1. Page 1 | Confidential and Proprietary Information Unearthing the Power of PAOs Around the World Amarjit Chopra Deputy Chair IFAC PAO Development Committee The Exchange: Strengthening Accountancy as a Foundation for MSME Sector Development and Job Creation June 18-20, 2013 Amman, Jordan

2. Page 2 | Confidential and Proprietary Information PAOs are Important!

3. Page 3 | Confidential and Proprietary Information Why are PAOs Important to the Profession? Act in the public interest Develop and produce competent accountancy professionals Promote strong professional and ethical standards Act as a resource to government, regulators, donors, mentors, and regional and international organizations Further the quality of financial reporting

4. Page 4 | Confidential and Proprietary Information Why are PAOs Important to the Economy? Attract Foreign Direct Investment (FDI) Promote growth and development of the Small- and Medium-sized entities (SME) sector Enhance transparency and accountability in the use of public funds Improve the design and delivery of vital public services

5. Page 5 | Confidential and Proprietary Information What is IFAC?

6. Page 6 | Confidential and Proprietary Information IFAC’s Mission IFAC's mission is 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

7. Page 7 | Confidential and Proprietary Information Challenges to PAO Development Mutually Reinforcing Challenges 1. Lack of Awareness of the Value of Accountancy 2. Professional Accountancy Organization (PAO) Weaknesses 3. Lack of Capacity to Provide Vital Activities

8. Page 8 | Confidential and Proprietary Information How Does IFAC Interact with PAOs? IFAC Member Body Development Team PAO Development Compliance Program

9. Page 9 | Confidential and Proprietary Information PAO Development Committee Strategic Goals Develop the capacity of the accountancy profession Increase awareness building and knowledge sharing Foster and deepen development partnerships

10. Page 10 | Confidential and Proprietary Information Priorities at a glance Development of tools and guidance National outreach –Technical assistance –advocacy Regional collaboration –With regional organizations, accountancy groupings and donors Mentoring Program –Mentoring guidance –Promotion of successes and good practice MOSAIC MoU

11. Page 11 | Confidential and Proprietary Information Publications, Tools and Guidance

12. Page 12 | Confidential and Proprietary Information National and Regional Outreach In-country advocacy and technical assistance In-person engagement with over 100 PAOs in 2012 Discussions with PAO Boards and staff around good practice, IFAC membership requirements and the SMOs Meetings with country stakeholders and government to reinforce importance of PAOs Regional events Partnering with regional bodies to bring together PAOs from across the region Technical sessions on developing strong professions and sustainable PAOs Practical knowledge- and information-sharing between PAOs around regional success factors

13. Page 13 | Confidential and Proprietary Information Mentoring Program Raising awareness of the benefits of effective PAO-to-PAO partnerships Development of good practice guidance around direct collaboration between PAOs Creating opportunities that encourage and facilitate the formation of relationships Deliverables: –launch event “Mentoring Insights – The Mentor Perspective” –mentoring guidance –Promotion of benefits and successes through literature and events

14. Page 14 | Confidential and Proprietary Information MOSAIC MoU Signed in November 2011 - now 13 signatories: –African Development Bank (AfDB) –Asian Development Bank (ADB) –Inter-American Development Bank (IDB) –World Bank –UK Department for International Development (DFID) –Finland (FINIDA) –United States Agency for International Development (USAID) –Swedish International Development Cooperation Agency (SIDA) –Global Alliance for Vaccines and Immunisation (GAVI) –New Zealand (NZAid) –The Global Fund to Fight AIDS, Tuberculosis and Malaria –Australian Agency for International Development (AusAID)

15. Page 15 | Confidential and Proprietary Information Global Development Report (GDR) Global and regional components Essential elements of PAO development Ten key findings: –Undertaking PAO development comprehensively –Strengthening legal and regulatory foundations –Monitoring and providing support to fragile states –Support internal strengthening of PAOs –Developing PAO education and certification capacity –Broadening PAO membership bases –Furthering implementation of international standards –Supporting PAO orientation to the public sector –Strengthening Regional Organizations –Facilitating PAO mentoring relationships

16. Page 16 | Confidential and Proprietary Information The PAO Development Committee – Implementing Strategy Global Initiatives Regional Implementation Mentoring Regional Collaboration MOSAIC Tools and Guidance National Outreach Africa AAO ME ECA AC SMO Workshop in Accra, Ghana around the Second Africa Congress of Accountants Realizing the Power of PAOs workshop in Hanoi, Vietnam Focus on success factors for the Middle East at Dubai PAODC meeting Joint IFAC, IASB and IAASB event for standard-setters and PAOs of the CIS and Baltic States CReCER Integrated Communications Collaboration with IFAC Boards and Committees

17. Page 17 | Confidential and Proprietary Information PAO Development: IFAC Resources www.ifac.org/publications-resources/statements-membership-obligations-smos-1-7-revised Statements of Membership Obligations (SMOs) www.ifac.org/about-ifac/professional-accountancy-organization-development-committee PAO Development Committee www.ifac.org/publications-resources/establishing-and-developing-professional-accountancy- bodywww.ifac.org/publications-resources/establishing-and-developing-professional-accountancy- body Establishing and Developing a Professional Accountancy Body www.ifac.org/publications-resources/establishing-governance-guide-professional-accountancy- organizationsswww.ifac.org/publications-resources/establishing-governance-guide-professional-accountancy- organizationss Establishing Governance: A Guide for PAOs Marta Russell Technical Manager, Member Body Development – Asia-Pacific MartaRussell@ifac.org MartaRussell@ifac.org IFAC Member Body Development Contact

18. Page 18 | Confidential and Proprietary Information Thank You!