IFAC Board member Masum Turker presents at the HLB International Conference

1. The Global Accountancy
Profession and the Role of IFAC
Masum Turker
TÜRMOB
HLB International Conference
October 13, 2012
Istanbul, Turkey

2. The International Federation of Accountants
• The global organization of the accountancy profession
• Approximately 2.5 million accountants in public
practice, education, government services, industry,
and commerce, in 127 countries

3. IFAC Vision
• That the global accountancy profession be recognized as
a valued leader in the development of strong and
sustainable organizations, financial markets and
economies.

4. IFAC’s Mission
• To serve the public interest by:
– Contributing to the development, adoption and implementation of high-
quality international standards and guidance
– Contributing to the development of strong professional accountancy
organizations and accounting firms, and to high-quality practices by
professional accountants
– Promoting the value of professional accountants worldwide
– Speaking out on public interest issues where the accountancy profession’s
expertise is most relevant

5. The International Federation of Accountants
• The reputation of the accountant:
– Post crisis
– Ethical responsibilities

6. The International Federation of Accountants
• Supports four independent standard-setting boards
– Audit and assurance
– Education
– Ethics
– Public sector accounting

7. The International Auditing and Assurance
Standards Board
Board
• Serves the public interest
• Sets high-quality standards in auditing and assurance
• Facilitates the adoption and implementation of
international standards
• 82 jurisdictions are using or plan to use the clarified ISAs
• Highlights of key current board activities
– A top priority for 2012-1014: Enhancement of auditor reporting standards
• Invitation to Comment: Improving the Auditor’s Report
– Compilation Engagements―ISRS 4410 (Revised)
– Landmark Standard on Greenhouse Gas Statements

8. The International Accounting Education Standards
Board
• Strengthens the worldwide accountancy profession by
enhancing education
• Develops and implements International Education
Standards (IESs)
• Highlights of key current board activities
– Revise and redraft its suite of eight IESs

9. The International Ethics Standards Board for
Accountants
• Develops and issues high-quality ethics standards and
other pronouncements
• The IESBA Code of Ethics for Professional Accountants
applies to all professional accountants, whether in public
practice, business, education, or the public sector
• Highlights of key current board activities
– Groundbreaking Exposure Draft―Responding to a Suspected Illegal Act

10. The International Public Sector Accounting
Standards Board
• Sets International Public Sector Accounting Standards
(IPSASs), guidance, and resources for use by public
sector entities around the world for general purpose
financial reporting
• Has developed and issued:
– 31 accrual standards
– A cash-basis standard for countries moving toward full accrual accounting
• Highlights of key current board activities
– The Conceptual Framework for General Purpose Financial Reporting by
Public Sector Entities
• The IPSASB’s highest profile project
• Goal: completion in late 2013

11. Compliance Advisory Panel
• Responsible for admission of new Member Bodies (MB)
• Responsible to ensure MBs comply with Statements of
Membership Obligations (SMOs)
• Revised SMOs―awaiting approval

12. The International Federation of Accountants
• IFAC has three constituency-focused committees:
– Professional Accountancy Organization (PAO) Development Committee
– Professional Accountants in Business (PAIB) Committee
– Small and Medium Practices (SMP) Committee

13. PAO Development Committee
• Addresses the challenges facing the development of
strong professional accountancy organizations (PAOs) in
emerging and developing countries
• Brings together PAOs from developed and developing
nations
• Highlights the economic and social benefits that a formal
profession can bring
• Highlights of key current committee activities
– Establishment of MOSAIC

14. Professional Accountants in Business Committee
• Provides leadership and guidance on relevant issues
pertaining to professional accountants in business
• Highlights of key current committee activities
– Competent and Versatile: How Professional Accountants in Business Drive
Sustainable Organizational Success (August 2011)
– New International Good Practice Guidance (IGPG), Evaluating and
Improving Internal Control in Organizations(Q4 2012)
– International Framework for Good Governance in the Public Sector (Q2
2013)

15. Small and Medium Practices Committee
• Raises the profile of SMPs globally
• Represents interests to standard setters and regulators
• Develops tools and resources to promote continued
success
• Highlights of key current committee activities
– SMP Quick Poll
– SMP LinkedIn page
– Guide to Review Engagements
– Practice Management Guide (revision)

16. Public Policy and Regulation
• Role of Public Policy and Regulation (PPR)
– Develops policy position papers
– Prepares responses to consultations
– Assists in preparing content for speeches
– Participates in the PSTF on IFAC’s behalf
• Highlights of key current PPR activities
– Policy position papers
– Comment letters
– Speeches and representation

17. Forum of Firms
• Forum of Firms (FOF)
– Association of international networks of accounting firms
– Perform transnational audits
• HLB:
– Member of the Forum of Firms (FoF)
– Supports IFAC through FoF contributions
– The Transnational Auditors Committee (TAC)
• Executive arm of FoF and also IFAC Committee
• Encourages members to meet high-quality standards

18. Integrated Reporting
• Representation of a company’s performance in terms of
both financial and non-financial results
• Clarifies how sustainability fits into a business
• May help embed sustainability into company decision
making
• The International Integrated Reporting Council has wide
support to develop an integrated reporting framework
• The role of IFAC
• The role of the PAIB

19. www.ifac.org