The International Federation of Accountants (IFAC) is requesting proposals for the development of a practice management guide for use by small and medium accounting practices (SMPs). The purpose of the guide will be to assist SMPs in managing their practices in an efficient, profitable and professional manner. It is intended that the guide will cover a range of topics, such as strategic planning, management structure, client relationships, managing finances and risk, partnership issues, networking, and succession planning.

“The development of this practice management guide is part of the SMP Committee’s plan to provide a series of explanatory guides aimed at helping SMPs to comply efficiently with international standards and to deliver high quality, cost-effective services,” states Sylvie Voghel, Chair of the IFAC SMP Committee. The guide will be made available to all IFAC member bodies at no charge for end use by practitioners, in particular, those managing the practice.

The specifications for the Request for Proposal: Development of a Practice Management Guide for Use by Small and Medium Practices are available on the IFAC website at http://web.ifac.org/download/Practice_Management_Guide_RFP.pdf. The deadline for submitting proposals is 12:00 pm (EDT), Friday, October 19, 2007. Submissions can be emailed to Paul Thompson, Senior Technical Manager of the SMP Committee, at paulthompson@ifac.org.

Founded in 1977, IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. The organization, through its independent standard-setting boards, sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business and those working in small and medium practices.

One of the best defenses against business failure and an important driver of business performance is strong internal control. This is true for organizations globally. Recognizing this, the Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has released a new publication on Internal Control from a Risk-Based Perspective.

This information paper features interviews conducted by Robert Bruce, a leading financial journalist, with 10 senior-level professional accountants in business on their experiences and views on establishing effective internal control systems. The interviews help to demonstrate the importance of a risk-based approach to internal control in helping an organization manage its overall risk. They also shed light on the nature of risk in organizations, how to establish an internal control system focused on driving performance and supporting the delivery of strategic objectives, and success stories that can help organizations in considering improvements to their approach.

"The flood of rules and requirements that resulted from past corporate failures, and the often time-consuming and costly compliance efforts, make us easily forget that the right kind of internal controls - focused on the real risks of an organization - actually can save time, money and ensure creation and maintenance of value," emphasizes Edward Chow, Chair of the PAIB Committee.

"These interviews will help professional accountants in business and their organizations to benchmark their own organizations' internal control efforts and philosophy." This interview-based information paper is part of a larger PAIB Committee project on internal control. In 2006, the committee published an overview paper, Internal Controls - A Review of Current Developments, which reviewed current developments and some of the latest thinking in the area of internal control.

These two publications form the groundwork for the development of principles-based good practice guidance on internal control, which the PAIB Committee plans to issue in 2008. Internal Control from a Risk-Based Perspective can be downloaded free-of-charge from the IFAC online bookstore at http://www.ifac.org/store. A range of other publications on topics of interest to professional accountants in business is also available from the IFAC bookstore.

Founded in 1977, IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. The organization, through its independent standard-setting boards, sets international ethics, auditing and assurance, education, and public sector accounting standards. Through its Professional Accountants in Business Committee, IFAC issues guidance to encourage high quality performance by professional accountants in business.

To enhance the quality and consistency of audits, the International Auditing and Assurance Standards Board (IAASB), an independent standard-setting board under the auspices of the International Federation of Accountants (IFAC), is continuing to advance its project to clarify its international standards. At its July 2007 meeting in Warsaw, Poland, the IAASB approved exposure drafts of nine proposed standards, including each of its international quality control and auditor reporting standards. These have all been redrafted in accordance with the IAASB's new drafting conventions designed to improve the clarity of its pronouncements.

Further information about each exposure draft and the changes proposed therein is provided in the explanatory memorandum at the beginning of the exposure drafts. The exposure drafts may be viewed by going to http://www.ifac.org/EDs.

Quality Control Exposure Drafts
The IAASB has issued proposed International Standard on Quality Control (ISQC) 1 (Redrafted), Quality Control for Firms that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, along with proposed International Standard on Auditing (ISA) 220 (Redrafted), Quality Control for an Audit of Financial Statements.

