this presentation deals with two big standard-setting bodies IFAC and ICAEW, their governance, their members, history, salary, syllabus, opportunities, auditing activities, and A CASE STUDY

1. IFAC AND ICEAW
:Auditing activities
International Federation ofAccountants
Institute of Chartered Accountants in England andWales

2. Contents
▪IFAC : AUDITING &
ASSURANCE
▪ICEAW

3. IFAC : AUDITING & ASSURANCE

4. History : A PRELIMINARY IDEA
The International Federation of Accountants was founded on
October 7, 1977, in Munich, Germany, at the 11th World
Congress of Accountants.
Beginning with 63 founding members from 51 countries in 1977,
IFAC's membership has grown to now
include over 175 members and associates in 130 countries and
jurisdictions worldwide.*

5. Mission AND VISION
IFAC serves the public interest and strengthens the accountancy
profession by:
 Supporting the development of high-quality international standards;
 Promoting the adoption and implementation of these standards;
 Building the capacity of professional accountancy organizations; and
 Speaking out on public interest issues.
Mission

6. CONTINUED……..
VISION
Global accountancy profession be recognized as
essential to strong and sustainable organizations,
financial markets, and economies.

7. WHY WE NEED IT?
IFAC was established to strengthen the worldwide accountancy profession in
the public interest by:
 Developing high-quality international standards in auditing and assurance,
public sector accounting, ethics, and education for professional
accountants and supporting their adoption and use;
 Facilitating collaboration and cooperation among its member bodies;
 Collaborating and cooperating with other international organizations; and
 Serving as the international spokesperson for the accountancy profession.

8. CONTRIBUTION
IFAC supports the following independent standard-setting
boards:
• International Auditing and Assurance Standards Board
• International Accounting Education Standards Board
• International Ethics Standards Board for Accountants
• International Public Sector Accounting Standards Board

9. How it is governed ?
IFAC Council
Governance of IFAC rests with it.
It comprises one representative from each member body
IFAC Board
which is responsible for setting policy and overseeing
IFAC operations
The Public Interest
Oversight Board
1. Oversees the work of IFAC’s Member Body Compliance
Program,
2. The International Accounting Education Standards Board,
3. The International Auditing and Assurance Standards Board,
4. The International Ethics Standards Board for Accountants.

10. How to become a member?
Can individual become?
No, only professional accountancy organizations are
members of IFAC
Professional accountancy organizations are first accepted as
associates; associates move toward membership

11. IFAC AND ITS AUDIT AND ASSURANCE
ACTIVITIES
The International Auditing and Assurance Standards Board
(IAASB) is an independent standard-setting body that serves
the public interest by setting high-quality international
standards for auditing, assurance.
IAASB
Enhances the quality and consistency of practice throughout the world

12. Projects of IAASB
Active Completed Ongoing

13. 1 • Information Gathering
2 • Project Proposal
3 • Exposure Draft
STAGES

14. ACTIVE -8
ONGOING-2
PROJECTS
COMPLETED-
39

15. ACTIVE PROJECTS
• Accounting Estimates - ISA 540
• Quality Control
• Group Audits – ISA 600
• Professional Skepticism
• ISA 315 (Revised)
• Integrated Reporting
• Agreed-Upon Procedures
• Data Analytics

16. ONGOING PROJECTS
• Auditor Reporting ImplementationWorking Group
• InnovationWorking Group

17. ICAEW : AUDITING & ASSURANCE
Institute of Chartered Accountants in England andWales.

18. History : A PRELIMINARY IDEA
The ICAEW was formed by five existed associations that
existed in England prior to its establishment by Royal Charter in
May 1880 (137 years ago). Those five associates were:
 The Incorporated Society of Liverpool Accountants. (1870)
 The Institute of Accountants in London. (1870)
 The Manchester Institute of Accountants. (1871)
 The Society of Accountants in England. (1872)
 The Sheffield Institute of Accountants. (1877)
*Headquarter of ICAEW is Chartered Accounts’ Hall, London

