The document discusses a presentation given by Giancarlo Attolini, Chair of the IFAC SMP Committee, at CReCER 2013 in Cartegena, Colombia. The presentation covers: 1) The importance of SMEs and SMPs in supporting private sector growth. 2) Key findings from the IFAC SMP Quick Poll on challenges facing SMEs and SMPs, including regulatory burden and economic uncertainty. 3) The role and activities of the IFAC SMP Committee in developing standards and guidance, and facilitating implementation through resources like implementation guides.

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Global Insights from IFAC SMP
Committee
Giancarlo Attolini, Chair, IFAC SMP
Committee Chair
CReCER 2013
Cartegena, Colombia

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Agenda
• Importance of SMEs and SMPs
• IFAC SMP Quick Poll
• Role of IFAC SMP Committee
• Implementation Guides
• References

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Importance of SMEs and SMPs
• SMEs typically account for majority of private sector
GDP, employment and growth
• SMEs typically look to practitioners, especially SMPs, for
range of professional services (assurance to advice)
• SMPs and SMEs often constrained by lack of in-house
resources and expertise to efficiently implement standards

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IFAC SMP Quick Poll – About
• Identify key challenges and issues for SMPs (& SME clients)
• Runs in 17 languages (including Spanish and Portuguese)
• Almost 4,000 respondents to May-June 2013 poll (4% from
Central and South America/Caribbean)
• Report, with regional analysis, to follow in 7-10 days at
www.ifac.org/smp
• Preview of key findings….

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IFAC SMP Quick Poll – Key Findings I
• What is the biggest challenge faced by your small- and
medium-sized entity (SME) clients?
23%
17%
16%
13%
11%
8%
7%
5% Burden of regulation
Economic uncertainty
Pressure to lower prices of their products and
services
Difficulties accessing finance
Rising costs
Lack of demand for their products and services
Competition
Attracting and retaining staff

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IFAC SMP Quick Poll – Key Findings II
• What is the biggest challenge your practice is facing right
now?
25%
23%
20%
7%
6%
6%
5%
4%
2% 2%
Keeping up with new regulations and standards
Pressure to lower fees
Attracting and retaining clients
Work-life balance
Attracting and retaining staff
Competition
Rising costs
Ability to adapt to changing client needs
Keeping up with new technology
Succession planning

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IFAC SMP Quick Poll – Key Findings III
• Other findings (previous editions of poll)
– Complexity of regulation and tax rules in particular presented the
greatest challenges for SMEs
– Pace of change of new regulation/standards and tax rules in
particular presented the greatest challenges for SMPs
– Of those using the IESBA Code of Ethics, most cited barrier to fully
adhering to it was understanding requirements

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Role of IFAC SMP Committee – Mission
• Standards and Guidance: Contributing to the development of
international standards and guidance that are stable, relevant, and can be
applied in a manner proportionate to the size of an entity or practice
• Adoption and Implementation: Facilitating the adoption and
implementation of high-quality international standards and guidance
by SMPs and SMEs
• Development and Quality: Building competence and relevance of
SMPs through IFAC member bodies and other professional accountancy
organizations and promoting the value of SMPs
• Speaking Out: On public interest issues of relevance to SMPs & SMEs

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Role of IFAC SMP Committee – Key Activities
• Building and sharing knowledge, including access to
resources and tools, amongst member bodies and SMPs
– Implementing standards (ISAs, IFRS for SMEs, ISQC 1, IESBA Code etc.)
– Insight articles (e.g., efficiently auditing SMEs, review engagements)
– Guides on how to efficiently implement ISAs and ISQC 1 (guidance, case
studies, checklists etc.)
– New guide to implementing ISRE 2400 on review engagements (Q4 2013)
– Suite of links to free resources from member bodies (e.g., AICPA)
– IFAC Global Knowledge Gateway (from 2014)

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Implementation Guides – ISA Guide Volume 1
Fundamental concepts
of a risk-based audit in
conformance with the
ISAs

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Practical guidance on
performing SME audits.
Includes two illustrative
case studies—one of an
SME audit and one of a
micro-entity audit
Implementation Guides – ISA Guide Volume 2

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Implementation Guides – QC Guide
Helps SMPs apply ISQC 1
proportionately and efficiently.
Includes guidance, case study
sample QC manuals and
checklists

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References – General
 IFAC SMP Committee website: http://www.ifac.org/smp
 IFAC SMP Twitter: https://www.twitter.com/IFAC_SMP (please follow us)
 IFAC SMP eNews: https://www.ifac.org/login?register (please subscribe)
 IFAC SMP Community:
http://www.linkedin.com/groups?home=&gid=4542841&trk=anet_ug_hm (please join us)
 IFACnet: http://ifacnet.com/
 IFAC SMP Forum: http://www.ifac.org/news-events/2013-06/2013-ifac-small-and-medium-
practices-forum
 Resources and tools (all): http://www.ifac.org/about-ifac/small-and-medium-practices-
committee/smp-resources-and-tools
 IFAC Translations Database: http://www.ifac.org/about-ifac/translations-
permissions/translations-database (scroll down for Spanish and Portuguese)

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References – Adoption and Implementation
 Guide to Using International Standards on Auditing in the Audits of Small- and Medium-
Sized Entities (Third Edition) (incl. companion manual and slides):
https://www.ifac.org/publications-resources/guide-using-international-standards-auditing-
audits-small-and-medium-sized-en (see Translations Database for Spanish)
 Guide to Quality Control for Small- and Medium-Sized Practices (Third Edition) (incl.
companion manual and slides): www.ifac.org/publications-resources/guide-quality-control-
small-and-medium-sized-practices-third-edition-0 (see Translations Database for Spanish)
 ISRS 4410: The Standard for Today's Compilation Engagements article:
https://www.ifac.org/news-events/2012-07/isrs-4410-standard-todays-compilation-
engagements
• The Standard for Limited Assurance Review Engagements article:
http://www.ifac.org/news-events/2012-12/standard-limited-assurance-review-engagements
• Links to other implementation resources: https://www.ifac.org/aggregator/sources/7

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