"Together, these standards deal with important quality control considerations at both the firm and engagement levels. The standards are closely linked, and therefore, implementing clarity revisions at the same time makes sense to ensure consistency between them," explains John Kellas, IAASB Chairman.

Auditor Reporting Exposure Drafts
The IAASB has also addressed the clarification of its auditor reporting standards. The proposed clarified auditor reporting standards comprise:

• ISA 700 (Redrafted), The Independent Auditor's Report on General Purpose Financial Statements;
• ISA 705 (Revised and Redrafted), Modifications to the Opinion in the Independent Auditor's Report;
• ISA 706 (Revised and Redrafted), Emphasis of Matter Paragraphs and Other Matter(s) Paragraphs in the Independent Auditor's Report;
• ISA 800 (Revised and Redrafted), Special Considerations - Audits of Special Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement; and
• ISA 805 (Revised and Redrafted), Engagements to Report on Summary Financial Statements.

Proposed ISA 700 (Redrafted) redrafts a standard that was revised in 2004. The other reporting standards have been fully revised to update them and make them consistent with ISA 700. Those revisions were completed and approved by the IAASB in 2006, and the standards are now being issued for comment only on their redrafting into the new clarity conventions. Other

Proposed Standards
In addition, the IAASB has issued exposure drafts of proposed ISA 510 (Redrafted), Initial Audit Engagements - Opening Balances, and proposed ISA 530 (Redrafted), Audit Sampling.

Progress of the Clarity Project
All of the proposed standards have been drafted in accordance with the IAASB's new drafting conventions. These conventions include the specification of an objective within each standard and separate sections for requirements and application and other material.

The IAASB has now approved five final ISAs drafted in accordance with the new conventions and, including the eight just released, 23 exposure drafts of ISAs. The IAASB expects to issue a further seven exposure drafts this year, and to complete all 35 ISAs as final standards by the end of 2008.

Further information on the Clarity project may be obtained from the IAASB Clarity Status Report.

How to Comment
Recognizing the number of exposure drafts being issued, the IAASB has staggered the deadlines for comments:

• Comments on the exposure drafts of proposed ISA 510 (Redrafted) and ISA 530 (Redrafted) are requested by October 31, 2007.
• Comments on the exposure drafts of proposed ISA 700 (Redrafted), ISA 705 (Revised and Redrafted), ISA 706 (Revised and Redrafted), ISA 800 (Revised and Redrafted) and ISA 805 (Revised and Redrafted) are requested by November 30, 2007.
• Comments on the exposure drafts of proposed ISQC 1 (Redrafted) and ISA 220 (Redrafted) are requested by December 31, 2007.

Comments should be submitted by email to EDComments@ifac.org. They may also be faxed to IAASB ED Comments, at +1-212-286-9570 or mailed to IAASB ED Comments at 545 Fifth Avenue, 14th Floor, New York, NY 10017, USA. All comments will be considered a matter of public record and will ultimately be posted on the IFAC website.

About the IAASB and IFAC
The objective of the IAASB is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes its due process and working procedures.

Founded in 1977, IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. In addition to setting international auditing and assurance standards through the IAASB, IFAC, through its independent standard-setting boards, sets international ethics, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

Further information about IAASB may be obtained from its website: http://www.iaasb.org. The PIOB website address is http://www.ipiob.org.

To make information about its activities more accessible to a global audience, the International Federation of Accountants (IFAC) has translated core portions of its website (www.ifac.org) into Arabic, Chinese, French, Russian, and Spanish. These languages, in addition to English, which is IFAC's official language, are the official languages of the United Nations.

Translated sections of the IFAC website include the home page, information about the organization, its structure, governance and membership, as well as key information about IFAC's independent auditing, ethics, education, and public sector accounting standard-setting boards. In addition, the home pages for IFAC's resource centers for professional accountants in business and small and medium practices have been translated.

