The SMP Committee presentation outlined their role, objectives, strategic initiatives, and risks and opportunities. Their role is to provide input to standard setting and help adoption/implementation of standards for small-and-medium practices. Strategic initiatives included providing comments on standards, guides for implementing standards, and resources for practice management. Risks included regulations not being proportionate or relevant for SMPs and competition from unqualified practitioners; opportunities included growth areas for advisory services. They invited representatives to their annual SMP Forum in Uganda.

1. SMP Committee – Strategic
Initiatives
Giancarlo Attolini, Chair, Small and
Medium Practices Committee
IFAC Board Meeting
New York, USA
September 7, 2012
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2. Presentation Outline
• Role and Objectives of the Committee
• Risks and Opportunities
• Strategic Initiatives
• Questions and Answers
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3. Role and Objective of the SMP Committee
• Alignment with IFAC mission
– Emphasis on input to standard-setting and adoption and implementation
• IFAC Board review of the SMP related activities
– Increased SMP representation in standard-setting
– Facilitate sharing of tools and resources (SMP Committee)
– Input into regulation (SMP Committee, PPRAG)
• Strategy and work plan development
– IFAC strategy
– Environmental scan
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4. Role and Objective of the SMP Committee
• Strategy and work plan development (cont..)
– MB and stakeholder consultation: IFAC Global Leadership Survey, SMP
Forum, Quick Poll
• Composition
– 18 members (assurance providers and business advisors)
• (Virtual) 7 Task Forces
• Operating principles
– Member body focus
– Make collaboration work
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5. Risks and Opportunities
• Member body and stakeholder feedback
– Standards and regulation need to be proportionate, stable and relevant
– Competition from unqualified & non-accountants
– Pressures facing SMEs impact the demand for services
• Enhancing the profession’s relevance
– Practitioners enjoy a reputation for competency, trust, and responsiveness
(according to our study)
– Growth of business advisory, assurance services other than audit, and
accounting & compilations services
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6. Strategic Initiatives – Input to Standard-Setting
• Input to standard-setting
– 2005 protocol with IAASB: input to draft standards (hopefully IESBA soon)
– Comments on exposure drafts (IAASB, IESBA, etc)
– Two members on the IESBA SME and SMP Working Group
– Responding to IFRS for SMEs consultation, Auditor Reporting and
Suspected Illegal Acts
– YTD: over 20 draft pronouncements
• Comment letter to IIRC
– Discussion Paper, Towards Integrated Reporting
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7. Strategic Initiatives – Input to Public Policy and
Regulation (PPR)
• SMP Committee chair on the PPRAG
• PPR Task Force
• SMP Committee staff review and input to IFAC PPR
– EU Green Paper Proposals
– PPP 5, International Standard-Setting in the Public Interest
– PPP 2, Support for a Single Set of Auditing Standards
• Comment letter on proposed IFAC Statements of
Membership Obligations
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8. Strategic Initiatives – Adoption and Implementation
• Facilitate adoption and implementation of international
standards
– ISA Guide
– Quality Control Guide
– Requests by over 40 unique member bodies/audit authorities (use or
translate)
• Guide to Review Engagements
– Help member bodies support their SMPs in implementing ISRE 2400
– Request for Proposal (RFP) issued August 16
– Committee to review outcome at October 2012 meeting
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9. Strategic Initiatives – Development and Quality
• Helping Member Bodies respond to SMEs demand for
business advice
– Move away from traditional services (e.g., accounting, audit)
– Short “tips” and articles for member body use
– Collaboration with PAIB Committee on emerging topics such as
Sustainability and IR (joint e-News with PAIBC)
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10. Strategic Initiatives – Development and Quality
• Raising awareness about the role of practice management
– Good practice management contributes to quality
– Guide and tools to assist member bodies
• IFAC member body SMP Community
– LinkedIn group for member bodies only
– Share information, news, ideas and resources/tools
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11. SAVE THE DATE – ICPAU, PAFA, SMP Committee
• What? Annual IFAC SMP Forum
• When? June 5, 2013
• Where? Kampala, Uganda
• Who should attend? Representatives from IFAC member
bodies (technical staff, SMP and SME affairs, etc),
government agencies, donor organizations, standard
setters, and others
• For more information on this annual event, see
www.ifac.org/2012SMPForum
• For more information contact PaulThompson@ifac.org
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12. Thank You
www.ifac.org/smp
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