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 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 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.

Good morning ladies and gentlemen. Thank you for participating today in this regional conference for the Caribbean and Latin America on accounting and accountability for regional economic growth.

Together with the World Bank and the Inter-American Development Bank, it is our intention that this conference provide us the opportunity to identify the principal challenges and questions that the region needs to address and, above all, to permit us to identify concrete solutions and, in some cases, to consider collaborative projects that make these solutions viable or more efficient. ** Note: Attached below are the English and Spanish versions of this speech.

Professional accountants in business worldwide will get added assistance from the International Federation of Accountants (IFAC) in the form of new international principles-based good practice guidance. A newly released exposure draft (ED), Preface to IFAC's International Management Accounting Statements and International Good Practice Guidance, developed by IFAC's Professional Accountants in Business (PAIB) Committee, sets out the objective, scope and due process of two new types of guidance: International Management Accounting Statements and International Good Practice Guidance. The PAIB Committee seeks input on the approach to representing good practice to professional accountants in business and the proposed document types.Professional accountants in business worldwide will get added assistance from the International Federation of Accountants (IFAC) in the form of new international principles-based good practice guidance. A newly released exposure draft (ED), Preface to IFAC's International Management Accounting Statements and International Good Practice Guidance, developed by IFAC's Professional Accountants in Business (PAIB) Committee, sets out the objective, scope and due process of two new types of guidance: International Management Accounting Statements and International Good Practice Guidance. The PAIB Committee seeks input on the approach to representing good practice to professional accountants in business and the proposed document types.

Together with the draft Preface, the PAIB Committee has released new guidance on developing codes of conduct and has issued an exposure draft of the first International Management Accounting Statement. (See below.)

International Management Accounting Statements and International Good Practice Guidance establish fundamental principles and provide supporting application guidance to reflect good practice. In addition, the new guidance signposts other sources of information, such as those developed by national professional accountancy bodies. The guidance documents may also serve as a leadership tool that professional accountants can use in promoting sound financial and management accounting practices within their organizations.

"The release of the proposed Preface represents the start of a significant work program for the committee," says Edward Chow, Chair of the PAIB Committee. "The new pronouncements will contribute to better decisions in organizations and enhance the level of support to and competence within the global community of professional accountants in business. I encourage professional accountants in business to use these pronouncements to promote good practices in the organizations in which they work."

New Guidance on Developing Codes of Conduct
The PAIB Committee has released the first International Good Practice Guidance, Defining and Developing an Effective Code of Conduct for Organizations. This guidance will assist professional accountants and their organizations in developing and implementing a code of conduct within a values-based culture. It can be downloaded from the IFAC online bookstore at http://www.ifac.org/store. The PAIB Committee welcomes further feedback on this document during the exposure period for the Preface.

Exposure Draft on Project Appraisal Using Discounted Cash Flow
In addition to the above, the PAIB Committee has also issued an ED of a proposed International Management Accounting Statement, entitled Project Appraisal Using Discounted Cash Flow. The proposed International Management Accounting Statement aims to support professional accountants in business in applying and promoting the use of discounted cash flow and net present value to evaluate investments. It sets an international benchmark for using discounted cash flow in project appraisal and provides principles that reflect widely accepted good practice, supported by guidance to facilitate their application. The ED asks for feedback on both the content and approach.

Looking Ahead
Over the next year, the PAIB Committee plans to develop proposed principles-based pronouncements on internal control from a risk management perspective, using cost information effectively, and enterprise governance. The PAIB Committee is also using the proposed International Management Accounting Statement on Project Appraisal Using Discounted Cash Flow to solicit feedback on future topic selections to support this document.

How to Comment
Comments on the proposed Preface and proposed International Management Accounting Statement are requested by September 12, 2007. The EDs may be viewed by going to http://www.ifac.org/EDs. Comments may be submitted by email to EDComments@ifac.org. They may also be faxed to the attention of the PAIB Committee Technical Manager at +1-212-286-9570 or mailed to PAIB Committee Technical Manager 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.

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.

Note to Editors:
Attached to this press release is a questions and answers document developed by the Professional Accountants in Business Committee to explain the rationale for and approach to its new program to develop principles-based good practice pronouncements.

The International Federation of Accountants (IFAC) is inviting all participants in the financial reporting supply chain, including investors and other users of financial reports, standard setters, preparers, auditors, academics, and regulators to complete a global survey designed to obtain information that could strengthen the financial reporting process.The survey, which may be completed through July 6, 2007, is part of an IFAC project designed to analyze the financial reporting supply chain and to develop recommendations to further improve the quality of financial reporting. It can be accessed online in Publications & Resources.

Specifically, the survey seeks the views of those in the financial reporting supply chain on corporate governance, financial reporting, and financial auditing and asks what actions they think will further improve the quality of the financial reporting process. The survey will be complemented with a number of in-depth one-on-one interviews.

"The survey and interviews also seek opinions on the usefulness of financial reports and how these reports might be made more relevant, understandable and reliable. This information is especially valuable as, ultimately, it is the financial reports that influence investors and other stakeholders in their decisions about public companies," states project chair Norman Lyle. Mr. Lyle recently retired as Group Finance Director of Jardine Matheson Holdings Limited in Hong Kong and is a former President of the Chartered Institute of Management Accountants (CIMA) in the United Kingdom, an IFAC member body.

This global initiative will evaluate past recommendations made by IFAC to improve the quality of the various links in the financial reporting supply chain, including those expressed in the IFAC reports, Rebuilding Public Confidence in Financial Reporting: An International Perspective(2003) and Challenges and Successes in Implementing International Standards: Achieving Convergence to IFRSs and ISAs (2004). It will also identify newly emerging issues and innovations and develop proposals to further improve the quality of the financial reporting process. A final report will be issued by the end of the year and will be posted on the IFAC website.

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 International Good Practice Guidance is designed to assist professional accountants and their organizations to develop and implement a code of conduct in a values-based culture.

Good evening, ladies and gentleman.

I'm very happy to be here with you all this evening. I am sure you will join me in thanking our hosts, the Association of Chartered Certified Accountants (ACCA), for the wonderful dinner this evening. I would like also to thank Allen Blewitt, ACCA's Chief Executive, for the invitation to speak with you this evening.

As indicated in its "European Manifesto," the ACCA shares IFAC's focus on education and training, financial reporting, auditing, small business issues and corporate governance. The manifesto makes an important point that I would like to reiterate: "Forming partnerships is key to shaping the EU's future agenda." In addressing so central an issue as regulation of the profession, I believe that it is vital for IFAC, its 155 member bodies worldwide, and regional organizations like FEE, to work in partnership to shape the agenda. As in so many other matters, collaboration in relation to regulation is essential.