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Developing a Nascent Audit Profession. World Bank Advanced Program in Accounting and Auditing Regulation June 28, 2005. Overview. About IFAC IFAC Membership and Compliance Member Body Obligations Compliance Program IFAC Developing Nations Permanent Task Force

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Developing a nascent audit profession

Developing a Nascent Audit Profession

World Bank Advanced Program in Accounting and Auditing Regulation

June 28, 2005


  • About IFAC

  • IFAC Membership and Compliance

    • Member Body Obligations

    • Compliance Program

  • IFAC Developing Nations Permanent Task Force

    • Role, Objectives and Priorities

  • Establishment and Development of the Profession

    • Challenges

    • Opportunities for Co-operation and Collaboration

Developing a nascent audit profession

IFAC Today

Global organization for accountancy profession

Expanding network of 163 member bodies in 119 countries, representing 2.5 million accountants

Supported by regional accounting networks

Ifac s mission
IFAC’s Mission

To serve the public interest,strengthen the worldwide accountancy profession and contribute to the development of strong international economies

Membership and compliance
Membership and Compliance

  • Statements of Membership Obligations

    • Approved by IFAC Board March 2004

    • Basis for evaluating status of members in good standing

    • Basis for evaluating new applicants

  • Incorporate International Standards

  • Assist in implementing the International Standards

Seven smos
Seven SMOs

  • Quality assurance

  • Investigation and discipline

  • International Education Standards

  • Pronouncements and papers issued by the IAASB

  • IFAC Code of Ethics

  • IPSASs and other PSC guidance

  • International Financial Reporting Standards

Statements of membership obligations
Statements of Membership Obligations

  • Obligations whether the SMO function is the responsibility of:

    • The member body; or

    • Another body (government, regulators, other professional organization etc)

Compliance with smos
Compliance with SMOs

  • A member has used best endeavors if

    • It could not reasonably do more than it has done and is doing to meet the particular obligation

Member body compliance program
Member Body Compliance Program

  • Three key aspects

    • Regulatory and standard-setting framework fact-gathering

    • Convergence activities and gap analysis

    • Action plans and development

Compliance activities
Compliance Activities

  • Part 2 SMO Self-Assessment

    • Convergence approach

    • Standards incorporated

    • Monitoring and quality assurance programs

    • Implementation activities

  • Part 2 Basis for gap analysis

    • Reasons for not incorporating standards

    • Regulatory and resource challenges

Compliance activities1
Compliance Activities

  • Part 3 Action plans

  • Identify solutions

  • Member body responsibilities

  • Program enforcement action

    • Failure to demonstrate evidence of best endeavors

    • Lack of participation

Communicating results
Communicating Results

  • Share and exchange information

    • World Bank, development banks, donors

  • Results to be posted on IFAC website

  • Demonstrate members’ progress

    • Activities to improve audit quality

    • Basis for facilitating discussions with regulators and governments

    • Dialogue with other national bodies

Developing nations task force
Developing Nations Task Force

  • Vision

    • Every country to have a recognised member body of IFAC.

  • Mission

    • To support the development of the worldwide accountancy profession working in partnership with the global profession and other relevant organisations


  • Tools to assist professional bodies

  • Share and transfer information

    • Access to resources

    • Ways to address challenges to implementation of standards

    • Experience in facilitating regulatory reform

  • Input to standard-setting process

  • Grow IFAC membership

Role of accountancy bodies
Role of Accountancy Bodies

  • Sustainable development of profession requires a professional body

  • Objective must be to develop and enhance the profession

  • Partnership

    • Government

    • Accountants and Auditors

    • Public

Development challenges
Development Challenges

  • Capacity

  • Environment

  • Resources

Opportunities for co operation and collaboration
Opportunities for Co-operation and Collaboration

  • IFAC membership

  • Regional co-operation

  • Collaboration between the international profession, development partners, and governments


  • High quality standards and practices

  • Issues and challenges in developing and transition economies

  • IFAC activities as a platform for change and communication