"These translations mark a major milestone in IFAC's 30-year history," states IFAC President Fermín del Valle. "If we are truly going to meet our goal of developing the accountancy profession around the world, we need to provide as many members of the profession as possible with information in their native languages. This initiative is also central to our goal of achieving convergence."

"The translations of the IFAC website involved a strong collaborative effort between IFAC and its member bodies," emphasizes IFAC CEO Ian Ball. "The assistance of our member bodies contributed substantially to the accuracy and appropriateness of the translations."

The organizations extensively involved in the translations were:

• The Chinese Institute of Certified Public Accountants (Chinese translations);
• Délégation Internationale pour l'Audit et la Comptabilité, the international arm of the Compagnie Nationale des Commissaires aux Comptes and the Conseil Supérieur de l'Ordre des Experts-Comptables (French translations);
• Instituto de Censores Jurados de Cuentas de España (Spanish translations); and
• Saudi Organization for Certified Public Accountants (Arabic translations).

Comments on IFAC's website are welcomed at any time and may be submitted online at http://www.ifac.org/Feedback/.

About IFAC
Founded in 1977, IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

This information paper features interviews with 10 senior-level professional accountants in business on their experiences and views on establishing effective internal control systems.

The International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), has issued an exposure draft proposing to strengthen three components of the independence requirements contained in the IFAC Code of Ethics for Professional Accountants (the Code).

In December 2006, as a result of a comprehensive review, the IESBA issued an exposure draft proposing revisions to the existing independence requirements contained in the Code. In that exposure draft, the IESBA indicated that there were three areas that the IESBA would revise in a future exposure draft:

• Provision of internal audit services to an audit client;
• Independence implications related to the relative size of fees received from one assurance client; and
• Contingent fees for services provided to assurance clients.

The IESBA is now seeking comment from interested parties on these three matters.

"This second exposure draft addresses the three additional elements that the IESBA considers are appropriate to protect the public interest," states Richard George, IESBA Chair. "The IESBA intends to issue the revisions from this exposure draft in mid 2008 simultaneously with the revisions to the matters that were exposed in December 2006."

How to Comment
Comments on the exposure draft are requested by October 15, 2007. The exposure draft may be viewed by going to http://www.ifac.org/EDs. Comments may be submitted by email to edcomments@ifac.org. They can also be faxed to the attention of the IESBA Senior Technical Manager at +1 (212) 286-9570 or mailed to IFAC, 545 Fifth Avenue, 14th Floor, New York, NY 10017, USA. All comments will be considered a matter of public record and will ultimately be posted on IFAC's website.

About the IESBA and IFAC
The IESBA develops ethical standards and guidance for use by professional accountants. It encourages member bodies of IFAC to adopt high standards of ethics for their members and promotes good ethical practices globally. The Public Interest Oversight Board oversees the activities of the IESBA and, as one element of that oversight, establishes the criteria for its due process and working procedures.

Founded in 1977, IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

The International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), is seeking comment from IFAC member bodies, regulators, national ethical standard setters, accountants in professional practice and accountants in business and other interested parties on an exposure draft of its Strategic and Operational Plan for the period 2008-2009.The International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), is seeking comment from IFAC member bodies, regulators, national ethical standard setters, accountants in professional practice and accountants in business and other interested parties on an exposure draft of its Strategic and Operational Plan for the period 2008-2009.

The objective of the IESBA is to serve the public interest by setting high quality ethical standards for professional accountants and by facilitating the convergence of international and national ethical standards, thereby enhancing the quality and consistency of services provided by professional accountants. In considering which new projects and activities should be undertaken, the IESBA conducted a survey of interested parties, including accountants in public practice (from large and small firms), accountants in business, regulators, IFAC members and associates, ethical standard setters and academics, to solicit views on matters that the IESBA should consider in the next few years to achieve its objective.