19. Do you know?
ICAEW is a world leading professional membership organization
that promotes, develops and supports more than 147,000 members
worldwide.
ICAEW salaries approximately 22% higher than other
professional bodies. (ACCA, CIMA, CIPFA)

21. Syllabus of ICAEW

22. Study
 Business - 35%
 English Classics Art - 16%
 Science - 15%
 Math - 13%
 Accounting & Finance - 11%
 Engineering - 4%
 Law - 3%
 Others - 3%
Total ICAEW’s syllabus comprise with…

24. ICAEW’s regulations, standards and
guidance
 ACA assessment regulations.
 ACA entry routes.
 Accountants and legal services.
 Accounting standards.
 Anti-money laundering guidance.
 Audit regulations and guidance.
 Continuing Professional Development (CPD) regulations.
 Code of Ethics.
 Tax guide.

25. Mission AND VISION
ICAEW serves the public interest and strengthens the accountancy
profession by:
 Provide qualifications and professional development.
 Share knowledge.
 Insight and technical expertise.
 Provide feedback.
Mission

26. CONTINUED…
VISION
Protect the Quality and Integrity of
Accountancy and Finance
profession.

27. How to become member…
Finding an employer. (There are more than 3,300 ATEs offering ACA training agreements.
Register as a student.
Complete the four elements of ACA. (3-5 years work experience at an ATE, passed 15 exam
modules, undertaken professional development, ethics and professional training)
If one have work with 10 years as a member then get opportunity to become FCA.
ACA

28. Audit and
assurance
Faculty
Practical help
Audit Exemption and Assurance services
Working in the regulated area of Audit

29. Audit technology
ICAEW is playing a leading role in trying to understand how
technology, and in particular data analytics, will impact on future of
audit.
Internal audit
Icaew INTERNALAUDIT PANEL is made up of experienced
practitioners from across private companies, financial institutes.
Improving
audit quality using root cause analysis
Special reporting
Quality control

30. Audit
exemption
FAQs
The Assurance
Sourcebook
Audit
exemption
and
assurance
service
Assurance
Here experts answer frequently
asked questions about audit
exemption
Research available tools and the
latest developments
The assurance sourcebook is a
practical guide to the fast –
developing world of assurance

31. Working in the regulated
area of audit
Firms working in the
regulated area of audit
are required to comply
with the audit regulations
andguidance.
Auditor liability
Auditor Limited LiabilityAgreements are
contracts designed to ensure that auditors
are not pursued for excessive losses, just a
reasonable proportion based on their
responsibility.
Become a registered
auditor
This section explains what
constitutes regulated audit
work, what is meant by the
term 'registered auditor'
Working in the regulated area of
Audit

32. CASES ABOUT PUBLIC PRACTICE
HOWTO USE ICAEW’S AUDITING
GUIDLINE
LET’S SEE

33. CONTINUED…………
You are one of three partners in a firm of accountants.
Five years ago the firm was appointed as external accountants to
a young, successful and fast-growing company, engaged to prepare
year end accounts and tax returns.

34. Due to your close relationship with the directors of the
company (who are its owners) and several of its staff, you
become aware that staff purchases of goods manufactured
by the company are authorised by production managers, and
then processed outside the accounting system.The proceeds
from these sales are used to fund the firm’s Christmas party.

35. Considerations
Identify relevant facts:
Identify affected parties
Who should be involved in the resolution
Determine the system currently employed for controlling staff
sales and funding the staff Christmas party.
Key affected parties are firm, client company, its directors
and staff, and users of the company’s accounts, including the
tax authority.
partners, directors should be informed
and be involved in the resolution

36. Possible course of action
Obtain the relevant details of the client’s system for accounting for staff sales
Strongly advise the directors that a staff sales policy should be introduced to ensure that these sales are fully
recorded in the company’s accounting system in the future
Explain to the directors the implications of their actions
Disassociate from any involvement with the company’s
financial statements
Documents , in detail, the steps that are taken in resolving dilemma