Presentation given by Russell Guthrie from the International Federation of Accountants at the Steering Committee meeting for MOSAIC (Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration), Jaipur, India, February 2012.
MOSAIC Steering Committee Meeting: IFAC, An Overview
1. IFAC: An Overview
Russell Guthrie
Executive Director, Quality and
Member Relations, IFAC
MOSAIC Steering Committee Meeting
Jaipur, India
February 2012
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2. IFAC – Current Membership Coverage
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3. What Does IFAC Do?
• Serves the public interest
• Establishes and promotes adherence to high quality
professional standards and furthers their adoption and
implementation of such standards
• Supports the global development of the accountancy
profession, professional accountants in business and
small and medium practices
• Shares in the regulation of the profession
• Speaks out on public interest issues where the
profession’s voice is most relevant
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4. An Overview of IFAC
IFAC Structure, Oversight, and Consultation
KEY
ACCOUNTABILITY
OVERSIGHT
CONSULTATION/ADVICE Monitoring
IFAC
Group
COUNCIL
Public
Audit Nominating Interest
Committee Committee Oversight
Board
IFAC IFAC
Regulatory
BOARD Liaison Group
Planning
and Finance
Committee
Forum Consultative Consultative Consultative Consultative
of Firms Advisory Advisory Advisory Advisory
Group Group Group Group
Professional Professional Small and International International International International
Transnational Accountancy Accountants Medium Compliance Auditing and Accounting Ethics Public Sector
Auditors Organization in Business Practices Advisory Panel Assurance Education Standards Accounting
Committee Development Committee Committee Standards Standards Board for Standards
Committee Board Board Accountants Board
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5. IFAC Capacity Development
Our journey begins in
February 2004
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6. Member Body Development
CAP/ PAO
Compliance Development
Program Committee
Member Body
Development
Team
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7. Member Body Development Team
• Russell Guthrie – Development/PAODC
• Sylvia Tsen – Quality/CAP
• Szymon Radziszewicz – Team Leader
• Thomas Zimmerman/Darlene Nzorubara – West Europe
and Africa
• Joseph Bryson – Latin America and Caribbean
• Daria Koukhar – North/Cent/East Europe and Central Asia
• Gabriella Kusz – Southern Europe and Middle East
• Marta Russell – Asia - Pacific
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8. Compliance Program: Purpose
• Encourage continuous improvement and development
• Evaluate the extent to which members are meeting the
SMO requirements
• Advise PAOs and other stakeholders in adopting and
implementing international standards and best practices
• Demonstrate progress being made
• Promote transparency through publication of responses on
the IFAC website
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9. Focus on the Compliance Program
7 Statements of Membership Obligations
SMO1 Quality Assurance
SMO2 International Education Standards
SMO3 International Standards on Auditing
SMO4 International Code of Ethics
SMO5 International Public Sector Accounting Standards
SMO6 Investigation and Discipline
SMO7 International Financial Reporting Standards
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10. Compliance Program
Self -Assessment
Overview of national
Benchmarking against the 7
regulatory and standard-
SMOs
setting framework
Action Plan
Strategic document illustrating a PAOs progress toward, or
continued compliance with, SMO requirements
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11. The PAO Development Committee
The overall objective is to enable PAOs to be capable of:
• Producing competent and capable professionals;
• Furthering the adoption and implementation of
international standards;
• Acting as a voice for the profession; and
• Assisting government, regulators and other stakeholders
with sound public policy guidance and advice on private
and public sector accountancy related topics
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12. The PAO Development Committee
Developing the capacity of the accountancy profession
Increasing awareness building and knowledge sharing
around adoption and implementation of international
standards
Engaging and deepening development partnerships with
the international donor community, regional
organizations, and public/private sector stakeholders
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13. The PAO Development Committee
Regional Implementation
Support of PAFA launch
ADVANCE Initiative
IO Collaboration Joint PAO workshop with
CAPA in Vietnam
Ambassadors
Key issues discussion at
PAODC meeting
Regional Collaboration
Mentoring
Baltic/CIS States
standard- setter event
CReCER
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14. Mentoring Insights Workshop – February 17, 2012
