply with internal QC system? • Reasons for conclusion • Recommendations for improvement • What if the review was unsatisfactory? Page 46 | Confidential and Proprietary Information
    47. 47. Quality AssurancePublic Oversight Considerations • IFIAR principles • Cooperate closely & share information and expertise • Consider how to contribute to the regulation of the profession • IFAC PPP 1, Regulation of the Accountancy Profession Page 47 | Confidential and Proprietary Information
    48. 48. Quality AssuranceReview of Implementation and Effectiveness Consider Improve Plan Review Execute Page 48 | Confidential and Proprietary Information
    49. 49. Quality AssuranceExamples from Around the World • Rwanda • Malta • Bahamas • Poland Page 49 | Confidential and Proprietary Information
    50. 50. Examples from Around the WorldRwanda The Programme is based on the principle Quality in the performance that a systematic monitoring and of Auditing Engagements educational process is the most effective by ICPAR members is the way to attain and maintain the envisaged goal of the Audit Quality quality of professional work throughout the Review Programme. profession. Thus, it depends on mutual trust and cooperation. The reviewed The Programme seeks to practice unit is expected to take achieve its goal through appropriate actions in response to education and remedial, deficiencies in either design of its corrective actions. This system of quality control, or its goal serves the public compliance with that system, or both. interest and, at the same These actions will be positive and time, enhances the remedial. Matters touching on the significance of ICPAR professional conduct of a member will be membership. investigated within the Disciplinary Process as provided for in the Laws of the Land. Page 50 | Confidential and Proprietary Information
    51. 51. Examples from Around the WorldMalta Page 51 | Confidential and Proprietary Information
    52. 52. Page 52 | Confidential and Proprietary Information
    53. 53. Quality AssuranceFeedback from Firms • I would also like to take this opportunity to thank both of you for the professional but friendly way you approached our visit and your practical findings which will enable us to focus on our weaknesses in the practice so that they can be rectified to bring all areas up to the required standard • In the meantime, we would like to thank you for the professional and courteous manner in which you carried out the review and for your honest and open approach. Your review has proved to be very constructive and has outlined valid improvements that need to be made in our quality control procedures Page 53 | Confidential and Proprietary Information
    54. 54. Quality AssuranceFeedback from Firms cont. • We would like to thank you for your very helpful and constructive comments during your visit which we found to be a very productive review and a useful process carried out in a supporting manner • It is very encouraging to see that the BICA are using monitoring compliance officers who are realistic and understanding in their approach and have good solid actual background practice experience and appreciate more fully the real life problems and difficulties facing practitioners Page 54 | Confidential and Proprietary Information
    55. 55. How IFAC assistsFree Tools and Resources Page 55 | Confidential and Proprietary Information
    56. 56. How IFAC Assists?Free Tools and Resources • www.ifac.org/SMP • web.ifac.org/clarity-center/index • www.ifac.org/ComplianceProgram • www.ifac.org/about-ifac/professional-accountancy- organization-development-committee • www.ifac.org/Ethics/Resources.php • www.ifac.org/Translations • www.ifac.org/issues-insights/public-policy-regulation Page 56 | Confidential and Proprietary Information
    57. 57. THANK YOUwww.ifac.org/ComplianceProgram www.ifac.org Page 57 | Confidential and Proprietary Information

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