1. Realizing the Power of Professional Accountants
Fayezul Choudhury, Chief Executive Officer
INTOSAI Capacity Building Committee
Annual Meeting
September 19, 2017

2. International Federation of Accountants
A Global Profession
Established 1977
175+ members organizations
130+ countries & jurisdictions
3 million professional accountants in public and private sectors
Slides 2-4 provide a brief introduction to IFAC
IFAC in numbers

3. International Federation of Accountants
A Global Mission
IFAC serves the public interest and strengthens the accountancy profession by …
Supporting the development of high-quality international standards
Promoting the adoption and implementation of those standards
Building the capacity of professional accountancy organizations
Speaking out on public interest issues
Brief overview of IFAC’s public interest mission
Focus on the development, adoption, and implementation of standards, which is particularly relevant to this presentation

4. International Federation of Accountants
A Wide Remit
Private Sector
Civil Society
Public Sector
Clarify that IFAC has a wide remit spanning both the private and public sectors
Working together to protect the public interest and – so doing – civil society

5. Building Trust. Inspiring Confidence.
International Federation of Accountants
Building Trust. Inspiring Confidence.
Quality corporate financial reporting
International Financial Reporting Standards
(IFRS)
Quality public financial reporting
International Public Sector Accounting Standards
(IPSAS)
Effective assurance community
International Standards on Auditing
(ISA)
Competent professional accountants
International Education Standards (IES)
Code of Ethics for Professional Accountants
Effective professional accountancy organization (PAO)
Statements of Membership Obligations (SMOs)
Effective regulation
Slides 5-7 moves into IFAC building trust and inspiring confidence through sound global, regional, and national financial systems underpinned by international standards
Starting with the key attributes of a sound financial system and how each attribute is supported by international standards
Recognizing that all the attributes are under the umbrella of effective governance

6. IFAC’s Role in International Standard Setting
Building Trust. Inspiring Confidence.
IFAC’s Role in International Standard Setting
Facilitating the processes of the independent international standard-setting boards
Promoting adoption of the international standards
Supporting implementation of the international standards
Briefly explain IFAC’s role in international standard setting in the public interest
In addition to facilitating international standard setting in the public interest, IFAC promotes the adoption and supports the implementation of those standards through various activities, including:
IFAC Member Compliance Program
IFAC PAO Capacity Building Program
Facilitation of translations
Accountability. Now. initiative
Calls on the G-20
Guidance and tools developed by the SMPC, PAIBC, and PAODC
Speaking out activities

7. High-Quality International Standards
Building Trust. Inspiring Confidence.
High-Quality International Standards
Rigorous due process under public interest oversight—quality, credible, globally accepted standards
Foster high-quality financial information
Promote trust in governments
Promote confidence in financial markets
Facilitate regional and international economic integration
Provide an overview of the independent international standard-setting boards supported by IFAC, as well as the standards they develop
Explain how a rigorous due process under public interest oversight contributes to the quality, credibility, and global acceptance of the standards
Explain how – in turn – this contributes to better reporting, trust, confidence, and integration

8. Accountancy Education the Foundation
Building Trust. Inspiring Confidence.
Accountancy Education the Foundation
Accountancy education
Competence and expertise
Trust, ethics, credibility
A strong profession
Economic growth and stability
Slides 8-10 focus on accountancy education
Illustrate how accountancy education and practical training is the foundation of a strong profession contributing to economic growth and stability

9. International Education Standards
IES 1, Entry Requirements to Professional Accounting Education Programs
IES 2, Technical Competence
IES 3, Professional Skills
IES 4, Professional Values, Ethics, and Attitudes
IES 5, Practical Experience
IES 6, Assessment of Professional Competence
IES 7, Continuing Professional Development
IES 8, Competence Requirements for Audit Professionals
Provide an overview of the International Education Standards (IES) developed by the International Accounting Education Standards Board (IES) – i.e., reference the titles of IES 1 – 8 so as to provide a high-level understanding of the content
An IAESB project on the development/modification of learning outcomes in the area of public sector accounting, reporting, and assurance commenced in July At the moment, the responsible IAESB task force is reaching out to stakeholders, including INTOSAI, to obtain an understanding of the potential gaps in the area of competence development in the public sector

10. Professional Accountancy Qualification Journey
Education
(Initial including technical and ethics)
Practical Experience (Work experience and training)
Assessment (Examination)
Certification received
** Licensing (Certified public accountants / auditors)
Continuous Professional Development
(Lifelong learning)
Provide an overview of the professional accountancy qualification journey under IES

11. Regional Distribution of Data
Draft report covers 104 PAOs in 80 jurisdictions
Good regional distribution
Data collected through IFAC Member Compliance Program
Report updated annually
Slides discuss the status of adopting of the International Education Standards, drawing on the draft Status of Adoption and SMO Fulfillment Report, which – this year – covers 104 IFAC Member Organizations in 80 jurisdictions
Explain that all IFAC Member Organizations are subject to membership obligations, which are encapsulated in the membership admission criteria and seven Statements of Membership Obligations (SMOs)
The SMOs require IFAC Member Organizations to use their best endeavors to promote the adoption and support the implementation of the international standards in their jurisdiction
Their compliance with the SMOs is monitored under the IFAC Member Compliance Program
This slides shows the regional distribution of the PAOs covered in the draft report

12. Referring to the slide, IES is low on the list of a
The next slide shows that the adoption of IES is likely affected by the PAOs’ lack of responsibility for adoption of IES

13. This slide shows the PAOs responsibility for adoption of the various international standards; PAOs have low direct responsibility for the adoption of IES, affecting their adoption and implementation globally

14. Out of the 104 jurisdictions, 20% have fully adopted and 80% have partially adopted IES
IES have been adopted to some extent in all 104 jurisdictions

15. In the majority of jurisdictions covered in the draft report – i. e
In the majority of jurisdictions covered in the draft report – i.e., 84% - have not direct responsibility for the adoption of IES

16. Build Trust. Inspire Confidence. Coordinate. Collaborate. Partner
Build Trust. Inspire Confidence. Coordinate. Collaborate. Partner. For greater impact.
Emphasize the importance of quality accountancy education and training in both the private and public sector as the foundation for building trust in governments and inspiring confidence in financial markets
Acknowledge that the task is large and that all stakeholders, including IFAC and INTOSAI, should strive to coordinate, collaborate, and partner for greater impact