• Attended by representatives of 25 PAOs/ROs/AGs
currently providing or interested in mentoring
• Objectives
– Raise awareness of responsibilities and successes of mentoring
for capacity development
– Obtain further input for development of Mentoring
Guidelines/Toolkit
• Panel Discussion with 3 developing PAOs
– Benin
– Kosovo
– Mongolia
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15. Where we are today
• Established technical architecture for PAOs
– SMOs
– Action Plans
• Clear strategic commitment to development of the
profession
– PAODC
• Engagement with Donor Community
– MOSAIC
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16. Mutual Interests - But more to be done
Private
Public Sector
Sector
Donors
√ √
IFAC
√ √
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17. MOSAIC – The opportunities
• MoU represents an achievement for mutual
understanding and future cooperation
• Accountancy profession has proven it can
be a effective development partner
• IFAC and the wider accountancy profession
are prepared, with your support, to take the
important next steps
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18. Thank You
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Hinweis der Redaktion
Global organization for the accountancy professionComprised of 167 Members and Associates in 127 countriesMembers and Associates are Professional Accountancy OrganizationsRepresents 2,5 millions accountants in public practice, business, government, and academiaOne thing we have learned – different ways to effectively organize the profession, different legislative frameworks, different stakeholder expectations and capacity – we have a developed a global framework
Going to focus on Compliance Program and PAO Development specifically.
The Member Body Development team includesseventechnical staff who support both the Compliance Program and PAO Development Committeestrategy. Theyholdregional portfolios in Africa, Americas and Caribbean, AsiaAustralasia-Oceania, Middle East and Europe and Central Asia.Combined, the staff has proficiency in six languagesincludingArabic, French and Spanish.
The staff holdregional portfolios covering Africa, Americas and Caribbean, AsiaAustralasia-Oceania, Middle East; and Europe and Central Asia. Combined, they have proficiency in six languagesincludingArabic, French and Spanish.
Can be used as a basis for identifying donor collaboration / mentoring opportunities!
Program and Compliance Advisory Panel (CAP) launched in 2004 as part of IFAC reforms. PIOB Oversight – Observers at CAP meetings since 2007Established the 7 Statements of Membership Obligations (SMOs) which serve as the Program’s basis and provide benchmarks for PAOsEncourage continuous improvement and developmentEvaluate the extent to which members are meeting the SMO requirementsAssist members in adopting and implementing international standards and best practicesDemonstrate progress being madePromote transparency through publication of responses on the IFAC website. IFAC’s 167 members and associates are required to participate in the Compliance Program to demonstrate that they are maintaining their good standing and addressing the requirements of IFAC membership. Through the Compliance Program IFAC gathers and publishes a great deal of information relating to the work of its member bodies around the world and the developments within national professions. This information can be leveraged by donors, regional bodies, regulators and indeed mentors interested in development of the profession.
How does the PAO Development Committee achieve this objective? Through three strategic activity streams:Developing the capacity of the accountancy profession to produce high-quality financial information and sound financial management systems capable of supporting financial stability, economic growth, and social progress. The Committee produces tools and guidance and conducts technical assistance to facilitate capacity development at both the national and regional levels. Increasing awareness building and knowledge sharing around adoption and implementation of international standards. The Committee works to enhance the understanding of the importance that IFAC, PAOs, regional organizations and accountancy groupings, and the donor community play in international development. It also encourages and supports the mentoring of PAOs in developing and emerging economies by regional organizations, accountancy groupings, and more developed bodies. Engage and deepen development partnerships with the international donor community, regional organizations, and public/private sector stakeholders. The Committee shares resources, knowledge, and experience, and deliver guidance, advice, and assistance in an efficient and effective manner.
The Committee’s ongoing activities:Supporting implementation of MOSAICDevelopment and implementation of regional strategies Coordination of activities with ROs/AGsOutreach to support national PAOsInput into Mentoring Program