"In addition to suggestions for specific projects, there was a strong message from the approximately 120 survey respondents that the IESBA should place more emphasis on our convergence objective," states Richard George, IESBA Chair. "The IESBA, therefore, plans to hold four regional forums, starting in late 2008, with the objective of gaining a better understanding of the steps necessary to facilitate convergence of international and national ethical standards and achieve greater global acceptance of the Code."

How to Comment
Comments on the exposure draft are requested by August 31, 2007. The exposure draft may be viewed by going to http://www.ifac.org/EDs. Comments may be submitted by email to edcomments@ifac.org. They can also be faxed to the attention of the IESBA Senior Technical Manager at +1 (212) 286-9570 or mailed to IFAC, 545 Fifth Avenue, 14th Floor, New York, NY 10017, USA. All comments will be considered a matter of public record and will ultimately be posted on IFAC's website.

About the IESBA and IFAC
The IESBA develops ethical standards and guidance for use by professional accountants. It encourages member bodies of IFAC to adopt high standards of ethics for their members and promotes good ethical practices globally. The Public Interest Oversight Board oversees the activities of the IESBA and, as one element of that oversight, establishes the criteria for its due process and working procedures.

Founded in 1977, IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business.

In recent years, accountants in the external auditing profession have started assuring corporate sustainability reports. But are accountants adequately trained for this challenge, and do extant standards provide sufficient guidance? This presentation outlines current developments in external assurance on sustainability.

The International Federation of Accountants (IFAC), the World Bank and the Inter-American Development Bank undertook a significant collaborative effort last week by organizing an event in Mexico City titled Accounting and Accountability for Regional Economic Growth (Contabilidad y Responsabilidad para el Crecimiento Económico Regional or "CReCER" in Spanish). Over 450 individuals, including representatives of the accountancy profession, governments, the donor community, and academia from 27 Latin American and Caribbean countries as well as 16 other countries participated in this event.

"This conference was a landmark event for the Latin American and Caribbean region. Never before have public and private sector representatives from the accounting and auditing profession come together under one roof to discuss the issues facing the region," states IFAC President Fermín del Valle.

Participants indicated that combating poverty and developing stable economies are the two fundamental and interrelated challenges facing Latin American and Caribbean nations. Discussions focused on achieving quality financial reporting in the private and public sectors, the needs of the accountancy profession in the region, the role of the government in accountancy and accountancy development, and the importance of sustaining good governance and ethics.

"The conference resulted in a unanimous commitment by international stakeholders to support the improvement of financial reporting and to actively foster economic development in the region. We also heard a clear commitment from participants for convergence to international standards," added Mr. del Valle.

Other outcomes of the meeting included agreement on the following:

• The need for increased input from the Latin American and Caribbean region into international standard setting;
• The development of a single set of high quality Spanish translations of all international standards; and
• Collaboration among countries in the region as well as sustaining relationships with regional and international partners as a requisite for success.

IFAC's Developing Nations Committee and staff will be considering the outcomes of the conference as it advances its work program in the region. Copies of all presentations made at CReCER will be available here shortly.

Founded in 1977, IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 155 members and associates in 118 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high quality performance by professional accountants in business.

Good afternoon ladies and gentlemen.

Before I start I would just like to say what a privilege and a pleasure it is for me to be able to participate on this panel. I wish to focus my comments on the work of the IFAC Small and Medium Practices (SMP) Committee that I chair in helping meet the needs of SMPs in this region.

Let me first articulate what my committee suspects are the main issues confronting SMPs in Latin America and the Caribbean.

First, the issue of the relevance of international standards of accounting, assurance, education and ethics to SME/SMP. Some believe these standards are written primarily with large entities in mind resulting in over-regulation of SME/SMP. For example, we fear new auditing standards may undermine the viability of SME audits and SMPs.

Secondly there is the issue of the capacity of SMP/SME to efficiently implement, and comply with, these standards. Small practitioners lack specialist in-house resources and suffer from professional isolation.

Thirdly SMPs are faced with acute problems - increasing competitive pressures, a decreasing amount of staple regulatory work, and operational problems such as staff recruitment and retention and effective networking.